TREASURY BILLS

Evening Post, Volume CXI, Issue 44, 21 February 1931, Page 8

TREASURY BILLS

AUSTRALIAN PAYMENTS

A FAVOURABLE IMPRESSION

United Press Association—By Electric Telegraph—Copyright. (Received 21st February, 3 p.m.) LONDON, 20th February. The announcement that the Commonwealth is paying off short-term five millions Treasury bills on 2nd March, has created a most favourable impression ia the city. It is considered to be a welcome gesture against the repudiationists and also a useful tonic to investors, who were fearing that a default was imminent. There is the strictest secrecy as to where they are obtaining the money. Most guess the Bank of England. ' The effect on, the Stock Exchange is very satisfactory, andl not only checked a decline in Australian stocks, but several showed an appreciable recovery. Dealings in Commonwealth fives were recorded, ranging from 64 to 66*, and sixes 70 to 74. Victorian fives are at 61, and Jfc* Soutli AValcs threes at 50 to 57 and five-and-a-quarters at 7J to 76.

"Though the constructive part of the work of rehabilitation in Australia remains to bo done," says the "Statist," "wo can- derive satisfaction from the check administered to the forces of destruction. The decision to repay the five million sterling Treasury bills maturing on 2nd March is wise, as a more opportune moment to renew could not bo chosen."