Financial Notes
GOVERNMENT LOAN SUCCESS.
• rin: Government can be congratulated upon the immediate success which attended the cash portion of its new issue of 5 per cent. Treasury Bonds of which I gave some particulars in this column last week. The bonds, which bear interest at 5 per cent., were offered both to cash subscribers and to holders of obligations maturing next September. The issue price to cash subscribers was 101 and the prospectus stated that the lists for such subscribers would be closed " by or before the 4th January." As a matter of fact, the lists were shut on Friday, December 30th, the Treasury having evidently secured sufficient funds to meet all obligations maturing in MOCK and April next. On the other hand, the lists for con- vetting' next September maturities remain open until the 11th inst., and, because I know that the Spectator reaches many who arc not in daily touch with financial affairs in the City, I am glad to take this opportunity of drawing their attention to the.-advantages which accrue to them from conversion:- In the first place, the premium at which their existing bonds stand is duly recognized in the terms on which they can convert. In the second place, although the new bonds into which they exchange are short-dated, holders will have the option for the next eighteen months, at certain periods, of changing into a long-dated Government stock on satisfactory terms. In the third place, the present upward trend of securities suggests that holders of these maturing Government bonds will be well advised to accept the present offer rather than to run the chance of being able to reinvest their capital next September on as good terms.
Previous page
