Financial Notes
NEW GOVERNMENT LOAN.
IN view of the fact that over £250,000,000 in Government Bonds will mature during the coming year the Authorities have probably been well advised in taking time by the forelock and announcing forthwith a new Loan for conversion purposes. At the moment of writing the terms of the issue have not been stated, but it is known that the Loan will be in the form of 4 per cent. Consolidated Stock, and that it will not be redeem- able before February 1st, 1957, and only then at the option of the Government. There is also to be a Post Office issue, so that the Government evidently has the small investor in mind. As regards maturing debt, the Government has to provide for about £27,000,000 in Treasury Bonds maturing in February next, and for National War Bonds amounting to about £238 millions maturing on October 1st. In view of this large amount it is not surprising that in addition to the conversion otter, the Government should also be inviting cash subscrip- tions. While, however, promptitude in the matter of dealing with maturing debt is to be commended, the City is by no means enamoured of the continued process of Government loans being issued at a considerable discount, thereby greatly increasing the nominal amount of Debt outstanding.
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