The Queensland Loan.

Hokitika Guardian, 13 October 1921, Page 1

The Queensland Loan.

the loan defended. ACSTIt \ 1,1 AN AND N.Z. CAltl.lt ASSOCIATION. LONDON. Oct. 11. "I'll,. Australian Press Association agent 10-io lias interviewed Air Sheldon. Hie London representative of Blair and Company, the New York hankers, who is reported tn lie negotiating with Victorian loan in New York on similar terms to Queensland. Mr Sheldon re. fused t-o discuss the Victorian proposition.. lie refused In admit that he lanl made such a proposition. Mr Sheldon warmly defended the wisdom of Queensland action. Although the firm that Hunted the latter loan is not related to the firm Hint Mr Sheldon represents. Mr Sheldon pointed out that, the firm in question (The National CTt-v Company) H an eminent financial institution, with n branch in London. It has world wide connect ions. Alt' Sheldon is of tho opinion that Queensland's recourse to New York will eventuate in belter results than any that are possible under

the terms of the New Smith AVales loan just, floated in London. Mr Sheldon denied, that Queensland was gambling upon ihe future appreciation of the British exchange. This could not be said unless British sterling became further and permanently depreciated. which lm pointed out, tho British authorities regarded as being impossible. Ml! THEODORE PLEASED. LONDON, Oct. 11. The Queensland Premier, Air Theodore. has cabled to Mr Hunter (Agent General) the terms of the Queensland loan floated in New Turk. Air Theodore adds: “Wo intend converting the dollars into sterling, which should result in a material advantage to our State Government. We are gratified at the manner in which il has been issued in America.”

Cum- hiding his remarks. Mr She'd-m said that, on the other hand if sterling, instead of depreciating, begins lo appreciate. tlien Queensland would enormously benefit when the periods of loan repayment are reached. Mr Sln-ldon explained that there would In- annual repayments hy the Stall- of Queensland, in two periods, of five and In years respectively, during tin- currency of loan as follows: - (I). During the first five years, (.hireuslnnd is lo provide annually four hundred thousand dollars sinking fund for the repurchase and retirement of the Queensland bonds al par, or below par. (2) During Ihe second period, of 15 years. Queensland is to provide a sinking fund estimaied at six hundred thousand dollars for the repurchase and retirement of one fifteenth of the outstanding part, of the loan, either at, or under 1025,