DIFFICULT WEEK.

Auckland Star, Volume LXX, Issue 78, 3 April 1939, Page 9

DIFFICULT WEEK.

MARKET REACTIONS. Chamberlain's Pledge Causes Hardening Of Prices. WALL STREET'S BREAK. United Press Association.—Copyright. (Received 11.30 a.m.) LONDON, April 2. One of the most difficult weeks since the September crisis closed with Mr. Chamberlain's pledge to Poland. The first market reaction was a general hardening of quotations. News of Wall Street's bad break arrived too late to affect London. Reports from America are most discouraging. The motor car output is declining, and business and rail indices are lower. Wall Street, moreover, takes a more serious view of the international situation than Throjr»»orton Street. Revenue returns were also announced after the closing of the markets, but the position is not worse than was expected. The total revenue was £927.255,000. which is £17,304,000 less than the estimates. Expenditure was £939,998,000, which is £11,726,000 under the estimates. The "Financial News" estimates that the total expenditure for 1939-40 will be at least £1,300,000.000, and the revenue between £925,000,000 and £940.000,000. This may create a near inflationary position. The money market's reaction to the international tension caused the Treasury bill rate to jump from 10/11: per cent to £1 5/6. the highest level since 1932. Clearing banks are reluctant to buy bills owing to a desire for liquidity, but there are no signs of any precautionary calling in of funds. Commodities, except cotton, are featureless. Foodstuffs similarly are idle, as buyers appear not anxious about the adequacy of supplies even in the event of war. Butter is easier owing to lack of inquiry, and trading from hand to muuth. There is little possibility of

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