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The Argus (Melbourne, Vic. : 1848-1954) (about)
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Cite: http://nla.gov.au/nla.news-article4451269
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THE CASH VALUE OF THE
PREMIERS' PLAN.
Mr. Tunnecliffe says that the Hogan Ministry desires to reduce the rate of interest on Australian loans borrowed
overseas.
There are two methods by which this end may be accomplished - the Premiers' plan and the Lang plan.
The Premiers' plan is designed to
re-establish the credit of the Com- monwealth in the esteem of British investors. If her credit could be re- stored to-morrow the bill for inter- est could be reduced immediately.
Nearly all the bonds bearing inter-
est at more than 5 per cent. -
£98,000,000 worth - may be redeemed at any time. Cheaper money could be borrowed to pay off these bond-
holders, and the Commonwealth would gain relief at once instead of
wasting time and money in a fruitless attempt to negotiate with investors, as suggested by Mr. Tunnecliffe.
A little time ago Australian credit was improving so rapidly that there was definite promise that she would be able to borrow cheapor money. Then for the second time Mr. Lang repudiated his obligations, went back on his undertakings, broke his pledged word and departed from the Premiers' plan. The value of Aus-
tralian bonds fell so seriously that
the slump has made almost impossible the successful conversion of a loan of £13,000,000, borrowed by New South Wales, which must be paid in
November.
To repay this loan it will be neces- sary now to borrow money at a higher rate of interest, or to provide the money by some other means, at least
equally costly.