AUSTRALIA’S LOANS.

Hawera Star, Volume XLVIII, 30 December 1924, Page 7

AUSTRALIA’S LOANS.

: - ' HUGE CONYERSIONS. • £68.813,950 • NEXT YEAft/ . SYDnM, Dec. io. Huge as have beeri the loan transactions of the Federal Government during the present year, next year will witness transactions for tlie conversion of a : much greater • sum; representing the greatest- conversion operation ever undertaken by the Commonwealth. On December 15, 1925. £68.813,950 of per cent, stock arid hoiids, redeemable in - Australia, will mature. The Treasury will endeavour -to secure tlie continuance of the loan by means if conversion.: This loan was free of Federal incoriie tax. Since the Commonwealth and the States have agreed riot to issue any more tax-free loaris, next year’s conversion flotation will probably be issued at 5| per; cent. Mr. J, R. Collins, Secretary of the. Treasury, states that as this will he the largest operation of its kind yet attempted plans for handling it have beeri under considera-tion-for some time.. , V-, “We are confident of a successful result.’ ’ he said. ‘‘but details of conditions of issue cannot be announced at present.” . The large redemption arid conversion loaris of 1923 and 1924 vided for the continuation of a 5 per. cent war loan of £38.693.050. which matured on September 15. 1923, and for meeting war gratuities/.which matured on May 31, 1924, find totalled £19,606,428. / ■; : Of the £38,693,050 due to holders in the v s per cent. war loan, £23,836,824 was converted into: new securities, leaving a bailarice of £14,856,226 to be*redeeiried,. Towards the payment of that ■balance £8,748,999 in new cash was received from the public, leaving a shortage on the whole loan operation of £6,106,227. "which was met out of balances in the Treasury. One- indebtedness of £19,606,428 in resnect of .war gratuities £3,931,092 waf converted into, new .holdings of inscribed stock and hearer bondS. The balance of war gratuity indebtedness which the Treasurer was called upon to redeem after allowing for the conversions whs £15,675,336, of which £7,702,590 was provided by new cash received from: the public and £6,000,000 was subscribed by the note issue department of the Commonwealth' Bank. The £6,000.00 was used to pay off the war - gratuity indebtedness of the Treasury to the; banks. -These operations left a shortage of £1,792,746 on the war gratuity transactions "of ; the year, which wae found out of balances j-n the Treasury.