London, Aug. 2.
An official announcement to-day said_that more than 2,036,000 holdexs put of the 3,000,000' total of owners of 5 per cent. War Loan had applied for conversion of their holdings during July.
'Their holdings, after December 1, }will be converted into the new 3 per cent. War Loan. Since they applied for conversion before July 81, in accordance with Chancellor of the Exchequer's offer, they will receive, within the next' two weeks, bonus of £1 for every £100 they have authorised to be converted, Many of those who have already applied for conversion have voluntarily renounced their rights to the lone per cent. bonus. Those who ac-Jeept the bonus need not pay income tax on it. Trustees, who have converted the loan on behalf of their wards, may collect the bonus and pay it as income, not subject to in-leone tax. They need not consider it as capital.
One-third of the conversion campaign is now over. Holders who have not yet applied for conversion lor for redemption have two more months, until September 30, to advise the government of their dissent from the scheme. Holders who have Jalready done so or who during the ext two mentha apply for redemp. tion of their holdings, will be paid Jeff in cash at par on December 1. Holders who have taken no action land who take mo acti September 30 will be considered as having accepted the conversion offer id their holdings will be automatic cally transferred into the 34 per jeent. War Loan on December 1. The only exceptions to the time-limit will be holders who prove to the satisfaction of the Bank of England that the delay in giving notification was due solely to their permanent or temporary absence from. the United" Kingdom, Information is not yet available ax to the number of foreign holders of th oan who applied for "A year or two ago it was estimated that between £300, and £500,- 000,000 of the loan was held abroad. On July 7 the Treasury announced that it was estimated that foreign holdings were not greater than ££100,000,000, and. probably as low as £50,000,000. Apparently.
oreign holdings were liqui during the flight from the pound The new 3} Per Cent War Loan to be issued on December 1 in place of the present 5 Per Cent, 'Loan, cannot be converted or redeemed until December 1, 1952. When the 5 Per Cent. War' Loan' was floated the Government reserved the right the to convert it or redeem it at any time after 192, thus. authorising the present conversion—If too many holders decline to accept conversion by September 20 it is con fidently expected that the Government will offer them some short term security, carrying probabl not more than 3) interest, whic they may accept instead of cash on December 1—United Press.
The newspapers express great gratification at the. undoubted Success of the' operation and the figures to date fulfil the highest expectations. They show that out of every 100 holdings in respect which applications have been received 03" are. for conversion into the new 38 per cent. stock and only seven for redemption.
Almost without exception, the big Iroldings in the hands of insurance companies, banks, municipalities and Targe finis ave been converted=—Wireless Through Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.