MILLIONS OF CHEAP MONEY

Timaru Herald, Volume CXL, Issue 20283, 5 December 1935, Page 9

MILLIONS OF CHEAP MONEY

BRITAIN’S LOAN SUCCESSES RUSH FOR AMERICAN ISSUES LOWER INTEREST RATES PREVAIL British Official Wireless (Received December 4, 5.5 p.m.) RUGBY, December 3. The Treasury announcement of the flotation of two large Government borowing operations, totalling £300,000,000, on terms setting up a new record for cheap Government borrowing, which was made this morning gave much satisfaction to the gilt-edged section of the Stock Exchange this morning and leading Government issues were marked substantially higher. War loan, 31 per cents, were quoted at £lO6/5/-, representing a rise of one point. Consols, 21 per cent., rose by 11 to £BS/15/-. Conversion, 31 per cents, rose sths to £lO7/10/-, and funding fours rose Sths to £ll7/10/-. “The Daily Telegraph” says that there can be little doubt that the institutions connected with the money market will fully absorb the 1 per cent, bonds. The larger public will be attracted by the 21 per cent, funding loan, but to this also substantial subscriptions will certainly be forthcoming from banks, insurance companies and trustees. OPERATIONS IN U.S.A. STATE LOAN HANDSOMELY OVERSUBSCRIBED United Press Association—By deotrlo Telegraph—Copyright (Received December 4, 7.0 p.m.) NEW YORK, December 3. In announcing to-day that the 900,000,000 loan has been oversubscribed four and a half times, Mr Henry Morgenthau, Secretary to the Treasury, said: “Because of the ‘unsettled world condtiions,’ the Treasury wished to accumulate a large cash reserve." Asked if the Government anticipated war, Mr Morgenthau replied: “No, but I would say as long as things continue as they are in the world, the Treasury must operate on a twenty-four hour basis." BRITAIN’S RESPONSE LOAN SUBSCRIBED WITHIN AN HOUR United Press Association—By Electrlo Telegraph—Copyright , (Received December 5, 1.25 a.m.) LONDON, December 4. The subscription fists for £100,000,000 of Treasury Bonds closed within an hour.