£l00,000,000 LOAN

Wanganui Chronicle, Volume 85, Issue 221, 19 September 1941, Page 5

£l00,000,000 LOAN

NEW COMMONWEALTH ISSUE Canberra, Sept. 16 The Commonwealth Treasurer announced that a Commonwealth loan which will shortly be floated will, be of £100,000,000, of which £70,000,000 will be devoted to conversion of Commonwealth securities, and the remainder to war purposes. —U.P.A.

The issue of a local loan of £lOO,1 000.000, of which £70,000,000 is for conversion of outstanding loans and i £30.000,000 for war requirements, is lin accord with the Commonwealth i Government’s policy of endeavouring ' to carry on the war and meet other obligations without recourse to inflation. To repeat Mr. Fadden’s words i on this point: “Inflation will help the ; enemy.” The last Australian loan in | May was for £35,000.000, and £35,871,600 was subscribed by 56,350 sub- : scribers. Of this loan £17.000.000 was i for internal war purposes and £lO,- ; 000.000 for costs of war overseas, the i balance being for public vorkc. The | £10.000,000 above referred to was for | redemption of Australia's obligations I in respect of overseas war expendiI ture. The rate of interest of this £35,000.000 loan was 2t- per cent, for securities maturing 1946 and 35 p?i cent, for securities maturing 1950-56 These rates showed a reduction in the rate of interest on the short term ; portion of the loan of i per cent, on ' the rate for the previous internal loan.