ALTSTRALLAN CONVERSIONS.
In view of the strength of high-class investment securities I have little doubt that the latest Australian Conversion
Loan—the particulars of which became known last Tuesday— will be readily applied for. The loan is, in the- main, a' conversion operation offering to holders of New South Wales 5 per cents. for £3,979,050, to holders of a Victoria issue for 113,875,800 in 5 per cents., and to holders of a Queensland issue for £3,781,700 in 51 per cents., conversion into a new' 31 per cent. Commonwealth of Australia Loan at the price of 97, the new loan running for a minimum period of twenty years and a maximum period of twenty-five years. Cash applications, however, are also being invited, and both from new cash subscribers and holders of the old loans a quick response is looked for. I assume, as I am pretty safe in doing, that the operation goes through successfully, and it will then be possible to congratulate Australia upon having within a period of something like eighteen months converted nearly 1110,000,000 of outstanding debt, which carried interest at rates ranging from 4 up to 61 per cent., into new loans carrying a maximum rate of interest of 3f per cent. Altogether these conversion operations will have saved the Australian Government in interest payments annually about £1,964,000 in sterling, or £2,463,000 in Australian pounds.
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