Financial Notes
AUSTRALIAN BORROWING.
AT the moment of writing, underwriting is proceeding in connexion with an impending issue by the Commonwealth Government of Australia of a loan of £7,000,000 in 5 per cents. at the price of 971. The loan is redeemable at latest in 1975, and at the option of the Government in and after 1945. The loan represents entirely new borrowing and it remains to be seen just what measure of response will be given to it by the public. I am inclined to think, hoViever, that the stock is attractive at the price mentioned, representing as it does a full Trustee security, giving a yield of well over 5 per cent., while
it is also satisfactory to note that the borrowing of the various Austialian States is now being co-ordinated, and in the case of the present issue a portion of the proceeds is required, not for the Commonwealth Government, but for certain of the individual States. As previously mentioned in these columns, Australian borrowing is for the moment in a transition stage, for in two years' time, if the measure is approved by the Australian people, the Commonwealth Government will assume the whole of the debts of the individual States.
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