THE QUEENSLAND LOAN

Waikato Times, Volume 94, Issue 14774, 13 October 1921, Page 5

THE QUEENSLAND LOAN

AMERICAN FLOTATiON DEFENDED. NOT A GAMBLE. (United Press Association.) Received October 12, 5.5 p.m. LONDON, October 11. The Australian Press interviewed Mr Sheldon, the London representative of the Blair Company, the New York bankers, who are reported to be negotiating with Victoria in reference to floating a loan in New York on similar terms to Queensland. Mr Sheldon refused to discuss the Victorian proposition, and refused even to admit that they had made such a proposition, but warmly defended Queensland's action, although not related to his firm. He pointed out that the National City Company is an eminent institution, with a branch in London, and world-wide connections. He is of opinion that Queensland's recourse to New York would have better results than were possible under the terms of the New South Wales loan. He denied that Queensland was gambling upon the future appreciation of the exchange unless the sterling further permanently depreciated, which British authorities regarded as impossible. On the other hand, if the sterling appreciated, Queensland would gain enormously when the periods of repayment were reached. Mr Sheldon explained that there will be annual repayments by Queensland in two periods of five and 15 years respectively during the currency of the loan, as follows: —During the first five years Queensland must provide annually 400,000 dollars' sinking fund for the re-purchase and retirement of the Queensland bonds at par or below par; during the second period of 15 years Queensland must provide a sinking fund estimated at 000,000 dollars annually for the repurchase and retirement of onefifteenth of the outstanding indebtedness at or under 102*.

QUEENSLAND GRATIFIED. MATERIAL ADVANTAGE HOPED. Received October 12, 5.5 p.m. LONDON, October.ll. Mr Theodore has cabled Mr .1. MoL. Hunter, Agent-General for Queensland, the terms of the loan, adding: "We intend converting' dollars into sterling, which should result in material advantage to the State. The Government is gratified at the manner in which the issue was received in America." ANOTHER BANKER'S VIEW. NEGOTIATIONS WITH VICTORIA. (United Press Association.) ADELAIDE, October 12. Mr Miller, governor of the Commonwealth Bank, says that owing to the present favourable rate of exchange the Queensland loan will work out at nearly the same rate as mohey borrowed in England. MELBOURNE, October 12. MrW. M. McPherson, the State Treasurer, explained that the cable is correct that American financiers are negotiating a loan for Victoria, but said that negotiations which have been entered into with British houses will be carried I out.