The Express.
London, England, 1861-06-10 00:00:00

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LONDON, MONDAY, JUNE 10.

Two years ago the Indian Government created a
sew Mrs per Cent. Stock, to the amount of which
several large additions have since been made. That
further issues will tale place hereafter is tolerably
certain, for since the Sgt R/STIRT of STATE for taut♦
began to borrow in this form, he has overshadowed

the railway companies—the result being that he is
cow obliged to create more Five per Cent. Stock
in order to make advances to them. Indian rail-
ways, it is scarcely necessary to say, are virtually
government undertakings. It is just at this point
that the competition of the India Five per Cent.
Stock tells with severest force against the Funds.
The conditions of that stock have been very
shrewdly, even astutely, framed. It has ap-
parently been the aim of the Angle-Indian finan-
ciers to give it as much of the look of an English
Government security as possible without actually
committing the Imperial Treasury. They have
accordingly sailed as near to the wind es they
dared. They have assigned to the Bank of England
the whole of the business connected with the pay-
ment of the dividends and with the transfer of
stock. Let our readers procure the form of stock
receipts issued by the Bank of England respec-
tively for the India Five per Cents. and for the
Three per Cent. Consols, and it will be seen that
in form, Sae, style of printing, and in every
other respect, save in name, there is not merely
a complete resemblance, but a studied imitation.
Very likely it will be said that this resemblance
is a mere trifle, which, no more than the feet of
the dividends being payable at the Bank, entails
any obligation on the British Exchequer. But we
affirm, on the contrary, that it is no trifle to
establish, in these and other respects, strong points
of identity between the English and the Indian
Funds, calculated to have great weight with ordi-
nary investors. It is no trifle when the authorities try
astutely to throw the halo of the British Three, around

the Indian Fives. And investors do quite right
to avail themselves of the advantage which is held
out to them through what we cannot help think-
ing a lack of moral courage on the part of the
Government. The formal grant of the Imperial
guarantee being withheld, 5 per cent. must be
paid for money which might otherwise be raised
at 31. Yet the glaring anomaly remains, that
the British Exchequer escapes responsibility only
in name. Let the holders of the Indian Five per
Cent. Stock be left without their dividend, sad
where would be, not the credit of India, but the
credit of Great Britain which administers India
Capitalists, large and small, have peened these matters
in review often enough, and elect to take Indian
Fives between 98 and 101, in preference to British
Threes even at the reduced price of 90. They
would rather have 8 per cent. interest at one
counter at the Bank of England than 31 at
another. This new Indian stock, in conjunction
with other considerations, is working a complete re-
volution in the course of investment& The English
(nods are quite overshadowed, and have lost their
attraction. Indications in this sense are presented
on every side. Even 31 per cent. interest on Ex-
chequer Bills will not make those securities float,
though the CNA NetLLolt of the EXCIENOSI has
gone so far as to give the holders the option of
paying them in for taxes and duties, in lieu of
money, during six mouths of the year. It is
pretty evident that before long it will be
necessary to fund a considerable amount of
Exchequer Bills. The only real objection to
this course would seem to be removed now
that the unfunded costs relatively more than the
funded debt ; but it is believed that the CNALN.
CZLLoII of the EXCEI bent is endeavouring to avoid
the step as long as possible. With this view,
against the Exchequer Bills which have been sent
in for money he has sold a considerable amount
of stock belonging to the Savings Banks. TM
supposition is that the Exchequer Bills which have
been rejected by the public have been assigned to
the account of the Savings Banks Commissioners.
Whether the contingency of • funding can be per-
manently ►voided by these means is doubtful, for
the price of the Exchequer Bills which are left
afloat is still ate point discreditable to the Govern-
ment. The argument that neither the English
Fends nor Exchequer Bills can maintain
their ground against competing securities,
particularly Indian and colonial, yielding
much higher rates of interest, is further
strengthened by the fact that the recent rise in
the rate of interest on India Bonds from 4 to 4i
per cent. does not prevent them from standing at
a discount of to / per cent. in the market. As
long as the public can get 5 per cent. from the
Indian Government, they will not be content
with 4/j.
These are unquestionably the causes of the con-
tinued fall in the English Funds. The value of
money is not at present at an exorbitant point,
and the condition of home and foreign politic is
not more disquieting than usual, yet Consols ate
now quoted below 90. This is a degree of depression
which has never hitherto been witnessed, save under
the influence of some active alarm. At the monthly
settlement in Consols last week the supply of stock
was so large, that six and seven per cent. were
paid for loans on this three per cent. security.
The much greater relative depression of the Re-
duced and New Three per Cents, is, perhaps, a
still more striking fact. These stocks were quoted