A propos of the low price of Consols, supporters of
Mr. Lloyd
George lay stress on the fact that foreign securities have also fallen in the last fifteen years, but, as Sir F. Banbury points out in a letter to Wednesday's Times, the real question is whether they have fallen in a less proportion than Consols. We have no wish to exaggerate the significance of these figures, and do not forget that the interest on Consols is only 24 per cent., but the comparative table for the last two years is certainly instructive :-
"Mr. Lloyd George was appointed Chancellor of the Exchequer in April, 1908. On the 4th of that month—
Consols were 874 ; on the 23rd of this month, 81
French Rentes, 96IP 974 German, 804 PP 824 Japan, 4 p.c., 80} PP 964 Russian, 1906, 944 IP 1051 Italian, 102 PI 1034 So that, while Consols have fallen more than 6 points, every other foreign security of importance has risen."
The chief cause of the fall is unquestionably the last phase in Liberal finance, involving as it does expenditure so profligate
that money cannot be found for reducing the National Debt. What in the past has maintained our national credit at so high a pitch has been our habit of paying off Debt every year.
Previous page
