CONVERSION LOAN.

Bay of Plenty Times, Volume LVIII, Issue 10295, 5 February 1930, Page 4

CONVERSION LOAN.

OVER £10,000,000 AT 6 PER CENT,

Sydney, Feb. 3 The Commonwealth Givernment has announced the terms of a conversion loan of £10,600,000, which is falling due on March 15. The terms are 6 per cent, at par with a currency of seven years. The National Debt Commission will provide out of the sinking fund £1,100,000, leaving £9,500,000 to be provided for. Holders of the 6 per cent, loan of £60,000,000, maturing on December 15 next, will also have an opportunity to convert. A conference was held during the week-end between the Prime Minister, Mr J. H Scullin, the Federal Treasurer, Mr'E. G. Theodore, the Premier of New South Wales, Mr T R. Bavin, and the State Treasurer,' Mr B. S. Stevens, concerning the grave financial position of New South Wales, due largely to the prolonged and disastrous coal dispute and the serious decline In wool prices. The discussions were held in private. Mr Bavin stated afterwards that the State’s difficulty was iu obtaining loan money for the continuance of public works. If the money for this purpose could not be obtained drastic retrenchment would have to be considered. Finality, however, has not been reached. The Prime Minister had emphasised the desirability of finding a settlement of the coal dispute as an incentive to the investment of loan issues and the restoration of confidence iu Australia. Mr Scullin described the whole problem of obtaining finance for all the States as very serious. The conference was not concluded.