PM Transcripts

NOT FOR PUBLICATION OR BROADCAST BEFORE 7.10 P. M. MONDAY, SEPT.?.
BROADCAST BY THE PRIME MINISTER AND ACTING TREASURER, THE RT. HON.
R. G. MENZIES, C. H. 0Q. C. oM. P.. ON MONDAY, 7TH SEPTEMBER. 1959.
P. M. No. 32/ 1959
COMMONWEALTH LOAN
Tomorrow a new Commonwealth loan opens. It is the first loan.,
this financial year. We hope that when the loan closes on 23rd
September, we will have obtained œ 50m. or more towards the borrowing
programme of œ 220m. approved by the Australian Loan Council for
1959/ 60, and that we will have secured conversions of a large amount
of the œ 195m. of maturing securities.
The success of a Commonwealth loan is of absolutely firstclass
importance to you.-I would like to see this fact more widely
understood. you may say, " I hold no Government bonds, and,
as for buying any this time, well, I can leave that to rich people!"
To say this would be wrong. Everybody who pays a tax, whether it is
on his income or on a packet of cigarettes, has an interest in the
success of our loans; for if they don't succeed, more money for
public works will have to come out of revenue which means out of
taxes. Everybody who wants to see more school buildings, more
housing, better roads, greater water supply, and the like, has a
lively interest in the success of our loans, which represent the
investment of some of our savings in the material progress of our
country. Those of you who hold bonds which mature on September
will, I profoundly hope, convert and not call for the cash, Your
own circumstances may compel you to do so. But if they do not,
please realise that the money to redeem unconverted bonds comes to
a real extent from revenue9 iCe. from taxation.
We arc offering the usual variety of bonds and inscribed
stock. In addition, Special Bonds Series B will remain on
issue until further notice.
I make a special mention of the Special Bonds. They show an
attractive ratu of interest, They permit the smaller investor,
should he need it, to realise his holdings w. ithout loss before
maturity. They give a bonus to anyone who holds his bonds until
October 1962, and this bonus increases until the bonds mature in
1966. The rate of interest increases in stages from 4 per cent.
in the earlier years to 5 per cent. over the last three years.
Special Bonds have in the past proved most popular.
And now a word more to the holders of maturing bonds and
stock. We place the greatest importance on your converting to the
new securities. œ 195m. of 3 1/ 8 per cent. and 3 1/ 4 per cent
securities mature on 15th September. That amount is little short
of the entire borrowing programme for Commonwealth and State works
and housing approved for this year. You can see what a problem
the Governments of the Commonwealth and States will face unless
most of you convert. The new securities carry much higher rates of
interest than those you now hold.
In the now loan there vwill be interest at per cent, for
1962 securities, 4 3/ 4 per cent. for 1968 securities or 5 per cent,,
for 1979 securities. Or you can subscribe or convert to Special
Bonds. Interest on all of those securities carries a in the
income tax rebateo
You are thus being offered a sound investment and at the
same time an opportunity to advance our country.
CANBERRA, A. C. T.
September 7, 1959,