LOAN FROM AMERICA.

Taranaki Daily News, 13 October 1921, Page 5

LOAN FROM AMERICA.

QUEENSLAND FLOTATION. INNOVATION DEFENDED. SYSTEM OF REPAYMENT. Bjr Telegraph.—Press Assn—Copyright. London, Oct. 11. The Australian Press Association interviewed -Air. Sheldon. London representative w Blair and Company. New York banßers, who are reported to »e negotiating with Victoria with reference to floating a loan in New York on similar term? to the Queensland loan. Mr. Sheldon refused to discuss the Victorian proposition, and refused even to admit that he had such a proposition, but warmly defended Queensland's action, although not related to his firm. He pointed out that the National City Company was an important institution with a branch in London and world-wide connections. He was of opinion that Queensland’s recourse to New York would eventuate in better results than were possible under the terms of the New South Wales Joan. Ho denied that Queensland was gambling upon the future appreciation of the exchange, unless tJie sterling further permanently depreciated. which British authorities regarded as impossible. On the other hand, if the sterling appreciated. Queensland could gain enormously when the periods of repayment were reached. Mr. Sheldon explained that there would be annual repayments by Queensland in two periods of five and fifteen years respectively during the currency of the loan as follows: During the first five years Queensland must provide annually 400,(MX) dollars as a sinking fund for the re-purchase and retirement of Queensland bonds at par or below par; during the second period, fifteen years. Queensland must provide a sinking fund estimated at 000,000 dollars annually for the re-purchase and retirement of one fifteenth of the outstanding indebtedness at or under £lO2 103. QUEENSLAND GRATIFIED. CONVERSION OF DOLLARS. Received Oct. 12, 5.5 p.m. Melbourne. Oct. 12. The Premier of Queensland (Mr. Theodore) has cabled to the High Commissioner (Mr. Hunter) the terms of the loan, adding: “We intend converting dollars into sterling, which should result in material advantage to the State. The Government is gratified at the manner in which the issue has been received in America.”—Aus.-N.Z. Cable Assn. ATTITUDE OF VICTORIA. ANGLO-AMERICAN LOAN. Melbourne. Oct. 12. Mr. McPherson (Victorian Treasurer) explains that the cable is correct in Mating that American financiers are negotiating a loan for Victoria, but that such negotiations entered into without British houses would not be carried out. EXCHANGE RATE FAVORABLE. Adelaide, Oct. 12. Mr. Miller, Governor of the Commonwealth Bank, says that, owing to the present favorable rate of exei ini’e. the Queensland loan will work out at nearly the same rate as money borrowed in England.