AUSTRALIA'S £7,000,000 LOAN The honour of re-opening the market for
new capital issues after an interval of over a month goes to the Commonwealth of Australia, who are borrowing this week L7,000,000. The issue takes the form of 3i per cent. stock at £99 per cent., redeemable 1952-56, and thus compares favourably with Australia's two existing 3f per cent. loans, both of which stand at over Lico per cent. Of the new money £2,000,000 is for defence expen- diture, and the balance to redeem Treasury bills. But from the public point of view it is all new money since the Treasury bills to be redeemed are not in the invesfor's hands. The issue seems assured of success : its objects and its price will com- mend it to the City, while the fact that Australia heads a longish list of borrowers makes success the more necessary.
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