CUT IN INTEREST

Hokitika Guardian, 26 May 1931, Page 6

CUT IN INTEREST

JN AUSTRALIA

(Australian Press Association.)

MELBOURNE, May 25The Federal Loan Council Committee has recommended the Loan Council, which is now sitting at Melbourne, to invite the Australian bondholders to convert at three and n-half or four per cent. It is emphasised "that five hundred millions pounds’ worth of Government bonds are held in Australia, and consequently, if the majority of the bondholders could be induced to acquiesce ia such! conversion, legislation could then he introduced to compel the remainder to. fall into lino. The hope is expressed once the rate interest has been reduced and the finances of the country put on a sound basis by an all round cut as ha s been outlined in earlier messages, there was a favourable prospect of the Knglish 'bondholders being willing also to convert. on the same basis. WOULD HELP AUSTRALIA. (Received this day at 9.2.> a.m) MELBOURNE. May 2G. Apparently all Premiers are convinced that a reduction of interest would help Australia a long way on the road to re-habilitation, and though Air Lang argued for a conversion hv the Legislature, the Conference referred to the Loan Council sub-committee for discussion of the plan advanced by the Federal treasurer. This involves a reduction of interest on all Australia’s indebtedness to four per cent.