QUEENSLAND LOAN

Waikato Times, Volume 94, Issue 14771, 10 October 1921, Page 5

QUEENSLAND LOAN

FLOTATION IN NEW YORK OPPOSED TO EMPIRE'S INTERESTS. FINA NCI ALL V UNSO UN B, (Australian and N.Z. Cable Assn-) Received Oetober 9. a.a p.m. LONDON, October 8. The city's opinion ol Queensland's borrowing innovation varies. The strongest opponents of Queensland's alleged repudiation, while admitting Rial, Mr Theodore had no option but to go elsewhere because he could not borrow in London on any practicable terms owing to financiers’ and investors' serious views of the alleged repudiatory legislation, point out that borrowing in New York is opposed to the British Umpire’s interests, which demand the earliest possible reduction of the indebtedness to New York. More moderate opinion holds that London’s financial wire-pullers had gone 100 far in identifying themselves with United States politics in coudneling a deliberate campaign, the result of which damaged not only Queensland’s, but the Commonwealth’s, credit.

It is pointed out that the United States is deliberately seeking investments in the British Empire, notably in Egypt- There is an ultimate danger of American financial interests undermining Dominion finance and enlailings its passing from London to New York, which is more serious than any legislative action Mr Theodore has taken. A high authority in London with an intimate association with Anglo-Austra-liau finance, told the Australian Press that American representatives have been long endeavouring to establish financial relations with the Dominions, but heretofore unsuccessfully, although more than one Australian Slate appeared inclined to negotiate. Eventually, as the result of numerous consultations of London financiers with the Dominions’ advisers, it was generally understood that as long as London was prepared to finance llic Dominions the latter were not prepared to assist American enterprises to transfer the world’s financial centre to New York. At the same time the Dominions’ representatives pointed out that if the Dominions refused American allurements. London financiers must not assume a censorious attitude with reference to the Dominions' internal aflairs which in the Queensland case have practically amounted to boycott. Another authority lias stated that the Australian ?tales were disappointed at the low minimum for New South Wales compared with South Africa and Ceylon, because it would have had an unfavourable reaction on the other States contemplating borrowing. It is understood that the Commonwealth will borrow £5,000,000 —Victoria £3,000.000 and West Australia £2,000,000. The Commonwealth and Victoria scheme will probably he launched in October or November, and the rest of Australia in January. The loans are for the purpose, of retiring Treasury bills maturing then. There is considerable speculation as to whether Now South Wales intends employing the proceeds of the loan to meet £3,000,000 of Treasury bills msluring in February or spending it on public works in the hope of renewing the Treasury bills or floating a new loan in January to pay them off. This authority pointed out that Queensland is not only paying a higher interest Plan in London, but the flotation charges which never exceeded two per cent in London would probably reach four per cent in New York. The consensus of opinion is that the Queensland transaction is financially unsound, but the boycott left Queensland with-out-option. Other States are not likely to follow the example. It is reported that the whole transaction was completed at Brisbane without reference to London. FLOATED WITH EASE. GRABBED UP BY THE PUBLIC. (Australian and N.Z. Cable Assn.) Received October 9, 5.5 p.m. NEW YORK, October 7. Queensland loan binds are selling on the kerb market at a premium of onehalf per cent. The newspapers generally comment on the case with which the offering is disposed of. LONDON, October 8-

The newspapers give prominence to the New York message concerning the successful issue of Queensland bonds and the Brisbane message giving Mr Theodore’s denial that the Government is conducting negotiations in New York. . Telegrams from New York definitely state that the public “gobbled up” the Queensland bonds. AMAZEMENT IN LONDON. Received October 9, 5.5 p.m. LONDON, Oetober 8. City circles are amazed at Mr Theodore’s denial of the loan, of which the most responsible financial and other dailies publish the most precise details from New Y’ork. Correspondents believe that the only feasible explanation is that Mr Theodore is referring to rumours of Mr Hunter’s comments.

Replying to a suggestion published in a section of the London press that certain London interests were trying to persuade the Queensland Government to raise money in London by placing slock privately instead of in the ordinary public issue, Mr J. M. Hunter (Agent-General) stated that this was a rumour, and the writer’s warning against back-door operations is totally unjustifiable. Before Queensland, could raise money here special legislation would be necessary entailing a public discussion.