AUSTRALIAN FINANCE.

New Zealand Herald, Volume LXVII, Issue 20480, 4 February 1930, Page 11

AUSTRALIAN FINANCE.

STATES' DIFFICULTIES.

INDUSTRIAL UPHEAVAL.

GRAVE POSITION CREATED.

LEADERS IN CONFERENCE.

By Telegraph—Press Association— Copyright

(Received February 3, 11.15 p.m.)

SYDNEY, Feb. 3

A conference was held at the week-end between the Prime Minister, Mr. J. H. Scullin. the Federal Treasurer, Mr. E. G. Theodore, the Premier of New South Wales, Mr. T. R. Bavin, and the Treasurer of Now South Wales, Mr. B. S. B. Stevens, about the grave financial position of New South Wales. Largely this is due to the prolonged and disastrous coalmining dispute, -and the serious decline in the price of wool.

The discussions were held in private. Mr.' Bavin stated afterwards that the difficulty of New South Wales was to obtain loan money for the continuance of public works. If -the money for that purpose could not be obtained drastic retrenchment would have to be considered. However, finality had not been reached. The Prime Minister had emphasised the desirability of securing a settlement of the coalmining dispute as an incentive to investment in loan issues and to the restoration of confidence in Australia.

Mr. Scyllin described the whole prob lem of obtaining finance for all the Stales as very serious.

After a further tails with the Prime Minister, Mr. Bavin stated that while the position of the Commonwealth as a whole admittedly was difficult it would nob be> improved by undue pessimism. He had absolute confidence in the resources of Australia and its powers of recuperation Therefore he counselled the community not to view, the outlook through dark glasses; A message from Canberra says the cus toms receipts fell off in every State last month. The total, £>5,371,000, was more than £250,000 less than in. January, 1929. The collections in the past seven months, however, amounting to £26,486,000 show an increase of £1,879,000 on the equivalent period of the preceding year.

COMMONWEALTH LOAN.

TERMS OF CONVERSION. SIX PER CENT. AT PAR. SYDNEY, Feb. 3. The Commonwealth Government has announced the terms of the conversion loan to meet the debt of approximately £10,600,000 which falls due on March 16. The maturing stock carries 6 per cent interest and holders are invited to accept in exchange 6 per cent, stgck, at par, with a currency of seven years. The National Debt Commission will provide out of the sinking fund £1,100,000, leaving £9,500,000 to be provided for. The holders of the 6 per cent, loan of £60,000,000, which will mature on Decern!*# 15, will also have an opportunity to convert their holdings into the present conversion issue.-r '- ~ " *

The last conversion loan issued in Australia was .announced on June 7 Z 1928, to meet a 5 per cent, debt of £21,000,000 maturing. in the following September. The Government then offered per cent, stock at 98£ with currencies of. seven or 14 years, giving net returns of £5 10s 3d and £5 8s Id per cent, respectively. Applications amounted to £21,780,000, including. £8,956,000 of new money. The shorter term was the more popular, the applications in that category amounting to £18,067,000.

Last November a loan for new money was issued, £10,000,000 of stock being offered at 98, with a currency -of five years. Tho net return was £5 14s 4d per cent. Subscriptions amounted to £7,766,210, the balance being furnished by the underwriters.