POSITION OF WAR-LOAN HOLDERS.
Probably the numerous readers of this article who are holders of the 5 per cent. War Loan will be expecting to obtain a " straight, tip " as to, whether at the present price the 5 per cent. War Loan should be sold on the prospects of conversion. I am afraid, however, that I 'cannot give this ""straight tip," for while some time ago when the 5 per cent. Conversion Loan was issued at par it was fairly easy to recommend holders of the 5 per cent. War Loan who had the option to do so to exchange into that Loan, I find it more difficult to-day to make up my mind that holders of the 5 per cent. Wat Loan need necessarily be urged to realize their stocks and exchange into the longer dated issues. In the first place, by so doing they must accept a very much lower yield from the long-dated stocks, while, in the second place, they also relinquish the right to have their dividends paid free of tax, a point of considerable con- venience to small- holders. While, however, I find myself unable confidently to predict a great upward movement in the long-dated Government Loans and an early scheme for converting the whole of the 6 per cent. War Loan, may, perhaps, put forward some general considerations with regard to the matter which may be useful to those who are considering the precise significance of the present rise in British Funds.
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