FEDERAL FINANCE
TERMS FOR LOAN CONVERSION GRADUAL DECLINE OF INTEREST RATES By Telegraph.—pbess Association. —Copyright. Melbourne, April 10. Dr. Earle Page, Commonwealth Treasurer, has announced the Stock Exchange terms for the Federal loan conversion issue. Ho explained that the Commonwealth intended inviting holders of 5 per cent, inscribed stock and Treasury bonds maturing in Sep' tember, to convert them into 5 per cent, stock maturing in twenty-five years, hence.a £1 bonus for each £lOO converted will also be paid and interest on the conversion loan will ba immune from State taxation. Dr. Earle Page added that the loan of £44,000,000 floated in 1918 for five years was too short, and if redeemed in September would mean the unloading of such a big parcel that it would far exceed the demand for investment, and would consequently reduce the rates of interest. The tendency throughout tho money markets of the world, lie said, was indicated by the gradual decline of the rate of interest to 3} . per cent., hence .he suggested that holders would bo wise in investing in Government securities at 5 per cent, for a lengthy period. Critics of the proposal argue that the Government’s terms are. niggardly, taking advantage of a flooding market in September to obtain terms which are slightly unfair. —Press Assn.
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Bibliographic details
Dominion, Volume 16, Issue 174, 11 April 1923, Page 7
Word Count
215FEDERAL FINANCE Dominion, Volume 16, Issue 174, 11 April 1923, Page 7
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