AUSTRALIA'S CONVERSION LOAN.
Although not actually constituting new money, mention must be made of the successful flotation last week of the Commonwealth of Australia Conversion Loan. In- October a little over. £12,000,000 in New South Wales 8 per cent. Bonds mature, and the Commonwealth Government has the right to redeem on three months' notice Victoria 5 per cent. Stock for a little over £1,000,000. Consequently, there has now been issued a new Commonwealth Loan for £18,470,000 in 8 per cents• at par, holders of the maturing Loans already referred to having the right to convert into the new Stock at par. The new Loan runs for a maximum period of six years and a minimum period of four years, thus making the issue specially attractive to the Money Market which requires for its portfolios short-term gilt-edged securities. It is not at all surprising, therefore, that the lists for cash applications should have been closed within a few minutes of the opening, for the amount was doubtless considerably over- subscribed.