AUSTRALIAN LOANS

Wanganui Chronicle, Volume 79, Issue 13, 16 January 1936, Page 3

AUSTRALIAN LOANS

OPERATIONS OF LOAN COUNCIL. CANBERRA, Jan. 1. Owing to the improvement in industry and Government revenues, as well as a substantial decline in the registrations of unemployed, it was proposed at the November meeting of the Loan Council —which represents the Federal and six State Governments —that there should be a reduction in the year ’s borrowing programme. At the beginning of the financial year —June I—it was decided to raise £3l millions in the local market, of which £26 millions (Australian currency, 25 per cent, off sterling) was for the twelve months’ public works programme and the balance for meeting Stale deficits. The first appeal to the market for 121 millions was made some months ago and an offer of 3 per cent., with ron< «. • sions, did not induce a nnvpr subscription. The Commonwealth Bank Board—the Government banking authority—raised objections to the issue of Treasury Bills or to a. loan at the present time greater than £7,500.000. It was decided to invite subscriptions for that amount at 2J per cent, for £99 15s, over a term of 14 years. Bank deposits have been reduced and money has become some what dearer, but when the export season is in full swing during the next few weeks the nosition will imnrovp.