AUSTRALIAN LOAN

Manawatu Standard, Volume LII, Issue 260, 3 October 1932, Page 8

AUSTRALIAN LOAN

3 P.M. EDITION .

TERMS ANNOUNCED. (United Press Association—-By Electric Telegraph —Copyright.) Received October 3, 11.15 a.m. LONDON, Oct. 2. The terms of the £13,000,000 Commonwealth Joan are that it will be issued at 3f per cent, at £97 10s, the term being five years. It is being underwritten on October 3 and the prospectus will be issued on October 4.

Mr Bruce stated that it was a perfectly fair and just arrangement, compatible with the ruling rates for first class investments, and the general trend of cheap money. The conversion gives Australia great relief from her external debt burden. Similarly it is a fair and equitable arrangement towards the British investor who provided the money towards Australia’s development. The Daily Telegraph’s financial editor says that the yield will he somewhat over 81s per Cent. He advises the holders to oonvert because it will bo exchanging a New South Wales security for one backed by the Commonwealth’s resources. >

LENGTHY NEGOTIATIONS. Received October 3, 1.35 p.m. LONDON, Oct. 2. The negotiations for the New South Wales conversion lasted longer than any Australian loan for many years. Mr Bruce should have gone to Geneva on September 24 with the terms completed. Instead, he spent the whole of last week in loan interviews. He had several long telephonic communications with Mr J. A. Lyons, the Prime Minister of Australia, the last occurring to-day. One of the big difficulties during the prolonged negotiations has been that Press messages from Australia—several of these demanding more favourable terms than had ever been forecast —that appeared in the British Press were both inopportune and embarrassing. Mr Bruce had to appeal once or twice for their suppression at this end to prevent their appearance in the Press which _ might have prejudiced the negotiations.