AUSTRALIA'S LOANS

Evening Post, Volume CVIII, Issue 147, 18 December 1924, Page 11

AUSTRALIA'S LOANS

HUGE CONVERSIONS

£68,813,950 NEXT YEAR.

(FROII OUR OWN CORRESPONDENT.)

SYDNEY, 10th December. . Huge as have been the loan transactions of the Federal Government during the present year, next year will witness transactions for the conversion of a much greater sum, representing the greatest conversion operation eve? undertake,, by the Commonwealth. On 15th December, 1925, £68,813,950 of 4i per cent, stock and bonds, redeemable in Australia, will mature. The Treasury will endeavour to stcure the continuance of the loan by means of conversion. Ihis loan was free of Federal income tax., Since the Commonwealth and the States have agreed not to issue any more tax-free loans next .years conversion flotation will probably be issued at 5* per cent. Mr. J. E. bollms, Secretary to the Treasury, states that as this will be the largest operation of its kind yet attempted plans lor handling it have been under consideration for some time. "We are conticlent of a successfur result," he said, but details of conditions of issue cannot be announced at present." The large redemption and conversion loans of 1923 and 1924 provided for the continuation SL a- 5PP er cent- war loan of £38,693,UW, which matured on 15th September, 1923, and for meeting war gratuities which matured on 51st May 1924 and totalled £19,606,428. Of the £38,----693,050 due to holders in the 5 per cent, war loan £23,836,824 was converted into new securities, leaving a balance of £14,856,226 to be redeemed. Towards the payment of that balance £8,Y48,999 in new cash was received from the public, leaving a shortage on the whole loan operation of £6 106 527 which was not out of balances in' the Ireasury. One the indebtedness of £19,- ---$; bfi noo respecfc o£ war gratuities £.5,951,092 was converted into new holdings of inscribed stock and bearer bonds Ihe balance of war. gratuity indebtedness which the Treasurer was called upon to redeem after allowing for the con™oHnn S Was £15>&75,336, of,which £7,IVJ,b'3V was provided by new cash received from the public and £6,C00,CG0 was subscribed by the note issue department of the Comm.onwealth Bank. The £6,000,000 was used to pay off the war gratuity indebtedness of the Treasury to the banks. These operations left a shortage of £1,972,746 on the war bkituity transactions of the year, winch wag found out of balances in the Treasury.