AUSTRALIAN FUNDS.

New Zealand Herald, Volume LXVII, Issue 20618, 17 July 1930, Page 11

AUSTRALIAN FUNDS.

MORE BILLS IN LONDON.

PRIVATE ISSUE OF, £5,000,000.

DISCOUNT OF 4 PER CENT.

By Telegraph—Press Association—Copyright. (Received July 16. 11.15 p.m.) LONDON. July 10.

Commonwealth hills amounting to £5,000,000, dated July 18, and maturing on December 13, have been placed privately in London at 4 per cent, discount. Subsequent transactions were at 3| per cent, discount.

Tile News-Chronicle expresses the opinion that whether this forecasts longterm borrowing remains to be seen, but the terms are fairly stiff, the current rate of British Treasury bills being 2 5-16 per cent, discount, and of bank bills 2g per cent.

The operation places a largo sum at Australia's disposal, says tho paper. It follows tho announcement of the calling of a conference to discuss the pooling of the funds of Australian banks held in London, giving tho Commonwealth Government the first call on them.

Two issues of Treasury bills were mado by the Commonwealth in London last year. Tenders were invited in August for £5,000,000 of hills, with a currency of 12 months, tho bills being repayable on September 2, 1930. Applications were received for £6,180,C00, and allotments wore made at an average discount of £6 3s per cent., the effective rate of interest on the proceeds being £6 lis per cent. Bank rate was then 6 per cent. At the end of November, on the eve of the reduction in bank rate to per cent., £5,000,000 of bills, payable on June 30, were placed at £5 7s 6d per cent., tho effective interest, according to a statement by the Federal Treasurer being £5 lis per cent. It was recently stated that part of the gold recently shipped to London had been used to meet these bills on their maturity at the end of last month.