Australian Finance The Federal Government's scheme for conversion is now
known to oblige bondholders who object to it to " contract out," instead of the usual procedure, and this moreover at the peril of an unknown penalty thereafter. It is therefore not surprising that there is no prospect of raising a loan, and that the Treasury Bills due in London in June will have to be met by a shipment of gold. It is not known yet whether the banks are prepared to assist the Government, and probably they are waiting until some of the legislation to carry out the economy plans shall have been passed. They have, however, agreed to carry on the Governments' overdrafts for the present, and events seem to be placing the dissentients from the economy programme in a definite minority in opposition. This is a clear gain, and continues the improvement which affairs have shown for the last few weeks.
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