LOANS ABROAD.

Taranaki Daily News, 17 October 1921, Page 5

LOANS ABROAD.

NEW YORK OR LONDON. VENTURE OF QUEENSLAND. “MOST EXPENSIVE ISSUE.” By Telegraph.—Press Assn—Copyright. Received Oct. 16, 5.5 p.m. London, Oct. 15. The Financial News welcomes the announcement of Sir Joseph Cook (Australian Finance Minister) that the Commonwealth’s £5,000,000 loan will be floated in London. There appeared to be some disposition to believe that Australia would make the question of borrowing in London or New York a party issue. Admittedly neither the Commonwealth nor any State Government is tied to London; it is open for them to borrow elsewhere on better terms if they can.

It has been asserted that money can be obtained more cheaply in New York at the present rate of exchange, but, on the contrary, Queensland’s New York loan was the most expensive Australian issue yet contracted. There could be no greater mistake than to suppose American investors would be less critical than British of measures they might consider repudiatory; they would he much more critical. Australian credit depends on Australians themselves, and the Commonwealth’s credit stands higher in the London market than elsewhere.— Aus.-N.Z. Cable Assn.