loan for its extinction on or by that date. Debtors with very high credit have been able in times past to dispense with this obligation, but the financial exigencies of the war and after-war period have obliged the Governments of the highest standing to spread the jam thick on securities that they offer to the public, and the British 5 per cent. War Loan carries with it an obligation on the part of the Government, wheneven the market price of the stock is below 95 to set aside one-eighth per cent. of the outstanding amount of the loan each month to be used in the purchase of stock in the market; with the result that if the stock stood below 95 for a year there would be in effect a 1½ per cent. Sinking Fund, operating by purchase in the market. It is now some time since this provision has been effective, but it was at one time a valuable prop to the price of the stock. The 3½ per cent. Conversion Loan has a still more effective Sinking Fund clause in its contract which obliges the Government whenever the stock is below 90 to redeem each year 2 per cent. of its outstanding amount. Owing to the low rate of interest and consequent low price of the stock in the market, the effectiveness of this Sinking Fund, which is calculated, of course, on the face value of the stock, is all the greater. When the stock can be bought at
