FEDERAL FINANCE

Otago Daily Times, Issue 20942, 4 February 1930, Page 9

FEDERAL FINANCE

THE CONVERSION LOAN. ANNOUNCEMENT OF TERMS. (United Press Association.) (By Electric Telegraph—Copyright.) SYDNEY, February 3. The tSommouwealth Government has announced the terms of the conversion loan of £10,600,000, which is falling due on March 15. The terms are 6 per cent, at par with a currency of seven years. The National Debt Commission will provide out of sinking fund £1,100,000, leaving £0,500,000 to be provided tor. The holders of the 6 per cent, loan of £60,000,000 maturing on December next will also have an opportunity to convert. A CONFERENCE OF LEADERS. FINANCIAL POSITION GRAVE. SYDNEY, February 3. A conference was held during the week-end between the Prime Minister (Mr Scullin) the Federal .Treasurer (Mr Theodore), the Premier (Mr Bavin), and the State Treasurer (Mr Stevens), concerning the grave financial position of New South Wales, which it was stated was due largely to the prolonged disastrous coal dispute and the serious decline in wool prices. The discussions were held in private. Mr Bavin stated afterwards that the State’s difficulty was in obtaining loan money for a continuance of public works. If money for this purpose could not be obtained drastic retrenchment would have to be considered. Finality; however, was not reached. The Prime Minister had emphasised the desirability of finding a settlement of the coal dispute as an incentive to investment in loan issues and a restoration of confidence in Australia, Mr Scullin described the whole problem of obtaining finance for all the States as very serious. The conference has not concluded. STATEMENT BY MR BAVIN. UNDUE PESSIMISM DEPRECATED. SYDNEY, February 3. (Received Feb. 3, at 11 p.m.) The Prime Minister and Mr Bavin had a further talk to-day .over the financial position, and Mr Scullin later made the statement that while the position of the Commonwealth as a whole was admittedly difficult it would not 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.