| Admin History | The loan consisted of two distinct issues: a 5% War Loan 1929-1947 at 95 subject to Income Tax (Series 20A29/5) and a 4% War Loan 1929-1942 at 100 free of income tax (Series 20A29/6). The prospectus for both loans was issued on the 12th January 1917.
Holders of:
- 4 ½ War Loan 1925-45 (20A29/3)
- 5% Exchequer Bonds 1919, 1920 and 1921 (20A29/4 and 5)
- 6% Exchequer bonds 1920 (20A29/6)
were given the right to convert into the new loan [item M7/156, p. 418 provides details on the conversion rates], though the two new issues carried no conversion rights with respect to future loans. An interval (which extended from the 17th February to the 30th June 1917) was created during which those who decided to convert had their conversion holdings stamped “B” for conversion into the 5% War Loan and “C” for conversion into the 4% War Loan. The conversions were dealt with first and almost completed before the cash applications. Additional amounts were received for the purpose of rounding off uneven holdings resulting from conversions.
Treasury Bills under discount at 5% and War Expenditure Certificates at 5 ½ % were accepted in lieu of cash in payment for fully paid allotments.
This loan was the largest financial effort so far made by the UK or any other country, and was accompanied by large scale publicity. 8½ million prospectuses, 20 million application forms and more than 3 million conversion forms were distributed. The lists were open for five weeks, the last day being the 16th February. To encourage early applications, special interest payments would be made for all applications lodged before the end of January, and as a result £290,498,300 of the loan were applied for through the Bank before the end of January. The total ‘new money’ obtained during the five weeks was over £960,347,000; of this only about 2% was represented by applications for the 4% tax free loan. 78% of the total applications was paid in full.
The aggregate total of the two loans was £2,127,985,066 [item M7/156, pp. 425-427, provides separate amounts for each loan, including sums raised by cash subscriptions and conversions, and by the Bank’s issue, Post Office issue, and Treasury Bills and War Expenditure Certificates; also provides number of subscriptions for each loan]. Further amounts of 5% and 4% loans were created by conversion in 1918 and subsequent years.
Because of the size of this loan, processes were streamlined. Additional space was required, and premises were taken at Moorgate Hall; the Grocers’ Hall in Princes Street was also utilised. Additional staff was employed, including temporary female staff in daytime. In the evening, the women’s place was taken by civil servants, insurance office clerks and clerks from other banks, working from 5pm to 11pm or later. A permanent team of seven men from the Head Office supervised the work of the day and evening staff, assisted by women working as section leaders. The registration of cash application was completed on Sunday 26 March 1917, two months after the prospectus was issued.
It was decided to use the £4:10s/-% Stock Ledgers (20A29/3) for conversion into £5% and £4% stocks, the accounts being stamped ‘B’ and ‘C’ according to whether they were to be converted into £5% or £4% stock.
The £4:10s/-% ledgers at one time contained the registration of four distinct kinds of stock:
£4:10s/-% stock
Ditto ‘B’ stock
Ditto ‘C’ stock
£5% War Stock
Eventually the £4:10s/-% and ‘C’ stock were eliminated from the ledgers, which became part of the 5% War Series. |