AUSTRALIAN LOAN

Evening Post, Volume CXXVII, Issue 132, 7 June 1939, Page 14

AUSTRALIAN LOAN

LONDON RECEPTION

FINANCIAL PRESS OPINION

(By Telegraph—Press Association—Copyright.)

(Received June 7. 9 a.m.)

LONDON, June 6,

"Australian issue -£6,000,000 worth of 4 per cent, registered bonds to meet Australian defence expenditure in the United Kingdom."

The loan has been given a mixed reception in the newspapers. The "Financial Times" expresses its discontent that the Commonwealth should have entered the market before sufficient time had elapsed to enable the digestion of the recent South African and Northern Ireland issues.

The "Financial News'' similarly considers that the market is "not yet in a condition to bolt a heavy meal," though it admits that the terms of the Australian loan are generous, even overgenerous, in the eyes of Australians. The "Manchester Guardian's" city correspondent considers that the loan will have nothing like the over-sub-scription of the Northern Ireland and South African loans as the Commonwealth loan is for a much long or dated period without offering more than a fractional additional yield.

The result of the Australian issue will give an indication to New Zealand of what terms that Dominion may expect for its forthcoming conversion. But it is unlikely to shed a light on British borrowing. because patriotic appeals to investors would play a part in taking up such loans.