AUSTRALIAN LOAN.

Hokitika Guardian, 20 July 1925, Page 3

AUSTRALIAN LOAN.

[Australia A N.Z. Cable Association.] LONDON, July 18.. A Inter message ’states that the -Morgan Company has announced tho purchase of seventy-one million dollars worth of gold bonds from the Commonwealth of Australia. They are thirty-five percent bounds and will be offered publicly on July 20. NEW YORK, July 17. The “ New York Times ” financial editor, commenting on the announcement of the Australian loan says:— The fire j>er cent rnte obtained may be considered a tribute to the credit and standing of the Commonwealth. It is the first time that a foreign loan has been floated in New York at so low a rate of interest since the war. The hankers place the Australian issue in the same category with Canadian bonds, which are regarded as prime securities hero. The loan is another evidence of co-operation between the American and llrilish financial interests to maintain stable conditions following on the resumption of fho gold standard in Britain, and it is expected to he followed by other British colonial borrowings lie re, now that the way has been opened.” The “ Times ” also emphasises the commanding position which the United States hits attained as a creditor nation since the war.

It adds that a number of important hanking houses in New York and small groups throughout the country will bo associated with the Morgan Company jii the Australian offering. The “ Herald-Tribune ” says that a. feature which is expected to make the Australian bond issue popular with the vesiors is that they are not redeemable in less than 25 years.

UNDER WRITING COMPLETED. (Received this day at 8 a. in.) LONDON. July 18. Commonwealth Loan underwriting is completed and the prospectus will he advertised on Monday, the list closing on the 22nd. The last instalment is payable on October Ith. A full half year's interest will he paid on January Ist. Though three-quarters of the total loan will he issued in New York city circles here are relieved to learn the whole transaction was arranged through London. It is anticipated in accordance with the precedent that the New York portion will eventually he absorbed in London.