BETTER BUSINESS

Dominion, Volume 24, Issue 221, 15 June 1931, Page 9

BETTER BUSINESS

All-round Firmness in Stock Market POLITICAL OUTLOOK By Telegraph—Press Assn. —Copyright 0 (Rec. June 14, 5.5 p.m.) London, June 13. The Stock Exchange has assumed a decidedly brighter tone. Although the German news is disquieting most markets have shown firmness. According to some newspapers, one of the chief influences operating is the growing hope that the MacDonald Government will be defeated next week, and that an immediate dissolution will follow. On this assumption there has been a considerable amount of “bear” covering, especially in home rails, which has sent prices up all round. Australian Stocks. Gilt-edgeds, of course, participated in the upward movement, and a most satisfactory feature was a further improvement in Australian stocks, which have been consistently moving higher from the moment it became known that the conversion loan was to be on a voluntary basis. On this subject “The Economist” writes: “There is no doubt from the standpoint of Australia’s credit that the decision is a wise one. . So, too, is the determination to press forward with other economies, for in addition to the direct and substantial contribution they will make to the rehabilitation of national finances, they will remove any fear that the bond-holder is being singled out for special treatment. i United National Effort, “The news that the Opposition is now co-operating also is encouraging, for it holds out the hope that Australia is now on the threshold of a united national effort. Once assured of this the City will be eager to render Australia all possible assistance. An indication of the improvement in financial conditions . may be found in the renewal of activity in the capital issues week. In addition to the New Zealand £5,000,000 loan issue, £3,000,000 in debentures for the Buenos Aires Great Southern Railway has been arranged, and an issue of about £5,000,000 by Woolworths.