THE AUSTRALIAN LOAN.

New Zealand Herald, Volume LXVIII, Issue 20761, 2 January 1931, Page 5

THE AUSTRALIAN LOAN.

LARGE CASH SUBSCRIPTION. PREFERENCE FOR SHORT TERM. The complete result of the campaign in Australia for the cash and conversion loan of .£'23.000,000 to provide for the redemption of maturing Commonwealth and State debts was announced in Canberra last week. The amount required was oversubscribed by £1,750,000. ]folders of maturing securities were invitod to convert into tho new stock and cash subscriptions were invited, iri both cases with the choice of three currencies, with varying rates of interest. Nearly 85 per cent, of the total subscription was for the shortest, term, two years. Tho applications were classified as follows : Maturing Intercut. Amount. Dec. 15. IVr Cent. ir,.;o . li X 178.010 io jo .. fit •1.:!25.:*0 I'.J.jO .. .. 5i - "i.'-'-'O Total .' ~J:29,750,280 Of the total subscribed, £18,918,830 represented cash applications by 103,60J subscribers, while £10,831,450 was converted by 13,403 subscribers. The unusually high percentage of cash applications is ascribed to the magnificent response made by the public to Mr. Lyons appeal when the success of tho loan was in the balance. The following table shows tho amount subscribed in the various States:— State. Applications. Amount. Victoria 55,018 1'13.(>-18,IG0 New South Wales . . 32,<112 Queensland .. .. 11,597 9-12,330 South Australia .. 8.79.'! £',309,910 Western Australia .. 4.945 875.030 Tasmania 4,C10 852,990 Total .. .. 117,005 £29,750,280 Tho maturing debt included £19,778,600 of Commonwealth 6 pet- cent, stock. It was distributed among 33,110 holders. Ono of the most striking features of the success of the loan was the tremendous number of small subscriptions, particularly in its closing stages. On two previous occasions only—during the war—has tho number of subscriptions in a Commonwealth loan been greater. It was explained that tho amount, oversubscribed can bn used only for the redemption of Commonwealth and State securities. It. is not available for new works, in either tho Commonwealth or tho States.