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COMMONWEALTH LOAN

CASH LISTS CtOSED BIG SAVING IN INTEREST (Received July 19. 5.5 p.m.) LONDON. July 18 Cash applications for the Commonwealth £17,000,000 loan have closed. No information as to the amount subscribed is available.

The amount of 6 per cent stock over which the Commonwealth Government holds optional conversional rights is £32,221,192. Of this, £15,000,000 is Commonwealth stock. The rest is held by the State as follows:—New South Wales, £9,527,090; Queensland, £2,000,000; South Australia, £2,977,800; Western Australia, £2,716,302. It is proposed to convert only the £17,000,000 worth of stock held on behalf of the States, the Commonwealth retaining the right to proceed with tho conversion of its own stock as tho opportunity arises. It is known that Mr. S. M. Bruce, Australian Minister in London, has been negotiating for a long-term conversion. The Prime Minister, Mr. J. A. Lyons, stated recently that the advantage of long-term conversion was fully recognised, and it was contemplated that future conversions of optional maturity would be effected by that method. Tho reduction of interest from 6 to 4 per cent on £17,000,000 will save about £400,000 a year in Australian currency in interest.

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Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/NZH19330720.2.72

Bibliographic details

New Zealand Herald, Volume LXX, Issue 21548, 20 July 1933, Page 11

Word Count
190

COMMONWEALTH LOAN New Zealand Herald, Volume LXX, Issue 21548, 20 July 1933, Page 11

COMMONWEALTH LOAN New Zealand Herald, Volume LXX, Issue 21548, 20 July 1933, Page 11