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New Commonwealth cash and conversion loan



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FOB PRESS ;

NEW COMMONWEALTH CASH AND CONVERSION LOAN

Broadcast by the Federal Treasurer, The Righti Honourable Harold Holt, M.P, f Tuesday, August 3» 19&5.

A new Commonwealth loan opens to-rmorrow. It will he the '

first Commonwealth loan raised in this new financial year. .

The proceeds will help to finance the works and housing programme

to a total cost of £295 million recently decided hy the -

Australian Loan Council.

This year’s total cost is only a relatively small increase.

You will readily understand the reason for this:.^ although there

are obviously many important projects needing the urgent

attention of the State Governments. The Premiers recognised that

the demand on resources, and especially on the building and

construction industries for defence purposes, would be very

heavy in the year ahead. But £295 millions is a very large sum

to raise, particularly in a year when our prospects of raising

loans overseas are not at all bright. We need your support in

this loan and the others to follow later in the year.

These loans are important to us all, because they finance a wide variety of capital works. Many of these are needed for

the development of our national resources and for community

services which can make life more pleasant for us. They include

schools and hospitals, dams and bridges, water and sewerage works,

and, of course, many others. You will see that these are all basic to the growth of our towns, our cities and country areas.

They are all. essential to a growing and thriving economy. Many

of them will also be making a contribution to our defence effort.

So you see, the purposes of the loan are important. I am sure

you will want to help, and I can assure you that you will be

helping yourself.

The loan conditions are attractive. The feature of Commonwealth loans that commends them most is that they are safe.

Your Commonwealth Government stands behind them. . Payments of interest and repayment of capital on maturity are completely assured. Investors who wish to av-oid the fluctuations and

uncertainties of the market should be attracted by Special Bonds,

These carry rates of interest comparing with those ruling in the market, but they may be readily cashed at face value or better.

You cannot fail to get your money back if you invest in Special

Bonds.

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In the loan opening to’ -morrow there is a choice of

three securities. The short dated securities mature in

May, 1968, and offer a yield of 5 per cent. There will also

he a medium term security maturing in February, 1975» which

will offer a yield of roughly 5"§ per cent. The long term

security maturing in May, 1985» will have a yield of 5 per

cent.

The target for the cash loan opening to-morrow will be

£35 million, but I am hoping you will help us to do better

than that. In addition, £79 million of per cent. securities issued in 1962 will mature on August 15. Holders

of these will have the opportunity to convert into any of the

securities in the new loan or into Special Bonds Series "L".

Think seriously about the advantages of subscribing to

the new cash loan, of converting your maturing securities, or of taking up some Special Bonds. Here, I suggest, is a means

of getting outstanding investment advantages with the added

satisfaction of knowing that you are making a helpful

contribution to Australia’s security and development.

As I speak to you, jroung Australians, serving far from home and family, are going through tough times and risking much, even life itself, to help keep us secure. You can render a

useful service to your country at no hazard and some reward by your financial support of the loans your Governments must raise.

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CANBERRA .

August 3. 1965.-