SUCCESS OF LOAN APPEAL.

Timaru Herald, Volume CXXXIII, Issue 18762, 29 December 1930, Page 9

SUCCESS OF LOAN APPEAL.

Australia’s Fine Showing. LONDON PRESS COMMENT. United Press Association—By Electric Telegraph—Copyr' (Received December 28, 5.5 p.m.) LONDON, December 27. “The Finance Times,” in an editorial, welcomed the Australian loan result, as proof that investors are willing to smooth the way towards the unpleasant task of reducing the cost of production. The paper says: “The Premiers’ Conference resolutions are still unImplemented, but if the workers are willing to match investors’ action, it will be a long step forward. AUSTRALIA’S GREAT RESPONSE. FAITH IN OWN COUNTRY. SYDNEY, December 18. Just when it seemed that Australia would fail to respond to the efforts of the Federal Government to raise a loan of £28,000,000 there developed in Victoria an enthusiasm that has since spread all over the Commonwealth with surprising results. It seemed suddenly to dawn upon the people that the loan would be a failure, and from that time on the money simply poured in, demonstrating to the world the undoubted faith that Australian people had in their own country. To adopt an Americanism, they have “told the world.” Not since the war have the people been so united for the common good. The final rush exceeded all expectations and so surprised the Commonwealth Bank officials that they were unprepared and on Monday last, after working at high pressure during the whole of the week-end they were unable to annouhee the amount that had been subscribed. It was felt, nevertheless, that the amount would be over-sub-scribed. Whether this was to be an actual lact or not, the result was sufficient answer to the croakers who had talked about the bankruptcy of Australia.

Of the £28,000,000 required £20.000,000 was for redemption of war loans raised when the country was moved by the utmost enthusiasm—when the young manhood was giving its life blood the rest of the people their cosh. To ensure the success of the loan it was essential that the holders of bonds should convert them into the new issue. At first the bondholders were shy about taking up the offer, and this caused great concern to the authorities, who could see no way of meeting the country’s obligations. Seemingly the bondholders had forgotten about their holdings, for once the publicity was properly developed they came forward loyally, and a great deal' of the magnificent total is due to them. The balance of the loan is for the States and the Commonwealth, in accordance with the proportion laid down by the Commonwealth Loan Council, and will be used for public works, which should go a long way in Ihe direction of relieving unemployment. The r%'st remarkable feature of the campaign has been the response by the small investors, thousands of whom have invested as little as £lO. Tt was not until the loan was lagging that the national broadcasting services were invited to assist. The Australian Broadcasting Company set out to raise £ un o.ooo. and after five days it seemed that this objective would be realised. The method was to appeal over the air for subscribers to the loan, and then to invite people to telephone co Ihe studios the amount they were prepared to contribute. Evidently Queensland people believe that the better the day the better the deed, for on Sunday last they promised £54,000 —a record for any one station for a single day. Most of the subscriptions that were announced over the air were for small amounts of between £lO and £SO, but the response was none the less gratifying, and, let it be said, surprising. Up to Monday night last it was estimated that 70,000 applicants would be received before the loan was closed.

Employers have played their part nobly in assisting the loan to success. They have made it easy for the em plovees to take out bonds for small amounts. Sums sufficient to buy bonds have been advanced, and the bonds may be paid for in instalments extending over 20 weeks. Last Friday was a “day for Australia.” Many of the big trading firms gave a promise that the whole of their takings on that day would be invested in loan bonds. The result was that in Sydney there was a record shopping day. The exact result is not yet known, but it Is estimated that more than £150,000 will be subscribed as a result of this special and novel effort. Certainly it was months since such vast crowds were seen in Sydne; ’s shopping areas. Experts say that the world has been waiting for such a gesture as Australia has herself provided. It is to be hoped that it is the beginning of a new era that will bring greater joy to a troubled people. Australians have at least shown the world that they are able and willing to help themselves