CONFIDENCE RISING

Ashburton Guardian, Volume XLIV, Issue 10002, 24 December 1923, Page 5

CONFIDENCE RISING

IN BRITISH FINANCE. NERVOUSNESS GOME. ENTERPRISE ON 'CHANGE.

(.Per Press Association, Copyright) (Received This Day, 9.00 a.m.) LONDON, December 22. For ten days following the elections the Stock Exchange was in a decidedly depressed condition. Many people, alarmed at the possibility of a Socialist Government, hastened to liquidate ! their holdings, with the result that prices all round were marked down severely, especially in the gilt-edged group. It is reported that half a million of the recently-floated South Australian loan was sold in a single line. This caused its price to decliue to 2 1-8 discount and brought about weakness in other colonial stocks. But during the past two days there have been distinct 'signs of improvement due, to some extent, to bears covering, but also to corisiclerable buying for investment' by large institutions, which have taken advantage of the low prices. This has improved. sentiment all round, and brokers generally have been advising clients not to get rid of sound securities in a panic but to await the course of events. Another influence making for improved conditions was an. announcement of the names of the British representatives on the Reparations Committee of Inquiry, for the city has confidence in the efficiency and energy of these men. The fall of the French exchange to a new low record of 86.4-5 to-day is disquieting, especially as it comes at a time when there is a very distinct improvement in the relations between the Allies and the 'Tmfccu States on the subject of reparations. The decline is probably due to some nervousness regarding- France's financial position arfsing out of the Government's decision to repay only 800 million francs of its advances from the Bank ot France instead of 2000 millions. Prance seems unable to balance her Budget and continues to add to her debt" While these conditions remain there can be no real recovery in French currencies,. _. Tn a'review of thenar's trade Sir Peter Rylands, ex-president _of the Federation of British Industries, says. the past twelve months, have been a disappointing period for British industry