AUSTRALIAN LOANS

Dominion, Volume 18, Issue 113, 5 February 1924, Page 6

AUSTRALIAN LOANS

AGREEMENT OF STATE AND FEDERAL TREASURERS TERMS FOR BORROWING FIXED By Telegraph—Press Association. Copyright. Melbourne, February 4. Announcing that a temporary agreement had been reached by a conference of Federal and State Treasurers m regard to Australian borrowing, Dr. Earle Page stated that the maximum rate of interest would be 6 per cent., subject to Commonwealth tax, with a .maximum term of ten years, at this rate, and the term not to be varied 1 xcept by consent of the Loan Council until the Commonwealth had the epportunity of arranging for the redemption of the war gratuity bonds. The States agreed that as far as practicable they would not undertake any propaganda relating to their own issues, but this will not limit their sales over the counter for immediate requirements. The State Treasurers undertook to report to their respective Governments the position relating to loans for renewals and new money with a view to endeavouring to limit as much as possible lean requirements. They further undertook to confer with the Cabinets with a view to aiTanging authority for the Loan Council to determine the time and method for placing loans of the Commonwealth and States respectively on the Australian market, and as to allocation of the amounts to be applied for in Australia. In consideration of a loan granted, Queensland undertook not to borrow in Australia before the end of June, 1924, and West Australia agreed that any amount borrowed in Australia by West Australia before that date should be used to reduce by instalments the loan granted by tire Commonwealth.

Dr. Page further stated that it would be necessary for the Commonwealth at an early date to approach investors in Australia for an important amount, as 19) millions’ worth < f war gratuity bonds had to be redeemed by May next, besides money lor other Commonwealth requirements. -Press' Assn.