COMMERCIAL

Press, Volume LXXXIV, Issue 25389, 12 January 1948, Page 8

COMMERCIAL

BRITISH EMPIRE LOANS

RATES OF INTEREST DISCUSSED

(N.Z. Press Association— Copyright) LONDON, Jan. 7‘. With official abandonment of the 24 per cent, level of interest rates, further loan conversions by Empire Governments are to be expected, says the "Financial Times.” Market authorities seem prepared to accept 3 per cent, as the basic borrowing rate as a result of the Treasury decision to issue British Transport guaranteed stock, 1978-88, at par, bearing interest at this rate, to holders of securities in railways, canal and inland navigation undertakings, which are now nationalised. Conversion of the New South Wales loan, 51 per cent., 1947-57, to the 3 per cent, level seems to be a reasonable prospect, states the “Financial Times.” This, it adds, is likely to be one of the earliest conversions. The amount of the loan outstanding is £5tg.17,870,500. The Commonwealth Government discussed the question of repaying this stock last autumn, but the Treasury, under the lead of the then Chancellor, Mr Dalton, insisted on conversion to 24 per cent. The market was then falling, and Australia was advised to wait. Conditions propitious for the transaction have now developed.

The transport stock has settled down on the London Stock Exchange with remarkable rapidity. Institutional buying has been a feature of this business.

The British Treasury’s insistence upon the Commonwealth conversion of the £17,870,1)00 sterling loan may throw some light on the decision of the New Zealand Minister of Finance, Mr W. Nash, not to proceed with the repayment of £19,000,000 sterling in London on March 1, in accordance with his intention announced in the Budget in August last. The absence of notice of redemption which was expected on December 1 caused some surprise in the London market, but no official explanation was forthcoming from Wellington. BRITISH SURPLUS WAR EQUIPMENT SALES TOTAL £450,000,000 The British Government has made £450,000,0C0 in the last two years out of selling surplus stores and equipment. This task, says the “News Chronicle,” is in the hands of the Ministry of Supply’s directorate of disposals—the largest selling organisation in the world. Its job has been to collect, value, and sell surplus stores not only in Great Britain, but also in 63 foreign countries. Overseas sales in the last two years have amounted to £ 155,000,000. . • The directorate has now sold 360,000 vehicles valued at £37.000,000, as well as 200,000 bicycles and 93,000 motor-cycles worth £2,000,000. The sale of 621,000 clocks and watches brought in £2,000,000, and surplus clothing £15,000,000. That includes 150,000,000 garments of all kinds, weighing 117,000 tons. Industry has been supplied with 130,000 machine-tools worth £35.000,000. Markets have been found for masses of Lancaster bombers, block-busters,, castoff battledress, toothbrushes' and infants’ feeding bottles. The catalogue includes gliders, bridges. Mulberry harbours, wireless valves, parachutes, laundry equipment, cinema projectors, mobile power plants, household furniture, cranes and chemical plant. Of the stock of tanks, 170 are now being used as open-cast coal operators; 1000 Bren gun carriers have become trac-

Household goods already sold include 6,000,000 blankets and 1,350,000 towels. An-

other sale disposed of 200,000,000 sandbags. Surplus British aircraft are now operating in almost every country in the world. At home, unsaleable aircraft have been broken up for scrap and supplied the aluminium for 54,000 houses. One Lancaster bomber gives the metal for three houses. The directorate also arranges for tne breaking-down of ammunition so that the component materials can be recovered. At Pembrey, North Wales, more than 800 tons of fertilisers have been produced from broken-down ammunition. Stocks are now beginning to get smaller but - the end of these mass sales is still nowhere in. sight.