4 JULY 1931, Page 40

It is hardly surprising, perhaps, that Indian Government Stocks, after

a sharp spurt on the sudden announcement by Mr. MacDonald, in the House of Commons last week, with regard to the policy of the Government, should have since reacted. For it was quickly perceived that the statement in itself revealed a serious position in India. The Government probably has now no other course than to take very special measures to safeguard Indian credit, but the City feels very strongly that while such safeguards are being exercised, there is an imperative call for co-operation on the part of India

herself or the task may become a heavy one. * * * *