FEDERAL FINANCE.

Waikato Times, Volume 96, Issue 15357, 4 October 1923, Page 5

FEDERAL FINANCE.

WAR LOAN CONVERSION. £7,500,000 RAISED IN LONDON. A SUBSTANTIAL DEFICIT. Australian and N.Z. Cable Assn. LONDON, October 2. Tho Australian Commonwealth is underwriting ■ £7,500,000 loan at 5 per cent, at 99. MELBOURNE, October 3.

Dr. Page states that of the war loan of £38,722,000 the amount of conversion and now subscriptions in tho recent campaign totalled £32,136,580. The deficit will be made up from the Treasury credit funds, but it has not yet been announced from which source the latter will be replenished.

GOOD RESPONSE EXPECTED. ADVANCE IN CREDIT. Australian and N.Z. Cable Assn. LONDON, October 2. The Morning Post says that although the market was scarcely prepared for the immediate issue of the Commonwealth loan for so large an amount, it seems highly probable that there will be a good response. We are glad to notice, among the objects of the loan, expenditure for settlement, which is suggestive and encouraging, and on which fuller information would be interesting. The Commonwealth's good credit promises to ensure the success of the loan.

The Daily Telegraph quotes the issue prices of previous loans, and adds: It will be seen that the credit of the Commonwealth has materially advanced since 1921. The Financial Times says the Imperial Conference and the prominence given to the problems of Empire development create a congenial atmosphere for loans. An interesting and new point in the prospectus is the sinking fund payment. The stock can be recommended unreservedly to those requiring high-class colonial security.