QUEENSLAND LOAN QUEST.

New Zealand Herald, Volume LXI, Issue 18631, 12 February 1924, Page 7

QUEENSLAND LOAN QUEST.

COSTLY NEW YORK MARKET. a PER CENT. SUGGESTED. Australian and S.Z. Cable Association. (Reed. 6.27 p.m.) NEW YORK. Feb. 10. The Premier ■?{ Queensland, Mr. E. G. Theodore, and his party have arrived. It is understood that two Wall Street bond houses have already asked for appointments to discuss the loan question. It is considered extremely unlikely that Queensland will bo able under any circumstances to obtain £25,000,000 in the New York market, even if spread over a two-year period. Financiers here are not prepared to make such a large advance despite the fact that Queensland's credit is believed to be excellent. Preparations are being made for the great Japanese loan, now estimated to be 250 million dollars, of which at least three-quarters will be floated in New York and the remainder in London. The loan will bring approximately 7 per cent, in to investors. Thus it is unlikely that Queensland will obtain any money here under 8 per cent. ( j The cost of floating a loan in the United States is high. Underwriters' commissions and fiscal agents' fees total !4£ per cent., whereas in London they amount to less than 2 per cent. Additional expenses, such as engravers' bills, here raight total £5000, whereas they are very small in London.

Best informed New York bankers advance the opinion that because British capitalists consider Queensland's credit intrinsically sound they will be willing to overlook the pastoral leases controversy and grant necessary funds at fair terms, fearing, possibly unfortunately, engagements for Queensland should she be forced into borrowing elsewhere under great need.