Conversion

"The British took the initiative--they pointed the way !" cried beak-nosed French Finance Minister Louis Germain-Martin in Paris last week. He was speaking of the bold lead taken by beak-nosed Chancellor of the Exchequer Neville Chamberlain when he offered to holders of $7,500,000,000 worth of 5% British War Loan Bonds the alternative of asking repayment of their money in paper pounds or accepting new bonds paying only 3 1/2% (TIME, Aug. 15). This example. M. Germain-Martin handsomely declared, gave him courage to offer holders of $3,332,000,000 worth of 7%, 6% and 5% French bonds either their money back or new bonds paying 4 1/2%.

The British and French conversion periods both ended last week. M. Germain-Martin gave his countrymen only six days in which to make up their minds, instead of three months, which was the British period of grace. Both conversions were highly successful, only 8%. of the British bondholders asking for their money and only 1% of the French.

"Many of those [Frenchmen] who did demand cash " said M. Germain-Martin, "gave as their reason that they 'fear an imminent war.'

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