AUSTRALIAN LOANS.

Timaru Herald, Volume CXXIII, 28 April 1927, Page 9

AUSTRALIAN LOANS.

QUESTION OF SINKING FUNDS. By Cable —Press Association —Copyright. Australian and N.Z. Cable Association. (Received April' 27, 5.5 p.m.) LONDON, April 27 Mr McKell, in an interview, said he proposed submitting to the London financiers, a defence of past practice and a promise of future performance which lie beheved would ae tbe completed answer to the London critics Jn reference to the provision of sinking fund, Mr McKell said he was of opinion that New South Wales and Queensland, having accepted the principle of sinking funds in New York, it was impossible not to accept them similarly in London. It might consistently be contended that it was unnecessary to provide sinking funds against assets consistently appreciating in value and earning interest practically equivalent to the liability; nevertheless, New South Wales recognised London's demands, and proposed extending the existing sinking fund to all future loans.

COMMONWEALTH LOAN. UNDERWRITERS’ BIG SHARE. By Cable—7/cas Association —Copyright. Australian £nd N.Z. Cable Association. (Received April 27, 5.5 p.m.) LONDON, April 27. Tho “Morning Rost” commercial editor understands that the underwriters retain 60 per cent, of the Commonwealth loan, the result of which suggests the quick disappearance of any temporary discount, and should pave tho way for a successful New South Wales issue later, assum#.g the terms are satisfactory, and full information is given regarding the present position of the sinking fund arrangement.