User-agent: AmazonBot Disallow: / 15th July 1921 War Loan 5% Registered 1929-47 @ 88 STOCK EXCHANGE Newcastle-on-Tyne F.E THEW R. MIDDLEMAS, Esq. CONTRACT NOTE Stamped GEORGE V SIX PENCE | British & Far East Traders Lifestyle
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Last Updated on: 18th February 2021, 08:08 pm


15th July 1921


War Loan 5% Registered

1929-47 @ 88







4 Mosley Street
15th July 1921
“Shares, Newcastle-on-Tyne”
Telephone Central 1695
To R. Middlemas Esq. ,
Dear Sir,
I beg to advise having to-day sold
for your account as under;
Yours faithfully, 
Fred E Thew
£ 120 War Loan 5% Registered 1929-47 @ 88 :
£ 105.12
Stamp and Fee 
Contract Stamp 
For Settlement cash
Subject to the Rules and Regulations of the Stock Exchange
£ 104.11

Available at:





United Kingdom


The British Sovereign Will Win / Invest in the War Loan To-Day

A British publicity label from World War One.


In August 1914 the gold reserves of the Bank of England,

and effectively of all banking institutions in Great Britain,

amounted to £9 million.[14]

The banks feared the declaration of war

would trigger a run on the banks,

so the Chancellor David Lloyd George

extended the August bank holiday for three days

to allow time for the passing of the Currency and Bank Notes Act 1914,

by which Britain left the gold standard.


Under this Act the Treasury issued £300 million

(equivalent to £25.1 billion in 2013) of paper banknotes,

without the backing of gold,

with which the banks could repay their obligations.[14]


Leading banker Walter Leaf described these Treasury notes as

“essentially a War Loan free of interest,

for an unlimited period,

and as such was a highly profitable expedient

from the point of view of the Government”.[15]


The first interest-bearing War Loan

was issued in November 1914 at an interest rate of 3.5%,

to be redeemed at par value in 1925–28.

It raised £333 million;

£350 million at face value as it was issued at a 5% discount.[16]

It was revealed in 2017 that public subscriptions amounted to £91m,

and the balance had been subscribed by the Bank of England,

under the names of then governor,

John Gordon Nairne, and his deputy Ernest Harvey.[17]


It was followed by £901 million of a second War Loan in June 1915,at 4.5%.

£17.6 million of this was accounted for by conversion of the 3.5% issue,

and a further £138 million by holders of 2.5% and 2.75% Consols,

who were also allowed to transfer to the higher interest rate.[14]

The government also pledged that if they issued War Loans

at even higher interest,

holders of the 4.5% bonds might also convert to the new rate.[14]

In his memoirs Lloyd George stated his regret

that his successor Reginald McKenna

increased the interest rate at a time

when investors had few alternatives.

Not only did it directly increase the nation’s annual interest payments

by £100 million but it meant interest rates were higher

throughout the economy during the post-war depression.[16]

Compared to France,

the British government relied more on short-term financing

in the form of treasury bills

and exchequer bonds during World War I.[18]

Treasury bills provided the bulk of British government funds in 1916,

and were available for terms of 3, 6, 9 and 12 months at an interest rate of 5%.[18]

Although these were not formally designated as war bonds,

advertising was explicit about their purpose.

This April 1916 advertisement for 5% Exchequer bonds was typical of the time:

“Lend Your Money to Your Country.


The soldier does not grudge offering his life to his country.

He offers it freely,

for his life may be the price of Victory.

But Victory cannot be won without money as well as men,

and your money is needed.

Unlike the soldier,

the investor runs no risk. 

If you invest in Exchequer Bonds your money,

capital and interest alike,

is secured on the Consolidated Fund of the United Kingdom,

the premier security of the world.”[19]


Policy changed when Asquith‘s government fell in December 1916

and Bonar Law became Chancellor in the new coalition government.

The third War Loan was launched in January 1917

at a 5% discount to face value and

paying 5% interest (or 4% tax-free for 25 years),

a rate Lloyd George described as “penal”.[16]

Holders of existing War Loans,

Treasury Bills and War Expenditure Certificates

could convert to the 5% issue.[14]


Of the £2.08 billion raised by the 5% War Loan,[20]

only £845 million was new money;

the rest was conversions of £820 million of 4.5% Loan,

£281 million of Exchequer Bonds and £130 million of Treasury Bills.[14]

Labour politician Tom Johnston

would later write of the 1917 War Loan

“No foreign conqueror could have devised

a more complete robbery and enslavement of the British Nation”.[14]


On 30 June 1932 Neville Chamberlain announced

that the Government would exercise its right to call in the 5% War Loan,

offering a choice of taking cash or continuing the loan at 3.5%.[21]

Although they were obliged to give 90 days’ notice of such a change,

a 1% tax-free cash bonus was offered to holders who acted by 31 July.[21]

This conversion saved the government about £23 million net per year.[21]

On 3 December 2014 the UK Government announced

it would redeem the outstanding war loans on 9 March 2015.[22]




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