THE FOREIGN INVESTMENT PROBLEM
Obviously from the Chancellor of the Exchequer's cryptic replies to questions in the House of Commons, White- hall has no intention just yet of clarifying its neatly expressed " hope " that investors would refrain from making investments in foreign securities. The Chancellor, presumably, prefers to leave the City in doubt over the proper construction to be put upon his words on the theory that definition would leave loopholes and, possibly, en- courage certain evasion. While I sympathise with the official reluctance to impose compulsory controls unless and until they prove unavoidable, I am still of the opinion that stock- brokers and other investment advisers are entitled to guidance in this particular matter. In the absence of any further statement from Whitehall I am bound to say that as a stockbroker I shall not feel it necessary or desirable to deter any client from making a purely speculative purchase of American shares. Short-term operations of this type are normally self-liquidating, and unless conducted on a really substantial scale do not even involve a temporary strain on the sterling-dollar exchange. CUSTOS.
(Continued on page 786)
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