| Level | Series |
| Creator Name | Bank of England Accountant's Department |
| Reference Number (click to see whole series/group) | 20A29/14 |
| Extent | 148 items |
| Title | 3 1/2% CONVERSION LOAN 1961 OR AFTER - ISSUED APR 1921 |
| Date | 1 Apr 1921 - 9 Oct 1935 |
| Admin History | Over £600,000,000 National War Bonds were maturing between October 1922 and September 1925, and a conversion loan on a large scale became inevitable. Any new stock created for this purpose should not be of such a character as to afford direct comparison with such issues as the 5% War Loan or the 4% funding loan. It was therefore decided to issue a 3 ½ Conversion Loan irredeemable for 40 years and thereafter redeemable at par at the option of the Government. The yield on conversion was approximately £5:12:10.
The application lists were open from the 26th April to the 28th May 1921, and the total amount of National War Bonds (Bank issue) converted was a little over £164,000,000 [details of conversion terms can be fopund on p. 460, M7/156]. The popularity of the conversion was much greater in the case of the shorter dated bonds, with very little of the 1924 and 1925 issues being surrendered. No cash applications were invited.
After the prospectus was issued it was decided to exempt the interest on this loan from Corporation Profits Tax.
Conversion of (conversion information from Pember & Boyle):
5% National War Bonds
5% Exchequer Bonds 1922
5 1/2% Treasury Bonds 1929
3 1/2% War Loan 1925-28
4% National War Bonds |
| Related Material | 20A29/5/1/18
AC27/2908, 2914, 2917
7A356/4, 6, 7, 8 |
| YearOpen | 2015 |