FINANCIAL.

Hokitika Guardian, 12 October 1921, Page 1

FINANCIAL.

AUSTRALIAN AND N.Z. CAIILK ASSOCIATION orrcKXSi.ANivs i.oan. LONDON, Oct. 11l The hi test American advices received in Loiulon state that the Queensland loan has Ik-oii issued at New Work at a minimum pi ice of !)!>, less 1 ; per t ent for brokerage. The loan, it is stated, will work out at C 97 -Is per cent. I. will he repayable in twenty equal annual instalments. I he iate ot. tepa\ment titter tin- first five years is to lie at the rate of 10-5 per rent. exctianck a dva ntag ks. HRISHANH, Oct. 11 Referring to the successful hum *,(itation, the Premier of Queensland, lion Mr Theodore states that this is a straight out dollar loan. The litleres and sinking fund tire to he on the dollar basis. Thus Queensland has got the benefit of the inevitable improvement i" the rate of the dollar < - x ‘ change over the period ol •_(> veais lot which the loan has a currency. FTXAXCI AL COM M ENT. LONDON, Oct. 10 A high London linaneial authority points' out in regard to Queensland s {on,, that, so far from .stabilising tlm British rate of exchange with America, the loan will have an opposite etleet. Me says that, ealcuhitmg the discounts', brokerage, and other charges, besides annual repayments at a premium, and adding the interest also, Queensland will return C2.-/I eventual]v for every £IOO received. THE EXCHANGE ADVANTAGES. 1 LONDON. Oct. m The London “.Morning Post” says: U is surprising that Queensland s by rowing should have been «Km.ed Ml' Ilv when issuers are aetu.illy ollt ing bonds for subscriptions Ivpmll.' curious is a claim that the loan h.u» been issued on the dollar basis, in older to obtain the advantage ol the exchange. As the Queensland Government will convert the loan to potindy sterling, the loan will tost the hoi lowers 7 percent, and it must he paid n dollars whatever their Ptme. only possible advantage will he th. to lie derived from the recovery of Bn Hsl, currency in American oNcha.tge which will reduce the trnntml and will also lessen the cost ol tep.n H-lIU * _ .t 1.., ovr.lfimr** mil'

I'iill. Nn British colony has yet paid 7 per cent for its lotnis from Ilrilain. Meanwhile, :i firmness of America n exclianoe is ;i disadvantage to Queensland, u,s regards iiiectino London liti bilities. SIH .). COOK’S CIiITICISM. MKLPOCIIXF., 0,1. II Till- Federal Treasurer (Sir .1. Cool,) savs Ik* considers Queensland s Alncrietin borrowin': is re: l .tetl;ilile. lie yivex as In's reasons: Firstly. lieennse i( i the first lime tliat an Australian f lias cone outside the Kmpire lor fimineial accommodation ; secondly, the rate interest ivonld hi* seven per cent, tvliicn for a Government security Mould he very hit'll. PLENTY OF MON'KY. I.OXOON. Oct. I,) The Australian Press Association learns authoritatively that the Mall Street financiers, attracted hv the success of the Queensland loan in New York, arc now making ontpiiries diieei as to whether any other Clovernnii’Ut hody ill Australia' is requirin': since there is plenty oi money available in America on the same terms. It is understood that \ ietoria is considering an American oiler to iindetwrite a Victorian loan on- terms similar to those of the Queensland issue. VIENNA'S FINANCIAL PANIC. LONDON, Oct. Id The “T)nilv Chronicle’s” Vienna correspondent states that the financial panic has resumed, and customers are now stormino the shops in \ ienna. They are ivitlulrnwinji their money and bovine; food wildly under fear that the shops may run out of provisions throitoh the inability to replenish theii stocks. Now that. P-L-KMI kroner jro to the til, any people with money are bnyinp; stocks before money becomes valueless. Some ate purchasin': for a year ahead, and mam- others are lit vet ixlily purchasing; Irtincs, marks and dollats, in case kronen should become worthless. Shipping has become a bewilderin': j process, and prices may double or I treble within a few days. Many shops refuse to sell more than a certain amount of poods to one customer.