20 DECEMBER 1930, Page 35

A moderate rally in Australian securities has constituted one of

the few bright features of markets during the past week, and it has been due to the victory obtained by the Australian Treasurer in the matter of the Conversion Loan. When some weeks ago the question was raised of how impending maturities for about £28,000,000 were to be met, the Labour caucus endeavoured to urge upon the Cabinet that there should be a compulsory postponement of repayment for twelve months. This idea, however, was indignantly turned down by the Treasurer, who threatened to resign if such a proposal were carried through, and in this defiance of the Labour caucus lie was supported by Mr. Scullin, the Commonwealth Premier. Therefore, the Australian Cabinet made a conversion offer to the holders of the impending maturities and the result has completely justified the confidence reposed in the patriotism of the Australian investor. Had the recommendations of the Labour caucus been followed, the consequences could not have been other than disastrous to Australian credit. As it is, the success of the Conversion offer has strengthened confidence in the Australian position.