The New Zealand Railways Magazine, Volume 6, Issue 2 (June 1, 1931)
If it became economically necessary to reduce, by persuasion or by force, the burden of public debts in Europe and as between Europe and America, then Australia's debts would become relatively a small affair. But for the present they stand before the world as the subject of a great experiment. The Australian Premiers’ Conference has just decided to ask internal bondholders to voluntarily convert about 550 millions of debt, bearing interest normally at about 5 per cent, to about 4 per cent., thus saving the Australian Governments 6 1/2 millions a year in interest, and thus avoiding a probable default at an early date in payment by Governments of interest due. Voluntary conversion (unforced by taxation) would not only bring financial relief, but its moral effect would be enormous.