THE QUEENSLAND LOAN

Waikato Times, Volume 94, Issue 14775, 14 October 1921, Page 4

THE QUEENSLAND LOAN

It is not surprising (as a contemporary points out) that the Queensland Government’s notation of a loan in New York has caused a stir. Hitherto it has hardly occurred to any of the Australasian States that money might be borrowed from America. The borrowing colonies have adhered as strictly to the practice of going only to London for loans when they go abroad at all as if there were some law thus restricting them. The example of Queensland is not likely to be widely followed, and it would not be in the Empire’s interest if it were. A high authority was quoted in yesterday’s cable news as saying that American financiers have long been endeavouring to establish financial relations with the Dominions, but without success, although more than one Australian State appeared inclined to negotiate. We believe that New Zealand has not been exclude I from the offers of American financiers, and that she could have obtained substantial sums on very good terms. The present Government, however, is not at all likely lo depart from the established practice, and this for reasons more than merely economic or financial. At the present time nettling is much more Important than the strengthening of the bonds of Empire and the avoidance of any break with the traditional /flitancial nr economic relations subsisting between the Mother Country and the Dominions. The Empire cannot be self-contained, but it has come nearer to being so than any other political organisation in the world. The war disturbed the course of interimperial trade, but it is the desire of everyone in the Empire that wo should gel back to that course as speedily as may lie. Sn, also, it is necessary tbit the financial relations between Britain and the Dominions shall continue lo he of that special kind which has hitherto been the rule. Queensland has succumbed to the American offer because it was difficult for Queensland In overcome I ho very natural prejudice of the London market against the Queensland Government, arising out of that Government's treatment of the people who invested in land leases in the Stale. Excuses are being made in some quarters for the Queensland Government, which is represented a? the innocent, or fairly innocent, victim of an unfair boycott. This is absurd, and it is absurd also lo suggest that Loudon financiers must not assume "a

censorious attitude with reference to a Dominion’s internal affairs.” The lender has a perfect right to fix and tn insist upon standards of credit in dealing with borrowers, and no Dominion which deals fairly with investors, and which is faithful to its contracts, need fear unfair treatment. It will be time enough for the Dominion to think of going to America for money when it becomes impossible to float loans in England.