AUSTRALIAN WAR DEBT.

New Zealand Herald, Volume LXIV, Issue 19761, 7 October 1927, Page 9

AUSTRALIAN WAR DEBT.

NEW CONVERSION LOAN. OFFER OF 5} PER CENT. AT 98*. A. and N.Z. CANBERRA, Oct. 6. The conversion loan to provide for war debt maturing on December 15 next has been . announced by the Federal Treasurer, Dr Earle Page. The new stock, which was' open for subscription to-day, will bear interest at 54 per cent The price of issue is 984 per cent. The loan was originally for £39,000.000. but £3,000,000 were redeemed and cancelled by the use of the National Debt Sinking Fund According to the latest published state ments, the maturing debt comprises £30,339,840 of per cent, stock and £9.691,503 of 5 per cent, stock, a total of £40,031 ~543, but purchase? with sink ing funds have reduced the amount to be covered to £36,000,000 There has been a genera] anticipation that efforts would be made to convert the debt on a 5| per cent basis, and as this was sub stantially lower than the market for Commonwealth bonds, the Treasury has been a strong buyer for several months, the use of its cash resources serving the dual purpose of reducing the amount to be converted and of bringing market terms nearer to the desired basis for the major operations Adverse circumstances —the general financial stringency uncer taintv regarding the ha. /est prospects and other depressing influences —have conspired to prevent the achievement of its purpose, for lately there has been evidence of the market weakening The net prices of 5i per cent Commonwealth bonds, excluding the December maturities, were recently from £9B 16s lOd to £99 9s 4d, the average being £99 Is and the aver age return £5 8s 10d Two years ago, a conversion of £67.000,000 was effected on a basis of per nt. at par. approximately the rate at which money could then be borrowed from New York or London TV terms of the Commonwealth's recent loan in New York—s per cent, at 98— established per cent as the net cost of overseas money, but owing to condi tions in the domestic market, the Gov ernment has had to ffer the stock it 98| per cent The full effect of the dis count cannot Oe calcuMed in the absence of information regarding the term of the new stock The 1925 conversion offered ootions of 6, 11 and 16 years. The effective yield on a 5J per cent stock at 984. including redemption in 16 years, would be about £5 8s; if the term is as long as 30 years, as in th r case of the New York loan, the return would be about £5 7s per cent The new stock will, no doubt, be subject to Federal taxation RECENT AMERICAN ISSUE. TRANSFERENCE TO LONDON. (Received October 6, 5.30 p.m.) A. and N.Z LONDON, Oct. 6. With reference to the recent complaints by bankers in New' York regarding the Australian loan flotations m America, and their opinion that a wider field should be sought for the loans, it is understood that an important official opinion on the matter has been forwarded to the Prime Minister of Australia, Mr. Bruce, from London. It is of interest to note that the whole proceeds of the last New York flotation have now been transferred to London, where it is asked whether the recent estimate that Australia will shortly require a further loan of £18,000,000, foreshadows an early approach either to London or to New York, or to both markets. It is understood that there is no probability of such a loan before November, if then. SYDNEY WOOL SALES. COMPETITION VERY KEEN. (Received October 6, 10.56 p.m.) A. and N.Z. SYDNEY. Oct. 6. At the Sydney wool sales to-day competition was particularly keen for all better descriptions at prices equal to the best rates of the series. The demand for faulty wools was irregular and prices at times were easier. Greasy 'Merino sold to 30d, which was the top price of the series. KAURI GUM PRICES. CONTROL BOARD'S RETURN. The following return of prices secured by it for gum in the past fortnight is supplied by the Kauri Gum Control Board: — White Gum.—Seven-eighths scraped, 145s to 160s per cwt.; three-quarter scraped, 135s to 140s; ordinary, 75s to 85s; good ordinary, 90s to 100s; washed nuts, 60s to 755; chips and dust, 25s to 40s. Black Gum.—Rescraped, 160s to 180s; washed steel, 80s to 90s; ordinary, 34s to 425; good mixed, 60s; good sifted chips, 22s to 255; chips and dust, 14s to 16s. Chalk.—Good, 32s to 355; poor, 26s to 28sWHEAT IN VICTORIA. ESTIMATE OF SEASON'S YIELD. (Reeceived October 6, 5.5 p.m.) A. and N.Z. MELBOURNE, Oct. 6. It is estimated this season's wheat harvest yield will be 42,500.000 bushels, representing 14 bushels to the acre. AMERICAN STERLING EXCHANGE. HIGHEST POINT FOR YEAR. A and N.Z. NEW YORK, Oct. 5. Sterling to-day reached its highest point foi the year at 4 dollars 86J cents, to the Eound. This is the highest since Deeemer, 1914 DAIRY PRODUCE PRICES. LONDON MARKET VALUES. The New Zealand Loan and Mercantile Agency Company, Limited, has received the following cablegram from its London house, dated October s:—New Zealand, butter, 178s to 182s (last week, 182s to 184s); market slow New Zealand cheese, 104s to 106s (last week 99s to 101s) ; market quiet. JERSEY CATTLE FAIR. GOOD PRICES REALISED. [BY TELEGRAPH. —PRESS ASSOCIATION.] PALMEHSTON NORTH Thursday At the Manawatu Jersey bull and heifer fair to-day the principals of the Massey 'Agricultural College purchased two yearling bulls at 37A guineas and 40 guineas respectively The top prices were realised by cattle offered by Mr R L. Horn, of Ohau, who secured 100 guineas each from a Canterbury purchaser for two yearling heifers." TALLOW MARKET. Dalgety and Company, Limited, report having received the following cablegram from their London house, dated October s:—Tallow: 804 casks were offered, and 77 per cent. sold. Mutton: Fino was unchanged. other descriptions 6d higher. Mutton: Fine, 375; mixed, good, 365; inI ferior, 31s fed.