SUCCESS OF LOAN CERTAIM

Taranaki Daily News, 17 December 1930, Page 7

SUCCESS OF LOAN CERTAIM

RESPONSE BY AUSTRALIANS

OVER £27,000,000 IN SIGHT

MARKET EFFECT ON STOCKS

ALL BONDS MOVE UPWARDS By Telegraph—Press Assn.—Copyright. Sydney, Dec. 15. The splendid last-minute response to the Commonwealth £28,000,000 loan had a reflex on the Stock Exchange. All issues of bonds were marked up and gains of two to twelve points recorded. The best advances were on long-dated 6 per cents. . . . It is understood that the early fears of note inflation caused, a fiuinber of the largest investors to hang back. This later was replaced by the, feeling that the best way to arrest inflation was, to ensure the success- of the loan. How-, ever, there was still an element of nervousness and caution, due to the uncertain political outlook tn, New South Wales as well as in the Federal sphere. Upwards of £27,000,000 is , in. sight, while a considerable number of holders of the former loan have not yet indicated whether, they intend to convert, but the majority are expected to do 6 °over 70,000 applications were received for bonds. When all advices are to hand the aggregate number is expected to be 100,000. The success of the loan is assured. “VICTORY FOR, SANE FINANCE.” TRIBUTE TO WORK OF MR. LYONS. London, Dec. 15. The Daily Telegraph in an editorial entitled “A, victory for sane finance,” explains the circumstances of the floating of the' loan and says it will long be° associated with the name of Mr. Lyons, whose fight for honest finance in the inner councils of his party has raised him to the position of a popular hero. The power of the Labour caucus in Australia has no parallel elsewhere and, in defying its authority Mr. Lyons ’tqok his political life in his hands. The avalanche of applications in the past few days is memorable proof of Australia’s resources and its carefulness for its financial honour. A political situation of the utmost complexity, however, remains. , .GRATITUDE OF GOVERNMENT. RADIO APPEAL WORKS WONDERS. Rec. 12.20 a.m. Canberra, Dec. 16. Mr. J. E. Fenton announced in the House of Representatives that the success of the loan; was definitely assured. He expected the full amount to be subscribed in a day or two. The loan would then be immediately 1 closed. Ths Government was grateful beyond measure . The radio appeals had worked wonders. '. '•' ? ' ’ BIG TURNOVER ON EXCHANGE. AVAILABLE STOCK SNAPPED UP. Rec. 9.30 p.m. Sydney, Dec. 16. All sections of Government securities reacted strongly to buying pressure on the Stock Exchange to-day as the result of the gratifying response to the Commonwealth redemption and conversion loan. Stock available was quickly snapped up and the loan market accordingly finished very firm. Prominent in the turnover were 5| per cent. 1941 and p per cent. 1937 stocky The total turnover at Sydney, apart from vestibule, business, aggregated £30,000.