SYDNEY LOAN

Gisborne Times, Volume LXX, Issue 11125, 7 February 1930, Page 5

SYDNEY LOAN

SUM BELIEVED TO BE FIVE MILLION DOLLARS.

MAY RETURN PURCHASER SIX PER CENT.

Unites Press assu. or Cl- Tel. Coavrianr (Received Feb. 0. 7.5-5 p.m.) NEW YORK. Feb. 5. It is understood that the Sydney loan negotiations are for the sum or five million dollars. The terms and rates are said not yet to have oeen agreed upon. It .is wholly‘conjectural. but there is good. reason to believe that the bonds will bear a o per cent, coupon, and will be sold at a price which will bring the purchaser 6 per cent. The reeling ni Wall Street is that, sine© Sydney never has entered the local market before, and due peculiarly to the bearish news from Australia recently. underwriters will be compelled to offer securities at- attractive prices to assure their quickly being bougnt up. Expressions in tbe bond market here generally, and foreuin issues particularly, makes this even more certain. One well-informed banking statistician stated that Sydney authorities probably well realised this —even before deciding to enter the local market. It k understood that Mr. .T. B. "Were, of Alelbourne. is handling the Australian end ol the negotiations. United Press Assn, by El. TeL Coprriffh - . SYDNEY, Feb. 5. An awkward situation arising from financial stringency is facing the State Government. Tin’s .is . the possibility of being required. to pay a £50.000 jxmalty for failing to complete a contract with Iloskins Ltd. to construct tbe Port Kem-ble-A loss Yale railway lino, which should lay finished this month, but it is unlikely to be completed before the end of* the year. The State Treasury hopes to settle the difficult v.