PM Transcripts

P. M. No. -37/ 1959
RESULT OF COMMONWEALTH LOAN
Statement by the Prime Minister and Acting Treasurer,
the Rt. Hon. R. G. Menzies
The Prime Minister and Acting Treasurer, Mr R. G. Menzies,
said today that cash subscriptions of œ C58.5 million were received1
to the Commonwealth loan which closed on Wednesday, September 23.
The loan target was f-50 million, and the over-subscription was
therefore million.
Mr. Menzies said he considered this to be a very satisfactory
result. A feature of the recent loan was a number of large subscrip
-tions from savings banks. This was no doubt associated with the
substantial increases in savings bank deposits which have occurred
in the last few months. Relatively little was received from
trading banks on this occasion.
Mr. Menzies said that nearly three-quarters of the subscriptions
were made to the medium and long-term securities on of
-fer, including about 60% of the total into 5% 1979 securities.
This meant that little more than one-quarter of the subscriptions
were made into short-term securities whereas, in the February,
1959 loan, nearly 60% of subscriptions were made into short-term
securities. During the three weeks since the opening of the
cash loan, cash subscriptions of œ 3.6 million were made into
Special Bonds. This was a little higher than subscriptions made
in the periods during which the last two loans were-open and shcis
that there is a continuing interest in these securities by the
small investor. Total subscriptions to Special Bonds Series B
since 1st July, 1959 are now œ C7.4 million, including œ 3.8 million
raised during the ten weeks preceding the Commonwealth cash loan.
During the thirteen week period since 1st July, redemptions of
Special Bonds Series A totalled œ-800,000, and net receipts from
Special Bonds during the period have accordingly been œ c6.6 million.
Mr. Menzies said that approximately œ C76 million has been
raised in Australia and overseas towards the financing of the
Commonwealth and State 1959-60 borrowing programmes of œ C220 million
approved by the Australian Loan Council œ 10.8 million from
the % 25 million loan floated in New York earlier this month,
œ C58.5 million from the internal cash loan, and œ C6.6 million from
Special Bonds. He added that the Commonwealth is unlikely to
come on to the Australian market for a public loan before the end
of 1959 but will probably be making two cash offers during the
first half of 1960. However, advan ce subscriptions may be made
immediately to the next Commonwealth loan, and Special Bonds will
remain on sale until further notice.
There were more than 250,000 individual holders of the
œ C194.8 million maturing September, 1959 securities for which a
conversion offer was made concurrently with the Commonwealth
cash loan. It will be some time before final results of this
loan are available, but conversions so far total œ 137.0 million.
Redemptions so far are œ 33.8 million and an amount of
œ-24.0 million is still outstanding.
CANBERRA.
29TH SEPTEMBER, 1959