AUSTRALIAN LOANS

Greymouth Evening Star, 15 July 1933, Page 7

AUSTRALIAN LOANS

CONVERSION ISSUE ARRANGED SEQUEL TO RECOVERY [BY CABLE —PRESS ASSN. —COPYRIGHT.] LONDON, July 14. Once again Australia has obtained exceptional treatment by the temporary lifting of the British loan embargo for her seventeen millions operation which completes fifty millions of Australian loan conversions within eight or nine months. Admittedly, the market, at the moment, is not too favourable for this operation, but an opportunity had to be taken to make the conversion issue now, as, otherwise, it would have entailed waiting for a couple of months till the holiday season is over, when Australia would have had to run the risk of other Dominions competing in the money market. The loans being converted are £9,527,089 New South Wales; £2,000,000 Queensland; £2,977,800, South Australian; and £2,716,302 Western Australian.

Newspapers in their City columns give prominence to the operation. The “Morning Post” says: “A successful conversion seems assured in advance by reason of the terms offered.” The “Financial Times” says: “Commonwealth loans may now be ranked in the most desirable category of investments.” The “Daily Herald’s” Financial Editor says: “In view of the big investment demand for securities of this

kind, and of the recent improvement in Australia’s financial and commercial position, the loan is likely to be a success.

FAVOURABLE RECEPTION. [official wireless.] RUGBY, July 14. Under the Australian debt conversion operation, about £17,000,000 of Australian State debts will be replaced by a similar amount of new security of the Commonwealth, bearing four per cent interest. The stock will run for a maximum of 15 years, with the option of redemption after ten years’ issue. The price will be £99. “The Times” says: The loan will meet a good reception, because economic and financial affairs in Australia have undergone a marked improvement in the past 12 months. A fact of outstanding importance is the price of Australian products is now about 20 per cent, higher than a year ago. In the case of wooltops, the advance is over 30 per cent. The rise has not been brought about by any depreciation of currency, which has remained stable in terms of sterling throughout the period. FURTHER NEGOTIATIONS. (Recd. July 15, 11 a.m.) SYDNEY, July 15. “The Telegraph’s” Canberra correspondent says: Negotiations with London for the conversion of the full, amount of Australia’s 32,000,000 six per cent, optional stock were proceeding at a late hour last night. This followed the cabled announcement that £17,000,000 would be underwritten, probably at four pei* cent.