QUEENSLAND LOAN

Dominion, Volume 15, Issue 15, 12 October 1921, Page 5

QUEENSLAND LOAN

TERMS OF ISSUE EFFECT ON EXCHANGE By Telegraph—Press Association—Copyright London, October 10. American advices received- in London state that the Queensland loan was issued at a'- minimum of 99, less per . cent for brokerage. Tho loan works out at £1 7s. . 4d. per cent. It is repayable in twenty equal annual instalments. Repayments after the first five years must be at the rate of 102| per cent. A "high financial authority points out that so far from , stabilising exchange, rne loan will have the opposite effect, because, calculating discount, interest, (brokerage, and other charges, besides the annual repayments at a premium, Queensland will return .£250 for every .£lOO received. —Aus.-N.Z. Cable Assn. cost oFthe loan HIGHER THAN PAID BY ANY COLONY TO BRITAIN. (Rec. October 11, 5.5 p.m.) London, October 10. The "Morning Post’’ says it is surprising that Queensland’s borrowing should ho denied officially when the issuers are actually offering the bonds for subscription, Equally curious is the claim that the loan was issued on a dollar basis in order to obtain the advantage on exchange as the Government will convert the loan to pounds sterling. Tho loan will cost the borrowers 7.2 per cent., and must be paid in dollars whatever their price. The only possible advantage will be that derived from tho recovery of the American exchange, which will reduce the annual interest and lessen tho cost of repayment. It is equally possible that tho exchange may fall. No British colony has yet paid 7 per cont. for a loan from Britain. Meanwhile the firmness of the American exchange is a. disadvantage to Queensland as regards meeting the London liabili-ties.—Aus.-N.Z. Cable Assn. STRAIGHT-OUT DOLLAR LOAN STATEMENT BY MR. THEODORE. (Rec. October 11, 9 p.m.) Brisbane, October 11. Mr. Theodore, the Prefnier, stated that it ,wos a straight-out dollar loan, with interest and sinking fund on a dollar basts. Thus Queensland would get the benefit of the inevitable improvement in tho rate of tho dollar exchange over a period of twenty years.—Press Assn. BORROWING IN AMERICA REGRETTABLE FEDERAL TREASURER’S VIEWS. (Rec. October 11, 9 p.m.) Melbourne, October 11. Tho Federal Treasurer considers Queensland’s American borrowing regrettable, firstly because it is the first time an Australian State has, gone outside the Empire for financial accommodation; secondly, the rate of interest of 7 per cent, for Government securities is very high.—Aus.-N.Z. Cable Assn. AMERICAN OFFER TO VICTORIA LOAN ON SIMILAR TERMS TO QUEENSLAND ISSUE. London, October 10. It is understood that the State of Victoria is considering an American offer to underwrite a Victorian loan on similar terms to those of tho reported Queensland issue in New York. —Aus.N.Z. Cable Assn. VICTORIAN GOVERNMENT WILL STICK TO LONDON. Melbourne, October 11. The State Treasurer, Mr. W. AL MTherson, questioned regarding the possibility of Victoria negotiating a loan in America, declared that the Government would stick to London few its loans — Press Assn. PLENTY OF MONEY AVAILABLE ON SAME TERMS (Rec. October 11, '9 p.m.) Washington, October 10. The Australian Press Association learns authoritatively that Wall Street financiers, attracted by the success of the Queensland loan, are making inquiries direct as to whether any other governmental body in Australia is requiring money, since there is plenty of money available on the same terms—Aus.-N.Z. Cable Assn. AMERICAN LOAN OFFERED JOHANNESBURG Cape Town, October 10. The Johannesburg Town Council is considering an American offer for a loan of one and a half million sterling at 74 per cent. —Aus.-N.Z. Cable Assn.