UNDUE ALARM

Gisborne Herald, Volume LXVIII, Issue 20636, 16 August 1941, Page 6

UNDUE ALARM

FAR EAST CRISIS AUSTRALIAN REBUKED STOCK MARKET REACTS (Elec. Tel. Copyright—United Press Assn.) (Rocd. Aug. 1(3 1.30 p.m.) LONDON. Aug. 15. The prominence given to Australian anxiety over Japanese actions has caused Australian Government stocks to weaken, sellers predominating. It is noteworthy that there is no similai publicity from New Zealand and that New Zealand stocks arc not affected to the same extent. Some quarters attribute the weakening to the alarming nature of the news issued in connection with the Australian Cabinet meetings. The decline in Australian stocks certainly does not accord with the prevailing market sentiment about the Far Eastern situation as a whole. Japanese stocks actually rallied moderately. Most observers do not appear to consider that the reaction of Australians warrants much comment, and seemingly are under the impression that the decline is only temporary. The Financial News says it would be regrettable if holders of Australian bonds lost sleep over political possibilities in an ocean appropriately called the Pacific. If risks exist, due to a third Power’s policy, their nature has been evident for a long time- —to be precise, since 1931. Recent events may increasingly have drawn attention to these factors, but have not changed them. Australia is as far from Japan's main bases as ever and still physically beyond effective sea and air range. Actually, Australia’s defences begin at Singapore, or the Straits of Dover for that matter.