MATURING LOANS.

Dominion, Volume 7, Issue 1896, 3 November 1913, Page 10

MATURING LOANS.

The Melbourne "Arpiis" of a recent data states that- tho preparations announced by tho Queensland Government for the redemption of the loans matnr.mg sn 1915 np\iin. wll Attention to Pome of tlic problems arising out of the borrowings of former veors. The amount to be dealt with. £11,728,800. is much larger than that of the loans which have hitherto had t-o be renewed. So far as Queensland Is concerned, the problem of reieominir such a heavy p.innunt wtll not- ctriee -aiKUTi'. A fmiliar problem, however, (iwfldts other States. Keiv South Wales has about 123 millions fnlliilß duo in 1918, about If* millions in 1924, about 93 millions in 1933, o"d about 12* millions in 1935. Amounts Hko tlreeo constitute a much more serion? nroWem than the Victorian loan of £4,000.C00, which matured a- lew weeks aso. or loans of amounts ranaintt up to £S,CCO,CfiO. But the most formidable amount to.be dealt with is that of £29,295,302 New Zealand 4 per cents. matnrlntr In 1929. Theec and a number of other Australasian issues fall dn», at fixed date?, as they were floated before the odvantnffo to the borrowing Government of rotoinintf the option of to* demptiion for O- neriod of rcaTi? was fnmreciat n d. A dt'-ndvantaso of fixed d-ves or maturitv is that onerous forms mav hove to be paid for a renewal loan, whereas with an ontional neriod it would be possible to pJclc a time when a new lsenio could bo made on favourable terms to the Government. The Queensland Government is acting properly in Fcttivia about, its preparations well in advance of July .1, 1915, when its 113 millions have to be redeemed, and, whi'e it is iraflecsible to caleuloto the probaWo ftate ol Ih&.MaTvvct duriutr next year or tli*s first half of 1915, it will doubles be found expedient to moire the actual issue of the redemption loon well in advance of the dato of ma-, tnrity. ' -

NEW GERMAN LIKE. Tile formation of tlie Stettin- Traffic Company, o.=? announced by the London "ShiprfiYtir Gazette." means apparently -the establishment of a third line of steamers to run between Axi*trcUin> and Germany. t]i« new line being for coreo purposes. If the belief is correct that, the BamburK-Aia«TiVn. Line i? booking the.imv concern, it md.icm active pn?hin«? policy oft the part of that comiKiny. \yliich is in cori'«pondcrce with the vecctit cfinouncement vriTli rosrard to th«s Fair Eastern trade. in which the comwflv is now establishing o. "new vline to Yofcolvnna. Presumably. t!ip.-o dovcionmcnts <irc the oiiteome o? the fb'ffcrMic*s betwenn the Famburff-Arncrnva Line and the Nord Bentscher L!,oyd, which have ari?on during the last few months in connection wit-fc ,tb» Atlantic- trade. From t-hc pnint of view of Australian importers, tlie question of interest wlietlic the- new vent'ore is fimply intended to obtain a- share In- tlio trade between Germans- and Australia, or whether rate-cut-tinjr is likely to result. Tlij latter, however, call TistcHv bo recorded on Croboble. as most steamship companies have had at fiomo tlmo or other cxpcrecnee of the Im".iisffictorv nature of competition in raws. The trade- -betTvee.il Germany aiiu A\if>tra.lia ha* for o. pood number of years post been cordufltcd by tho Nord Doi'techer Lloyd and the German-AuStralirtn Line, both of wM»h have/ provided o.n Increasing amount ot tonnn-Ko' to meet tho requirements of expanding tod-e. ;