COMPULSORY CONVERSION.

New Zealand Herald, Volume LXVIII, Issue 20977, 14 September 1931, Page 9

COMPULSORY CONVERSION.

DISSENTERS IN AUSTRALIA'* CRITICISM OF POLICY* "AN ERROR IN TACTICS." By Telegraph—Press Association—Copyright. (Received September 13, 5.5 p.m.) LONDON, Sept. 12. The Economist says it is impossible to congratulate the Australian Loan Council on forcing dissenters to the conversion loan scheme to convert. More far-seeing statesmen would have reflected that such compulsion would cheapen the patriotic sacrifices of the groat majority and tarnish the credit of Australia. The Commonwealth and the States have laid themselves open to the charge of a breach of contract, without even an im. mediate financial advantage. If the latest proposal permits the States to sell bonds - over the counter it means 4 per cent. in« . terest, and the prospects of obtaining tha money are anything but bright. If on the other hand it is hoped to raise substantial sums in London and New York the treatment of the minority of internal bondholders, apart from the present unfavourable conditions, would appear 4 doubly unfortunate error in tactics. ADVANCES TO STATES. BANKS SEEK INFORMATION. PREMIERS HOPE FOR £17,000,000. (Received September 13, 5.5 p.m.) MELBOURNE, Sept. 13. The chairman of the Commonwealth Bank, Sir Robert Gibson, in a letter to the Premiers' Conference, states that in view of the difficult financial position en* visaged by the banks further information is required from the Governments before the banks can be committed to further; assistance. The conference was adjourned. It is believed that the bankers may. grant £17,000,000, including £5,000,000 for works and £3,000,000 for the wheat farmers.