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Wednesday, 9 July 1930

Apart from two issues of short-term treasury-bills, the only loan operation conducted overseas during the year just closed was the conversion of £3,781,700, 3$ per- cent. Queensland stock which matured in London on 1st July, 1930. This conversion was effected by the issue of Queensland securities guaranteed by the Commonwealth and bearing interest at 5| per cent, per annum, the issue price being £97, and the currency six years, with a right to the Government to redeem the loan after four years.

As regards Australian borrowing, two public flotations of £10,000,000 were authorized by the Australian Loan Council to provide funds for public works for the Commonwealth and the States. The first loan was raised in November last, the terms being 54 per cent, at £98, the loan maturing in 1934. The second loan is now on issue; the interest rate is 6 per cent, at par, and the loan matures on 15th November, 193S. A satisfactory response is being made by the public to this loan.

The most important operation during the year was the conversion and redemption of the £10,362,000 6 per cent, loan, which matured on 15th March last, with which was associated a conversion offer to holders in the 6 per cent, war loan for £60,000,000 odd maturing on 15th December next.

The new terms offered were 6 per cent, at par for a period of seven years.

Of a total of over £70,000,000 maturing in March and December of this year. £48,000,000 was covered by this operation. Allowing for available sinking funds, the balance of the December loan to be provided for later in the year will be approximately £18,000,000.

In February last, when the conversion offer was made, there was some apprehension as to our power to deal with this huge sum, without at least some assistance from the oversea market. The result of the conversion offer has proved the operation to be within the capacity of our own resources, and we confidently look forward to making satisfactory arrangements in regard to the balance of the loan when it matures in December next.


The estimated and actual expenditure compare as follows: -

The net loan expenditure for 1929-30 was £2,872,850 less than the corresponding expenditure for 1928-29, and £1,009,185 less than the amount provided in 1929-30 for debt redemption.

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