2 AUGUST 1935, Page 36

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.