The Dominion. FRIDAY, SEPTEMBER 15, 1933. OVERSEAS CONVERSIONS IN LONDON

Dominion, Volume 26, Issue 301, 15 September 1933, Page 10

The Dominion. FRIDAY, SEPTEMBER 15, 1933. OVERSEAS CONVERSIONS IN LONDON

Australia is continuing her version loans on the. L °* d ° n J?j£ inter estebearing stocks which she had money » or 066,000 in Australian currency. shortly be added the savings on the latest convers£ "I?"* of stock which Sries’ SXSSS” included in W ' S Tt r " lSe£d that before the year ends, Australia wili deal her remaining high-interest stocks m London, ma mly 5| per cents There is as yet no indication that she will be able to follow up ner success in New York, where her bonds are at a heavy discount She has borrowed over £47 million in that market, the bulk at rates betweenand 7 per cent. The 6 and 7 per cent, loans are a legacy f rom Mr. regime in Queensland and were most costly before the obligations in New York, but many people are inclined to ask why the Domimon does the Commonwealth’s conquering progress m London The Southla Power Board, for instance, argues that because it hasTeceived in London loan charges, it is entitled to take some by declining to pa> in sterling. The fact is, however, that except on °M 5 million, there is at present no option to convert New Zealand Govern ment loans. Most of the maturity dates are set some years ahead. When the Prime Minister returns from London on bunclay,, ne may be able to state what are the prospects of converting maturing national and local loans. It is more than likely that these have been clouded owing to the disputes as to whether interest on certain loca. loans should be paid in sterling or New Zealand currency. At any rate there does not seem to be much hope of launching what some people have in mind, d large-scale conversion of unexpired Stocks on the lines of what has already been done in the cape of Australian and New Zealand internal loans. - x r Incidentally it would be interesting to have a complete return ot local body loans falling due in London in the immediate future. Some fairly large amounts are reaching maturity.. New Zealand local body indebtedness in London exceeds £l7 million, bearing interest at an average rate of 5.16 per cent. That would not have been, considered dear, were it not for exchange charges arid the reduction in the local rate to a4| per cent, standard. Obviously the chances of convertmg maturing London loans ? to advantage have been lessened by the recent questions raised about existing obligations.