Financial Notes
CONVERSION PLAN PROGRESS.
INTEREST in the stock markets has centred mainly in the gilt- edged section during the past week, when British Government securities well maintained the advance which followed upon the Government's declaration of its conversion plan. The initial response to the scheme has undoubtedly been excel. lent, although it would nothave been at all surprising had there been a little hesitation at first in view of the sharpness of the drop in the interest rate and possible uncertainties whether the prices of long-term Government securities will be maintained when the scheme is out of the way. There is no doubt, however, that the Government has chosen a favourable moment for launching the plan. With industry depressed and foreign securities very much out of favour, owing to the long list of defaults, there are very few channels open to the investor to give a better yield than British Government stocks without accepting a very much lower degree of security. As the end of the month approaches, after which the £1 per cent. bonus on conversion will no longer be claimable, a big rush to con- vert seems probable.
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