AUSTRALIAN STOCKS.

Auckland Star, Volume LX, Issue 246, 17 October 1929, Page 7

AUSTRALIAN STOCKS.

POLITICS AND FINANCE. (Australian and N.Z. Press Association.) LONDON, October 16. .The "Morning Post's" city editor contrasts the strong tone that hat* characterised all high-class investment securities in the past few days owing to the improvement in the general monetary situation with Australian stocks, which are heavy and dull on the prospects of a Labour Government. In the large majority of cases the fall in stocks has not been great, says the Ttriter. This is partly because general influences are favourably affecting the investment markets and partly because prices had already fallen to a low level. The present prices, allowing for accrued interest, mean that the premier »tocks of Australia give a yield of fully £5 7/ per cent without allowing for redemption. Needless to eay the city is not concerned with Australia's politics, but unfortunately the evidence shows that excessive expenditure by the Australian States and Federal Government in the past can for the most part directly be traced to Labour's policy and Labour's agitations. The Economic Mission to Australia, continues the writer, referred in no uncertain terms to the vicious circle of increased prices due to the tariff and to the incrmased costs of labour owing to Arbitration Court awards. It is scarcely surprising that financial circles are concerned lest the tendencies which have been responsible for the unsatisfactory condition of Australian finance in past years should receive a further impetus.

It must be hopprl that a recognition of the care needed to safeguard Australia's credit will exert a moderating influence on the next Government. It i 3 only fair to recognise that much of Australia's debt has created valuable assets, Anxiety in the city centres rather upon tendencies which affect the costs of production.