| Admin History | At the end of April 1920, the issue of reducing the debt due within the next year or two was again addressed. It was considered that the financial position would be eased enormously if repayment of a large part of the floating debt could be postponed for five years, and the issue on the 30th April of the 5-15 year Treasury Bonds (an invention of the Bank) was an endeavour in this direction.
The bonds were issued at par, the whole amount being payable on application, with interest payable half-yearly on the 1st May and the 1st November. The bonds were to be repayable on the 1st May and the 1st November. The bonds were to be repayable at par on the 1st May 1935, or on the 1st May in any of the years 1925 to 1934. Interest was to be at a minimum rate of 5% per annum, with provision made for additional interest during the period ending 1st May 1925, under particular circumstances.
The original issue was withdrawn on 30th October 1920 and a second series (Series ‘B’) was issued between 1st November 1920 and 30 April 1921). This issue was not very successful. The total of the two issues was £23,646,550, of which £20,8000,000 was represented by cash applications and the balance by conversions.
Holders of the 5% Exchequer bonds 1920 had the option of conversion at par into the Series ‘B’ bonds. On the 2nd April the two series were amalgamated. |