MONEY FOR AUSTRALIA.

Taranaki Daily News, 21 July 1925, Page 7

MONEY FOR AUSTRALIA.

TWENTY MILLION LOAN DETAILS OF THE ISSUE. WHY NEW YORK WAS USED. By Telegraph.—Press Assn.—Copyright. Received July 20, 7.5 p.m. Melbourne, July 20. The Federal Treasurer, in an official statement, said that the new loan was of £120,000,000 at 99J, carrying five per cent, interest, of which £'5,000,000 will be floated in London and £15,000,000 in New York. The London portion is redeemable in fifty years, with the option of redeeming on three months’ notice any time after thirty years. The New York portion is redeemable in thirty years, with the option of redeeming at the end of twenty-seven years. It is anticipated the average interest for the whole period will be £5 Is Bd. It is expected the expenses of flotation will be practically the same in the two capitals. The Treasurer explains that the necessity for appealing to the American market is due to the London market not being capable of immediately absorbing all the flotations offering. The loan council was most reluctant to leave the London market, which has served Australia so well, but after an exhaustive enquiry it acted upon the advice of the best London financial authorities. The Treasurer added that it seemed manifest that had a large sum been placed in London the favourable terms secured would not have been obtainable. COMMENT IN LONDON. Received July 20, 8 p.m. London, July 20. The newspapers give prominence to the Australian lean. The Financial News emphasises the sinking fund clauses. : The Financial Times, recalling the trustee security, says that the reception will doubtless be favourably affected by the change for the better in the monetary conditions. THE ISSUE IN NEW YORK. DETAILS ANNOUNCED. Received July 20, 8 p.m. New York, July 19. The Morgan company announces further terms of the Australian loan. The subscription books will be opened at the Morgan office at 10 a.m. on Monday. The bonds will be dated July 17, 1927, and will mature on July 18, 1955. They are not redeemable prior to July 15, 1952, and are callable on or after the latter date at one hundred and interest. They are to be offered at ninety-nine and a half and interest. Eight firms are associated with the Morgan company in underwriting the loan. They are the First National Bank of New York, the National City Company, the Guaranty Trust Company, the Bankers’ Trust Company, the Forbes Company, the Lee Higginson Company, the Brown Brothers Company and the Kidder Peabody Company. The loan is the largest floated in New York since the hundred million franc French loan last November.