THE TRUSTEES' LIST.

Evening Post, Volume LIX, Issue 127, 30 May 1900, Page 4

THE TRUSTEES' LIST.

The conditions upon ■which the longsought concession of admitting to the Trustees' List of Securities colonial stocks are published in the Australian papers, and briefly they are as follows : — (1) That the provisions of the Colonial Stock Act have been complied with as regards every scurity to be included ; if not, that the colony will at once introduce legislation necessary for complying with said Act, which will be amended to admit application to existing securities ; (2) that the colony will legislate for payment from local revenues of sums judged by English Courts to be payable to stockholders, and that adequate provision will be made in England by guarantee of a financial house of high standing or by other means of payment of sums judged due ; (3) that colonial Governments place on record a definite opinion that any colonial Acts in the opinion of the Imperial Government altering the provisions now required, injurious to stockholders, or otherwise altering the original contract as regards inscribed stocks, would he properly disallowed. These conditions have been submitted to the colonial Governments for consideration and acceptance, and it is notified that they have been accepted by the Canadian Government. At present only those securities the issue of which has been directly sanctioned by the British Parliament are admitted to the list, and then only those securities which have secured the confidence of the public by regularly meeting their obligations in full for a number of years. In extending the privilege to colonial inscribed stocks it is natural that conditions should be imposed to safeguard British investors. The colonies cannot expect to have an unrestricted right to have their inscribed stocks listed, because it is within the region of possibility, though it is by no means probable, that a State may outrun the constable by reckless borrowing, and become a defaulter. The conditions named above do not .specifically impose any restriction upon borrowing, but the power reserved to the Imperial Government of disallowing any Colonial Act which is injurious to stockholders may be construed into an admission that limitations may be placed on the borrowing propensities of Colonial Governments. It is hardly likely that any open action will be taken at any time by the Imperial Government to stop a colony borrowing in London, but indirectly, and under cover of the Taxation Commissioners, such restriction could be effectively imposed. The issue of inscribed stock involves compounding with the Taxation Commissioners for the surrender of stamp duties upon transfers, and the Taxation Commissioners consequently have power to limit inscriptions. Inscribed stock is issued under a contract entered into as a whole ; it is the highest form of securi ty, and carries the right of appeal to the British courts should any breach of the contract occur, and hence it is necessary that provision should be made to satisfy the judgments of the courts. There is nothing irksome in the conditions so long as the borrowing powers of the colonies are in. no way restricted. Since Canada has accepted the conditions Juid down by the Imperial Government v.o may regard them as fair and equitable.