Australian Commonwealth and one of the Australian States have lately borrowed in New York has weakened still further the already weak power of supervision that was exercised over Dominion borrowing by the London market. Moreover, our Dominions have a very definite advantage over all other oversea borrowers, which will be made clear when we come to consider the question of Public Debts Abroad.
In the meantime, trustee securities have a certain prestige as such, and consequently are, like British Government stocks, a "fancy article" which many investors must have and many others think that they ought to have, because of the halo of sanctity which is believed to surround them. To the practical investor who wants to buy securities for intrinsic value only, the fact that a fancy price is put on an article by a law or convention which does not add one half-pennyworth to their security, is a reason for not buying trustee securities, unless overwhelming arguments can be produced in favour of doing so, in any particular case.
