AUSTRALIAN LOAN

Nelson Evening Mail, Volume LVI, 20 July 1925, Page 5

AUSTRALIAN LOAN

UN HER WRITING COMPLETED

fßv Electric Telegraph.—Copyright.; (Outer's Telegram*.;

LONDON, July 18,

The Commonwealth loan underwriting is completed. The prospectus will be advertised on Monday, the list closing on 22nd. The last instalment is payable on 4th October. A full half year’s interest will he paid on Ist January. Though threequarters of the total loan will be issued in New Y r ork, city circles here are relieved to learn that the whole transaction was arranged through London. It is anticipated that in accordance with precedent the New York portion will eventually be absorbed. NEW ’YORK, July 17.

The New Y T ork Times financial editor, commenting on the announcement of the Australian loan, says: “The five per cent, rate obtained may be considered a tribute to the credit and standing cf the Commonwealth. It is the first time a foreign loan has been floated in New York as so low a rate of interest since the war. Bankers place the Australian issue in the same category with Canadian bonds which are regarded as .prime securities here. The loan is another evidence of the co-operation between American and British financial interests to maintain stable conditions following on the resumption of the gold standard in Britain, and it is expected will be followed by other British colonial borrowings here now that the way has been opened.” The Times emphasises the commanding position the United States has attained as a creditor nation since the war. A number of important banking houses in New Y r oak and small groups throughout the country will be associated with the Morgan Company in the Australian -offering. The Herald, in a tribute, says a feature which is expected to make the Australian bond issue popular with investors is that they are not redeemable in less than 25 years.