SATURDAY, OCTOBER 15, 1921. QUEENSLAND'S AMERICAN LOAN.

Hawera & Normanby Star, Volume XLI, Issue XLI, 15 October 1921, Page 6

SATURDAY, OCTOBER 15, 1921. QUEENSLAND'S AMERICAN LOAN.

Altbough.it may. be; possible and to some extent reasonable to make out a case justifying the-: action of the Queensland Government in going, to America to raise a loan, when one thinks iof the reasons why Mr Theodore's visit to London was • a failure one finds it very difficult to accept his explanation that "as London .financiers were influenced a^pafeiitiy by political considerations and had made up their minds to keep Queensland off the London market, and.as there was insufficient local money offering^ the Government had decided to accept an Ameri-can-offer,- which was niade through the Commonwealth Bank, and under the advice of the governor of That bank." The position is that Mr Theodore and his Ministers, who now talk so loudly about the attitude of London financiers, passed legislation which was anything; bill; fair to the people who had invested money in Queensland in years gone by. Tho following briefly explains the repudiation Acts which have

brought Queensland into disfavour in financial circles in Britain: Queensland, by virtue of an Act of Parliament, offered to lease cortain pastoral "holdings on terms favourable enough to secure their continued occupation. These -wero taken up or retained by lessees, some o£ whom were the representatives of English companies, in terms of the legislation; tbey were improved and were made productive. Then the Government wished to get more rent for the land and passed an lAct increasing the rents beyond what twenty years previously it had 'engaged to do. The Brisbane Tramway Company, which was constituted with British capital, was due tor acquisition by the State in terms of the rights which it had acquired for running tramways i through the streets. The Queensland Government passed legislation which reduced the value ot the assets of the company, so that the money to bo paid by the State for acquisition would bo reduced. Such actions are naturally objectionable to the sense of justice and fair play which British citizens hold dear, and nobody, except the Labour sections Which Mr Theodore leads, was surprised when he failed in his mission to London. The London financiers desired'that Mr Theodore slnrald repeal the repudiation Acts as a guarantee that it would be safe for them lo lend money to the Queensland Government. Mr Theodore refused to agree to that and argued that British financiers were trying to dictate what Queensland legislation should be.' That is why Mr Theodore's mission to London failed and why ho accepted the American offer for his loan. The financiers in New York may or may not know of the repudiation Acts, but one thing is cortafti—if the Theodore Government act in a manner towards American financiers similar to the way in which they acted towards British financiers, there will not be many successful Queensland loans floated in Now

York. The departure made by Queensland is- not calculated to help tho British Empire and if all the Dominions were to transfer their financial dealings to* America it is easy to see *how serious a disintegrating influence it would become to the Empire. If Queensland desires to secure loans in London she must wipe out the blot upon her Statute Book, and wnen that is done we have no doubt but that the financiers will hd willing to trust their mvegtim>nts jo a State which has great resources and possibilities. .If >the financial accommodation being sougnt from America is to continuo only during the period of stringency it may perhaps.be excused, but if Queenslanl-s activity on the American market is a forerunner o£ a permanent borrowing policy from that country then it must be regarded as a serious matter for Britain. New Zealand's credit in Lon-

don is so good and the readiness of the financiers to take uu-the recent loan was so marked that it is quite obvious that Queensland's difficulties were due to.the absurd actions of her T3ovemment in its repudiation Acts. It is to be hoped that they will be repealed and that Queensland will then raise her'loans in London, which British people desire to see restored as the world's financial centre.