AUSTRALIANS RALLY.
Not the least interesting feature of the past week has been the pronounced rally in Australian Government Stocks. In some quarters the rally has been described as premature, that view being doubtless based on clear recognition of the fact that Australia has to solve many difficult financial and economic problems before the exchange crisis has passed. It has to be remembered, however, that the fall in Australian securities hes been very severe, and in several of the stocks, which are Trustee Issues, the flat yields to the investor are nearly 6 per cent., and in one or two cases, when allowance is made for redemption, the yield is nearer to 7 per cent. It is scarcely surprising, therefore, that the bargain hunter should lately have been in evidence, and, moreover, the hopes of holders of Australian securities were quickened a week or two ago, when it was learned that Sir Otto Niemeyer, of the Bank of England, had accepted an invitation from the Australian authorities to proceed to Australia, and confer with them concerning the economic and financial situation. During the past few days there has also come welcome news of much needed rains in some of the districts where there has been a drought, and, moreover, there has also been some slight improvement in the price of wool. These influences have combined to direct the attention of investors to some of the Australian Loans, and, so long as there is no attempt to rush up prices, a moderate rally is, I think, justified by all the circumstances of the ease.
* * * *
Previous page
