IMPROVING MONEY MARKET.

Auckland Star, Volume XXXIX, Issue 69, 20 March 1908, Page 5

IMPROVING MONEY MARKET.

(Received 9.29 a.m.) LONDON, March 19. The Bank of England rate was reduced to-day to 3 per cent, while Consols advanced to £87 7/8.

Once the pride and the glory of the London Exchange, this world-famous security of Consols, has oi recent times obtained a character for violent variations v\hK-h threaten its status as the 'giltiest of the gilt/ Since March 7 quotations have declined by no less than £1 10, . It is interesting, says a contemporary, to follow the fortunes of Britain's best bond, as the alliterative advertisement hath it, since the gloomy and despondent days of last November, when brokers were offering Consols at 80i,»a quotation which represented a fall of £30 m comparison with the palmy days of 1895. During December quotations snaillike went to £82 12/0. whilst January saw prices bound from £33 17/6 to £86 15/, the movement being accelerated by an easier money market. In February £S7 7/6 was paid, and high watermark touched on sth March, when £88 5/ was quoted. A week later quotations broke by £1. and to-day's cable records a further fall of ten shillings. The cause of the decline may not improbably be found in the rush of speculators for the rise to take what profits they could. There has been, of course, a demand on the part of investors for the stock. But for one genuine buyer there have been scores of the other sort. So long as quotations -were moving upwards operators for the rise were gallant enough. But there comes a time in all speculative transactions, whether scrip or real estate, when the deal cannot be passed on at a profit. This has evidently happened in the Consol market. Naturally, each operator opines that it will be the other fellow's obsequies, not his own.