FINANCIAL NOTES.
There are fashions in securities as well as in garments. For some few months I have indicated the tendency for investors to seek prior-charge stocks of some of the big industrials rather than the gilt-edged group, and only last week we had on the one hand the failure (so far as public response was concerned) of the India Loan and the complete success of an issue of Pease and Partners Debenture stock, although the actual yield to the investor was slightly higher in the case of the India Loan than in the case of the Pease and Partners Debenture stock. True, the India Loan was for as much as £20,000;000 and the Pease and Partners issue was only for a million, but, whereas the rush for the latter was so great that the lists were closed within an hour of opening, the India stock lists remained open for some days, and even then the amount applied for was under i2,000,000. In both cases the duration of the Loan was much the same, and the fact that the industrial debentures were in the form of 5 per cents. at the price of 93, and the India Loan in 4f per cents. at 85, should have been in favour of the India issue. The fact remains, however, that underwriters of the latter had to take 91 per cent. of the issue, while the Pease and Partners Debenture stock was very much over-subscribed.
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