| Admin History | At the beginning of 1920 the government was faced with the necessity of meeting £200,000,000 exchequer bonds maturing during the year, of which £150,000,000 was represented by the 6% Exchequer bonds due in February. £35 millions Exchequer bonds had already matured in the previous October.
Having considered different options [details of which are outlined on pp. 455-456, M7/156], the 5 ¾% Exchequer bonds were issued at par, repayable in 1925; a holder might, however, give notice during January of 1921, 1922 or 1923 requiring repayment on the 1st February of the year following that in which notice was given.
The application lists opened on the 20 Jan 1920 and closed on 14 February for conversion applications and on 28 February for cash applications. The conversions were in respect of:
6% Exchequer bonds 1920 (20A29/6)
3% Exchequer bonds 1920 (20A29/2)
5% Exchequer bonds 1920 (20A29/4)
holders of which were offered like amounts of the new Loan in exchange for their maturing bonds. Conversion options were exercised to a total nominal value of £99,531,151, i.e. about 50% of the 1920 maturities; cash applications amounted to £67,215,864 (nominal): both figures were larger than had been expected.
The whole of the subscription money was payable on application, and the management of this issue was relatively simple. |