COLONIAL STOCKS

Dominion, Volume 9, Issue 2685, 3 February 1916, Page 6

COLONIAL STOCKS

A FLUCTUATING MARKET. , The Minister of Finance, tho Right Hon. Sir Joseph-Ward, made some interesting .comments yesterday with reference to the cable message, published yesterday, morning, showing a depreciation in the market quotations for colonial stocks.

"This is, I think," said the Minister, "due entirely to the dislocation of the investment markets caused by thelarge amounts of money paid into Home war loans. It does not signify that there is any less value in the securities of tlie oversea Dominions' stocks mentioned in the return published. There can be very little doubt that at the moment in the Old Country stocks that carry from 3 per cent, .to per cent, interest are bound to depreciate 'on, .the■_market,'for the reason that the moneys ..that are required for Imperial and local purposes, bring.rates running from 5 per cent, to 5i per cent. Naturally, while that continues, it follows that the overseas stock bearing a lower rate .of interest will not be sought after. I think' it was generally anticipated in financial circles that a fall was bound to take place, and the position can only be expected to readjust' itself by restoration after the war to the normal position which obtained prior to the war. There may be, and possibly will be, fluctuations in the interval, but so long as are obtainable at home at a rate of interest' much higher than the interest paid upon Oversea Dominions' stocks the market in the latter must be limited unless buyers are going to get a bargain at the reduced prices. But it seems to me that no one who can afford to hold Oversea Dominions' stock is likely to make many sales upon a low marke.t,; the causes of the depreciation being >; recognised to be en-tirely-duo to tile-unparalleled war which is raging." '" •