THE STOCK STORY.

Lyttelton Times, Volume CXIV, Issue 13891, 27 October 1905, Page 4

THE STOCK STORY.

It would have been better for bis reputation as a financial expert if Mr James Allen had left that stock story alone. The reply lie got to 'his question in the House of Representatives yesterday afternoon simply showed again how widely he had misstated the position in his address to the Ghristchu'rch Political Reform League. Apparently he expeoted the Premier to deal only with the 3 per cent Kbooke, which have admittedly declinied. by 30s since the date he selected, largely In consequence of the payment of interest at the end of last month. But Mr Seddon was far too 1 astute to merely bolster up the inventions of Ms critic. . He gave the latest quotations for the whole of the Eitocks of tho four States having tho three classes o i f securities, and to make the ho'Uowniess of the "story " clear we must repeat them:—

It will be noticed that Queensland io the only State whose 3 per cents are higher than those of New Zealand, amd that its. 3£ per cents amd '<L per oemt3 aro considerably lower than those of this colony. The object of M<r Allen's question was, of oourtse, to obtain from the Premier an admission that the hope ho expressed at Duaiedin last May that New Zealand etocks would rise on the announcement of tho year's surplus had not been real Heed. With all his attention eon'oenitriated on the 3 per cents, which ho would have had the public believe represented the whole of our securities, ho was naturally delighted by a decline in these stocks from 87$ to 86. But had he been, failhe would have given.the whole of tho figures :

We have given -Mr Allen the benefit of the decline of 5s In New Zealand/ 3 per cents between October 13, the date he fixed in his question, and Ootobea- 21, the date of the latest quotation. It wiil please him, a.nd will not affect our argument. We have explained before that, roughly speaking, ten millions of our debt are represented in 3 per cents, ten millions in 3£ per,cents, and forty millions in 4 par cents. If we adopt Mr Allen's method of comparison, than,. and extend it to all our stocks, we find that the 3 per cents have declined since May'by £150,000 and the 3J- per cents by £25,000, while the 4 per cents have advanced by £400,000, leaving a. net gain of £225,000. Our local contemporary, by the way, quoted J??ew Zealand 4 per cents in May at 105, and we ;, tdo not recollect either' Mr Alieu or Mr Charles Lewis accusing it of doctoring the figures, but We believe that our own quotation iis correct. If we accepted our contemporary's quotation it would make tho net gain £400,000 greater than we have stated it to be, .but wo prefer to be on the safe side, and to make the imfcerpretatioin! of the "story" as little unplioasa/nt as possible to the member for Bruce. Mr Seddon has set us an .example of magnanimity which we should be sorry to neglect.

8 Per cent. 8J Per ' cent. i Per oeait. N*w South. Victoria, Queensland Now Zeailait Wales id . 6G . 87 . 86 93 93 88 09i 103 103 106 107/

May 13. October 21 8 Per Oents . 87$ 86 • 8J Pear Oeate . 994 98* & Per Cen/ts . 106 107