THE BIG LOAN

Evening Post, Volume CX, Issue 144, 16 December 1930, Page 14

THE BIG LOAN

AUSTRALIA'S EFFORT

tIKELIHOOD OF SUCCESS

''Evening Post," ICth December. The success of the great Australian iujernal loan of £28,000,000 now- seems ' to fle assured, although the closing of subscriptions lias been extended until tomorrow. It is reported by cablegram today (published elsewhere in this issue) that £27,000,000 is in sight. Possibly the .whole of the amount required, and more, as already assured, but for "window drossing" purposes publication of the fact is held back to the last moment. ■If, as seems most probable, the full amount is already disposed of it will rightly be regarded as v splendid achievement for the Australian people, especially in their present adverse circumstances; arid it should go far to restore the cou■Jidence of overseas as well as Australian investors. But it cannot be expected to So all the way in the direction desired so long as the present complex political conditions remain. Tho £28,000,000 is required to meet '£18,500,000 of Commonwealth Government 6 per cent, loan which matured yesterday; and £9,500,000 is required to meet maturing State securities. The terms offered by the Federal Government —the loan being sanctioned by the Loan Council— for subscription to or conversion into the £28,000,000 loan were as follow:— 6 per cent, for two years, due 15th December, 1932; 5% per cent, for ten years, due 15th December, 1940; and. 5% per cent, for twenty years, due 1950. The loan is. issued at par. Provision was made for taking up subscriptions by instalments or by cash. Originally the December Commonwealth loan totalled £60,000,000, explained Mr. Lyons, Acting Federal Treasurer, but the conversion operation of March last and redemptions from sinking fund and other moneys have reduced the outstanding indebtedness to approximately £20,000,000. As £2,000,000 of sinking fund moneys jwill be available to pay off holders who are not in a position to convert, the amount to be covered on 15th December Sfas £18,000,000. In addition, it is necessary to provide for a shortage of £600,----©OO on a Northern Territory loan, which recently matured, and for £9,400,000 of State securities maturing in the near On Wednesday last £14,604,500 had been 'subscribed to the loan by 20,903 investors, conversions amounting to £7,676,590 and new cash to £6,927,910. Few bond-holders tad redeemed their bonds, and there remained on Friday last £12,000,000 of the old loan for which the owners had not applied to the Treasury for payment. The subscriptions on Wednesday numbered 3535 applications, bringing the total ■t0'26,903, and the total amount to £14,604,----500. The figures for the respective States ;were: —

Amount. ■ State. Subscribers. £ New South Wales 5,816 4,247,760 Victoria 12,506 7,136,210 Queensland 3,913 1,517,850 South Australia .. 2,216- 840,960 Western Australia 1,104 , 388,160 Tasmania 1,258 473,560 ' Totals 26^903 14,604,500 The Acting Treasurer's offer to casla IBonds immediately was not much availed of, only £315,000 of tlie maturing loan having been surrendered.