FIXATION CRITICISED

Auckland Star, Volume LXXI, Issue 70, 23 March 1940, Page 4

FIXATION CRITICISED

MINIMUM STOCK VALUES. "WAVERING OF CONFIDENCE/' AL'STJJAMAX ISSUE SUFFERS FIRST (Keeeived 11.30 a.m.) LOXDOX, March 22. The ill-tiuictl fixing of new* official minimum market prices for Government stocks killed any prospect of the new war loan opening at a premium. The public construed the authorities' action less as a safeguard against depreciation than as a preparation for some imminent coill i ngency. The fact that the initial announcement covered only IS British stocks—implying a hasty decision and an urgent need for publication—encouraged unfavourable interpretation. The sudden wavering of confidcnce affected all investment sections. Australian stocks suffered first in the general decline, for the year-old 3 1 /-: per cent, war loan lost its recent hold on par. Gilt-edged stocks generally finished a half to one point down, with the new war loan at one-eighth discount. NEW QUOTATIONS. DOMINION-AUSTRALIAN ISSUES. STOCK EXCHANGE'S DECISION. (Herd veil It a.m.) IvOXDOX, March 22. The London Stock Exchange official list reveals tfiat the minima for Australian and Xew Zealand securities has been substantially raised. The new minima are:— Commonwealth. 1015-7."i, £101 : Commonwealth, J. 10-13-IS. £00: Commonwealth, -u. tOIS-r-O. i'Oo; Commonwealth. IOoIJ-01, £SS; Commonwealth, .'I. 1000-.tS, £S5: N.S.W., inriO-00. £03: Vietorhi. IH2SI-IH. £02: Victoria, 47. 10-10-UO. £00: Victoria, r», 1 run-7,1. £101: Queensland. '1. 1022-17. £03: Queensland. 10Km;0. £100: South Australia. •">. 10H5. optional. £70: South Australia. IOI.VTo. £JOl ; We.-t Australia. -1. 1012-02. £0S: .New Zealand. 4J. 10IS r»S. £08: New Zealand, 33. 1010, £0S; New Zealand, 3, 1015, £03. A cable message on Tuesday announced that the committee of the Loudon Stock Kxchanjre had lixed new higher minimum prices for certain securities, and the new minima for the Dominion's stocks would l»e arranged in a few days' time. To-day's cable gives the quotations which have been decided on. Speaking in the House of Commons the Chancellor. Sir John Simon, welcomed the action of the Stock Exclunm''. slating that the new quotations for JJritish issues now bore a closer relation to the existing prices than those fixed at the outbreak of war. The action might be taken as the desire of the authorities concerned to co-operate in a policy of maintaining interest rates at the present level.