The Feilding Star. SATURDAY, JULY 7, 1888. Why?

Feilding Star, Volume IX, Issue 145, 7 July 1888, Page 2

The Feilding Star. SATURDAY, JULY 7, 1888. Why?

The following telegram, which has already been published in our columns, is one of thoae peculiar messages which is difficult to understand or believe either from the apparent silliness or untruthfulness it bears on its face : — "In the Lords, Lord Herschell stated he was quite willing to propose a new clause to his Liability of Trustees Bill, providing that the trustees should be permitted to invest fuuds in colonial four per cents, when the price of stock had reached 105, and in three and three and a half per cents, when equivalent was reached." Looking at it from a common sense stand point, this may mean that when j the speculators — or gamblers — on the Stock Exchange for their own purposes run up the prices of colonial 4 per cents, until they reach 5 per cent., more than their actual value as represented by the cash to be paid when the term of the stock has expired, then, and then only, may trustees invest funds in them. If Lord HerscHELii thinks because stocks are quoted at a premium of one-twentioth I of their whole value, they are likely to remain at that for a term of years, he has had iittle experience to guide him in forming his opinion. The same causes which have operated in raising the stocks, will also effect their depreciation down to par, and below it, when those astute financiers who pull the 6trings think it necessary for their own ends a fall in values should take place. If fiduciaries were allowed to speculate with their trust monies for the benefit of themselves, or the persons for whom they hold their i trusts, some restriction of the kind indicated might be excusable or necessary, but as we know they are ! already prohibited by law from so doing, there appears to be no necessity for further legislation in that direc tion. If Lord Herschell is desirous of elevating the values of other securities at the expense of those of the less foi'tunate colonies he is departing from the traditions of his high office. He eurely cannot desire that the widows and orphans whose patrimony has to be so invested as to insure their incomes against probable loss, should be mulcted of one-twentieth part of their whole capital, and consequently onetwentieth of their anuual receipts for the benefit of stock gamblers and others of that ilk.