Page 207 - clra62_0019-(GIPE)

CONSOLS IN A GREAT WAil 199
may call the present corner must disappear. That
premium would seem to be from 5 to 10 per cent. in
amount, which may be considered an extra premium
not indicating any special credit which the English
Government has, but merely the special conditions
which have made Consols scarce; when the stocks
become abundant again all this premium will disappear,
and the price of large new issues will be determined
by the circumstances of tpe issue and the general state
of credit. The English Government wjJl still hold a
premier position, but it would not be more than a
shade better than other first-class borrowers. In the
event of a first-class war, in fact, English Govern-
ment securities stand to lose .not merely the 15 per
cent. which is likely to occur in all first-class securities,
but the extra premium of 5 or 10 per cent. which has
come about in consequence of the corner in Consols.
This being the position, what may be considered,
apart from Conso}s, the general level of credit at the
present time? I have to submit the following short
table, showing the prices of the leading first-class
securities:
Price.
French 3 per cents. . 101
German " • 9 0
United States 4 per cents. 130, equal to 3 per
.. cent. at 98
Russian 100, equal to 3 per
cent. at 75
New South Wales 3 per cents. • . • 101
Indian Government Il per cents. (gold) 94
Canadian 11 per cents. . . • • . 9 1
Metropolitan" •...• 97
London County Council Il per cents. 95
London and North-Western Railway
3 per cent. Debenture Stock. . . II J, equal to II per
cent at 9:Z}
Great Western -I per -cent. Debenture
Stock • • • • • • • • • •
F rom these figures we may consider that the general
level of credit at the present time is represented by the