The Loan Conversion Mr. Chamberlain and the Bank of England
are to be congratulated on the success of the War Loan conversion scheme. The conversion of stock to the value of £1,850,000,000 out of a total of £2,086,000,000, or 90 per cent. of the whole, is a triumph that far surpasses Goschen's celebrated con- version of 80 per cent. of the 3 per cent. Consols in 1888, when he had to deal with a total of £558,000,000. The scheme was well advertised, and the bonus of £1 per cent. to holders who accepted the terms by July 31st was attractive. But, when all is said, the main credit is due to the patriotic investor who so readily agreed to take 31 per cent. instead of 5 per cent. when the country needed the sacrifice. It is stated that up to the end of July holders of stock for £48,000,000 applied for redemption, but that much of the stock outstanding, for £188,000,000, may be converted before September 30th. In any case the amount that will have to be found in cash will be relatively small. British credit is thus strengthened and from next year the Chancellor of the Exchequer will save some £20,000,000 in interest less income tax. It remains for him to devise substantial economies in public expenditure, so that the good effect of the loan conversion may be emphasized. * * * *
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