QUEENSLAND’S CREDIT.

Hawera Star, Volume XLVIII, 7 October 1924, Page 5

QUEENSLAND’S CREDIT.

COMPLETELY RE-ESTABLISHED. BY CABLE—PRESS ASSOCIATION—COPYRIGHT. . LONDON, October 6. The prospectus of the Queensland loan has been published. The Financial News says that Queensland’s credit is being completely reestablished by -the settlement of the dispute with the pastoral leaseholders. “We regard the issue as attractive to investors, the yield being high for trustee security.” The Financial Times says there should he keen demand for the stock. The Moniing Post says that, though not a month since the Commonwealth Treasury intimated that State loans would not exceed their commitments in London during 1924-25, Queensland is now coming forward with a loan which is in no sense a conversion, as arrangements for the £124)00,000 maturing in April are being left for a. later occasion.

Financial circles charitably assume that the Queensland issue was arranged prior to> the intimation regarding- borrowing,, but the point should be cleared up. Giving to the difficult position of Australian exchange, it is much cheaper for Australian States to borrow in London, but external borrowing is illogical when the Australian pound is worth more than the British. Queensland stock is notable for its high yield in comparison with existing trustee securities, hut even measured hv the price of Queensland’s own issues, the new loan is by no means dear.