Borrowing in America.

Press, Volume LVII, Issue 17273, 11 October 1921, Page 6

Borrowing in America.

It is not surprising that the Queensland Government's flotation of a loan in »New York has caused- a stir. Hitherto it has hardly occurred to any of the Australasian States that money might be •borrowed from America. The borrowing colonies have adhered as strictly to the practice of going only to London for loans when they go abroad at all a? if there wore some law thus restricting them. The example ol' Queensland is not likely to be widely followed, and it would not be in the Empire's interest if it were. A high J authority was quoted in yesterday's cable news as saying that American, financiers have long been endeavouring to establish financial relations with the Dominions, but without success, although more than, one Australian. State appeared inclined to negotiate? "VVe ■ believe that New Zealand has not been excluded from the offers of American financiers, and that she could have obtained substantial sums on very good terms. The present Government, however, is not at all likely to depart from the estabrished practice, and this for reasons' more than merely economio or financial. ', At the present time nothing is much rforeimportant than the strengthening of, the bonds of Empire and the avoidance of any/break with toe traditional financial: or economic relations subsisting between the Mother -(Country and the Dominions. The Empire cannot be self-contained, but it has come nearer to being sc'than any other political organisation' in the world: The war disturbed the course of intra-Iraperia! trade, but it is the desire of everyone in the Empire that we should' get back to that ', course as speedily oa may be. So,, ako, it is necessary that the financial relations between Britain and. the Dominions shall continue to be of that special kind "which has hitherto been the rule'. Queensland has . succumbed to the American offer because it has been difficult for Queensland to overcome the Very natnral /prejudice of the London market against the Queensland Government, arising'out of that Government's treatment of the people who invested in "land leases in the State. Excuses are being made in some quarters for the Queensland Government, which ie represented as the innocent, or fairly innocent, victim of an unfair boycott. This is absurd, and it is absurd also to suggest that London, financiers roust not assume "a censorious attitude with . reference to a Dominion's internal af- ." fairs." The lender has a perfect right to fix and to insist -upon standards of credit in dealing with borrowers, and no Dominion which deals fairly with investors, and which is faithful to its contracts, need fear unfair treatmentIt will be time enough for the Dominion to think of going to America for money when it becomes impossible to float loans in England.