14 APRIL 1888, Page 15

THE NEW CONVERSION SCHEME.

[TO THE EDITOR OF THE "SPECTATOR."] 'SIR,—Your correspondent, Mr. Walter Phillimore, in his letter in your issue of April 7th, appears to me to have fallen into an error in assuming that by paying the dividends on Consols quarterly, instead of half-yearly, we are treating them in this year as a 4 per cent. stock. The dividend paid in January last was, of course, for the interest of the previous half-year ; and as holders of the new stock will, up to January 5th, 1889, receive only four dividends of 15s. each, plus the 5s. bonus for conversion—that is to say, RS 5s. for the year, from January 5th, 1888, to January 5th, 1889—I fail to see how we can arrive at more than 31 per cent. for this year.—I am, Sir, &c.,

E. E. S.