THE INVESTORS' STANDARD.

Auckland Star, Volume LXII, Issue 39, 16 February 1931, Page 4

THE INVESTORS' STANDARD.

INDIA AND AUSTRALIA POLITICAL REACTIONS.

| Writing editorially on the recent slump • in Australian Government securities on • the London Exchange, the "Christchurch Press" contrasts the position of Commonwealth credit as compared with that of India. Cash subscriptions for a £12,000,000 issue of 5% per cent stock at' 97 for India were invited, and the lists were closed, fully subscribed, within two hours. The return on this loan, at the price, would be about £5 13/6 per cent. The return on soine of the Australian stocks may be set out as follows:— Stock. Price. Return. £ s. a. Commonwealth, 5 p.c. 66 (76) 7 11 6 Commonwealth, 6 p.c. 78 (80.5) 7 13 10 Victoria, 5 p.c 62 (69.5) 8 13 N.S.W., 3J p.c 40 (48) 8 15 0 N.S.W., 52 p.c 77 (80) 7 9 4 N.S.W., 6 p.c 77 (80) 7 15 10 Queensland, 5 p.c. .. 60 (69.5) 8 6 8 The prices in parentheses are those obtained in dealings immediately before the latest setback. Commenting on these figures the "Press" continues: Now, while the returns show that the investor rates Australian much below Indian security, •hiu judgment is at first glance surprising. The political condition of India is unsettled, the outbreak of large disorder is possible, taxes are hard to collect, and trade is depressed by the boycott. But the investor has steadily refused to consider investment in India as risky. The success of the present flotation merely repeats that of another, some time ago, before political hope had been raised by the Round. Table Conference. And the difference is broadly this, that the investor regards the British Government and the Government of India as wholly trustworthy protectors; not so the Commonwealth Government and the New South Wales Government, at least. This standard is unquestionably just, and tire Australian politicians might study it with advantage. Instead, Mr. Theodore affronts the British 1 bondholder by declaring that his five per cent hag swollen into eight, which, if the bondholder is the original purchaser, is simply, untrue, or, if he has bought at the depressed price, does not load the Commonwealth with one extra penny; and Mr. Lang would tear up the bond. It is true that India talks repudiation; but there the repudiationists are not the responsible, statesmen of the country, as in Australia;