| Admin History | Another attempt to provide for early maturities was made by the daily issue on and after the 12th July 1921 of 5 ½ % Treasury Bonds 1929. There were two Series of these, the first issued at 97% and the second at 98%.
Interest was free of Corporation Profits Tax and the bonds were convertible at the holder’s option on the 1st April and the 1st October 1922, into 3 ½ % Conversion Loan at the rate of £146 Conversion Loan for each £100 of Bonds converted.
Moreover, as regards the first Series, on giving notice not later than 26th July 1921, holders of 5% Exchequer bonds and 5% National War Bonds maturing between the 5th October 1921 and the 1st September 1923 had the option of surrendering their holdings and receiving in exchange like amounts of treasury bonds together with a cash payment of £3:10: - or £4 per cent, according to the maturity of the particular security surrendered.
The 5-15 years Treasury Bonds had been transferable in multiples of £5; the £5 ½ Bonds, however, were transferable in multiples of a penny.
The result of this issue of 5 ½ % Treasury Bonds was in striking contrast to that of the last ‘tap’ loans, the 5-15 year Bonds. The Bonds produced some £10 millions from the 12th to the end of July, £6 ½ % millions only in August, but in September no less than £4o millions were raised, this figure including a subscription of £10,000,000 from Lloyds Bank. The conversions, however, were rather less satisfactory([figures for Bank of England and Post Office issues, for cash and conversions for the two Series, can be seen on p.464, M7/156).
Conversion of (conversion information from Pember & Boyle):
5% Exchequer Bonds 1921
5% National War Bonds 1922
5% National War Bonds 1st Apr 1923
5% National War Bonds 1st Sep 1923 |