CONVERSION LOAN

Hokitika Guardian, 5 June 1931, Page 5

CONVERSION LOAN

AUSTRALIA'S PROJECT. (Australian Press Association.) MELBOURNE, June 3. The financial committee of the Premiers’ Conference recommends inviting holders of tax-free securities | maturing in 1921-33-34 to convert | them i to new securities maturing in 1941 on the same basis as the other proposed new conversions, bearing four per cent. An important amend ment in the terms of the loan that the Government have the option of redeeming all, or part, of it, after 1950, was agreed to. With Premiers of Tasmania arm Western Australia dissenting the Premiers’ Conference decided that a hia of twenty-five per cent, be imposed on bonds, not converted into the new four per cent. loan. Citing the fortunes in tax-free securities in .New South Wales. Air Lang demanded that tire holders should not be allowed to escape the general penalty. The Chairman of the Common* wealtli Bank Board, Sir R, Gibson, was invited to meet the conference today.. • , TAX FREE BONDS. . LANG PROPOSES 25 PER. CENT. IMPOST. MELBOURNE, -June 4. Following the decision of the Premiers’ Conference yesterday for the imposition of a twenty-five per cent, tax on interest on the holders of taxable securities, who decline to convert, Air Lang (Premier of New South Wales), almost precipitated a crisis today when lie moved for the imposition of a twenty-five per cent, penalty tax on tax free securities. He declared the holders of the tax free securities were the wealthiest in the community. Mr Theodore (Federal Treasurer) pressed for a decision, remarking that it was doubtful whether, in view of the country’s grave financial plight, these people would get any interest at all.

Mr Lang’s motion was defeated, the Premiers ok Victoria, Queensland, Tasmania and Westralia, opposing it.