DOMINION SCRIP IN LONDON

Southland Times, Issue 24773, 18 June 1942, Page 5

DOMINION SCRIP IN LONDON

Lack Of Confidence Deplored (Rec. 6.30 p.m.) LONDON, June 16. The Scotsman, in a leading article, urges the British Treasury to take action to strengthen confidence in Dominion securities. “At a time when there is much talk about unification of the currencies of the United Nations or at least a currency union between the British Dominions and the United Nations, _ it seems a poor reflection upon war-time financial planning that financial relations between the members of the British Empire should not be closer. The Government of India set the example by announcing its intention to stand behind municipal and other semi-official securities. The result has been an immediate advance in the prices of these stocks. Why should not this principle be applied between Britain and the Dominions? “Financial circles may be completely confident in the indivisibility of the Empire’s finances, but the general body of investors and holders of stock of the Dominions directly threatened as a result of Japanese aggression do not share this confidence. For the first time since the Pacific has been involved in war New Zealand stocks a few weeks ago showed signs of unfreezing and buyers appeared for nearly all the

stocks at slightly above the minimum prices, but the improvement has not lasted. Australian stocks are more firmly frozen than those of New Zealand and the securities of both Dominions at present can be regarded as approximately equal in merit. “It seems ridiculous that the credit of the great Dominions as measured by the prices of their securities in London should have a standing on an inferior level compared with the stock of a badly bombed municipality like Plymouth. Such would not be the case if the Treasury indicated that it was directly interested in the care of the Dominions’ finances. Meanwhile, for want of nothing more than a reassurance from the Treasury, investors fight shy of the great Dominions’ securities, prices for which have fallen to levels giving Axis propaganda a chance of claiming that Empire finances are disintegrating?’