AUSTRALIAN LOAN.

Hokitika Guardian, 21 July 1925, Page 3

AUSTRALIAN LOAN.

f Australia & N.Z. Cable Association.]

THE REASONS. MELBOURNE, July JO.

Dr Earl Page, Federal Treasurer, in an official statement regarding the new loan of twenty million, states it is being issued at 00i carrying five per cent interest, whereof live million is being floated in London, and lilteen million in New York. The London portion is redeemable in iilty years, the option of redeeming on three months notice at any time after thirty years. The New York portion will he redeemable in thirty years, with the option of redeeming fit the end »l twenty-seven years. It is anticipated that the average interest over the whole period will be M Is Sd per cent It is expected that the expenses of flotation will bo practically the same m the two capitals. The Treasurer explains that the necessity for appealing to the American market is due to the London market not being capable of immediately absorbing all the loan dotations offering, The Loan Council was most reluctant to leave the London market, which had served Australia so well lutt, after an exhaustive enquiry, it had acted upon the advice of the best London finnnoial authorities. The Treasurer added that it seemed manifest that had n large sum. been placed in London the favourable terms now secured would not have been obtainable.

DETAILS OF NEW YORK ISSUI' NEAV YORK, July 19.

The J. P. Moreau toy announces further details ns to the terms of the Australian loan. The subscription books are being opened at the Morgan office at 10 a.in. on July 20th. ''f bonds are dated July loth, 1920, 1 hey mature on July ISth, 1955. They are not redeemable prior lo July loth, 1952. They are callable on or alter the latter'date at one hundred with interest. The bonds are offered at 99, and interest. flight Arms are associated with -Morgans” in the underwriting, vir«., the First National Hank of New York, the National City Coy., the Guaranty Trust Coy., Forbes and Cov., bee, 11 igginson and Coy., Brown Bros., and Kidder and the Peabody Coy. This loan is the largest floated in New- York since, the hundred million dollar French loan last November.

IN THE COMMONS. LONDON, July 20

In the Mouse of Commons replying to Mr Kenworthv who asked if it were not a bad thing for the Empire to place the Australian loan in New York, Mr Guinness said it would not be desirable that the Treasury should take action in such a case. They could not lend abroad more than the export surplus, otherwise they would soon be landed in financial difficulties. LONDON PRESS COMMENT. LONDON. July 20.

The newspapers give prominence to the Australian loan. The " financial News” emphasises the sinking turn!

clauses. The 11 Financial Times ” recalling trustee security, says the loan’s reception is doubtless favourably affected by a charge for the latter in the monetary conditions.

AUSTRALIAN LOAN OYER-SUB SCRIBED.

NEW YORK. July 20

The Australian Tjoa.ii was over-sub-scribed within an hour after the books were opened.