The expansion in governmental expenditure is reflected in an increase of £12,600,000 since June in the Commonwealth Bank's holding of Government and other securities, making it £105,900,000 in November. The Government has held off the public loan market so far, but it i: reported that the Loan Council will meet in Melbourne on January 19, to arrange for the issue of the first war loan. The amount is expected to be large, possibly £20,000,000, and, no doubt, it will be offered at a time when the substantial amounts arising from the disposal of primary products will be available for investment, Interest rates have been easing during the last two months the yield on Commonwealth Government securities having ten years or over to run being £3/16/- per cent. on December 13, against 4 per cent. on August 30.
Text read from the printed page and cleaned; old type leaves the occasional error.