THE QUEENSLAND LOAN.

Lyttelton Times, Volume LXXV, Issue 9426, 29 May 1891, Page 5

THE QUEENSLAND LOAN.

AN ASTOUNDING FAILURE.

[Eeefiived May 28, at 10.80 a.m.l LONDON, Mat 27.

Tenders for the Queensland 3| per cent loan of two and a half millions, with a minimum of 94, were opened to-day. Only <£300,000 was tendered, and it has been decided that the balance of the loan shall remain open for a week at the minimum. None of the syndicates subscribed, as they have not unloaded the previous loans of the Colony. The exact amount tendered for the Queensland loan was £296,800.

[Eeceired May 28, at 7.30 p.m.l The present depression in New South Wales stocks causes city men to regard the prospects of conversion as gloomy. The result of the Queensland loan surprised even the pessimists. Among the reasons alleged in the city for the astounding failure are the distrust of Queensland’s Republican tendencies, the refusal of the Colony to contribute to the naval defence scheme, and her disposition to follow an isolated policy on other questions. The Stock Exchange manifests delight at the failure, and predicts that the stock will be secured at as low a price as 90. It suggests a temporary renewal of the 6 per cents, which have matured, and urges the withdrawal of the £300,000 that was offered, on the ground that it is too small a line. Dealers think it is a mistake to keep the loans open, as further subscriptions are unlikely. [Eeoeired May 29, at 1 a.m.J

May 28. The Queensland loan is quoted at I per cent discount. The Times says the loan ought to be confined to the redemption of debentures. The time was badly chosen for launching it, the syndicates who usually tender being too deeply involved to operate, and the rate of interest too low.

Brokers complain that the tenders were opened in private. The Daily News thinks it was rash to offer the loan without previously securing tenders from the banks, or ascertaining whether syndicates would take it np.