LONDON MONEY WOOL MARKET

Evening Post, Volume CXIV, Issue 90, 13 October 1932, Page 14

LONDON MONEY

WOOL MARKET

lIEW SOUTH WALES LOAN

CONVERSION ALLOTMENX

fynited, Press Association—By Electric Telegraph—Copyright. . (Received 13th October, 11.30 a.m.) . LONDON, 12th October. • Converters --of the New South Wales Joan received allotments }j» full. Cash subseribsrs receivH 11% per cent. 'f>i. the amounts they applied for. '. Holders amounting to 63 per cent, concerted. ■,■'■" ; ; Cash applications were over £39,000,000. Australian financial circles here regard the.conversion as more than satisfactory, seeing that there was a higher, percentage of the loan; converted than is usual in the case of Dominion loans, although it is suggested in gome quarters that the conversion would have been larger had it been kept open for longer than a week. But authorities emphasise the fact, that it;would be'contrary to the London custom to exceed a week. Dealings in new loan opened at 2^4 to 2% premium. . -

The loan was for £13,000,000; issue price £97 10s, rate of interest 3% per cent.; maturing in,five years. It was virtually an operation enabling holders of New South Wales, stock to convert into a Commonwealth Government loan, • The actual amount of the loan was £12,360,959, of which £11,363,859 was for, conversion. Excluding exchange, the new1 loan is expected to effect a saving of interest to Australia of £262,000 per annum. It is reported that, provided the London money market remains stable, the Commonwealth Government proposes to launch a major funding operation there next 3rear. It is understood that the Federal Government also .contemplates' launching a loan involving the conversion of more than £82,000,000. It is hoped - that any future conversions should be issued at par wittL ah interest rate1 of 4 per cent. The annual saving on these terms would be about £2,000,000.

RATES MAINTAINED

:; . (Received 13th October, 12.45; p.m.) ', LONDON, 12th October. Offerings at thetwpol sales,to-day were : .7933 bales, including 3176 New Zealand. About 3771 were sold. There was good '. Yorkshire and Continental competition, • and opening rates were firmly maintained. Sales included New Zealand' crossbred, ,"DC over D," 7%d average; • halfbred ■ iambs' slipe, "Waitaki," 12% d.