AUSTRALIAN BONDS

Rotorua Morning Post, Volume 3, Issue 689, 15 November 1933, Page 5

AUSTRALIAN BONDS

(Press Assn. —

AN AMERICAN PLAN proposal to convert dollar bonds to ' sterling inflation favoured

By Telegraph — Copyrlght).

(Rec. Nov. 14, 5.5 p.m.) New York, November 13 The Evening Post's financial editor declares that Britain has a strong weapon to check thc rise in sterling by offering to convert Australian dollar bonds, of which some 200,000,000 are outstanding, into sterling obligations. With the pound above five dellars, sterling bonds of 31 to 4 per eent interest would be attractive to holders of Australian dollar issues. Although tbe interest thereon is soniewhat higher, British investors, owing to the high regard in which they hold Australian credit, would buy the dollar obligations outstanding here for eonversion into sterling bonds tlius creating a demand for dollar exchange which would check the decline of the dollar and the rise of sterling. A United Press despatch states that a tally of Congress reveals an overwhelming inflation sentiment. Unless the administration's policy produces marked results by January, legislators are likely to talce matters into their own hands and either devaluate the gold content or issue flat money.