AUSTRALIA’S WAR LOANS

Hauraki Plains Gazette, Volume XXXVII, Issue 5017, 23 August 1926, Page 3

AUSTRALIA’S WAR LOANS

QUESTION OF REVIEWING DEBT.

STATEMENT BY PRIME 1 MINISTER.

A brief announcement concerning the Commonwealth’s indebtedness to Great Britain in war loans, was made by the Federal Treasurer, in reply to questions, asked in the House of Representatives. Th Treasurer said the total indebtedness, of the Commonwealth to the British Government, under the. funding arrangements, was £92,480,157, and of that amount £5,614,274 bad been repaid. The present indebtedness in respect to the war loans, therefore, was £86,865,883. The average rate of nterest yas £4' 18s 4d per cent, per annum, and the discharge of the debt was provided for by an annual payment of 6 per cent, on the original indebtedness. The bala’.nce of the annual pdymeht was applied to the redemption of the debt, which, under those arrangements, would be extinguished in 19'56 —thirty years hence.

Replying to- a question in regard to the matter of reviewing the whole war debt, in view of the favourable terms granted by Britain to Italy and France, the Prime Minister said that the matter was raised by him a.t the last Imperial Conference. The Government considered that the war debt of Australia should be regarded as part of the whole war debt of the Empire, and that the rate of interest payable, to Britain should be the average rate paid by Britain, including, of course, the amount pajd to .the United States of America. He would take the matter up again at the forthcoming Imperial Conference.