MARKET FOR INVESTMENTS.

Evening Post, Volume CII, Issue 33, 8 August 1921, Page 10

MARKET FOR INVESTMENTS.

(ONiTO PRESS ASSOCIATION.- 1— COPIMGHT.)

(AUITRALIAN • NtW ZEALAND CAILI ASSOCIATION.)

. LONDON, 6th August. A holiday feeling pervades the Stock Exchange, and what, little business is passing is confined almost entirely to investment stocks, which are very firm. The new colonial loans are all strong and likely to remain so until the Government removes the embargo from new issues. New Zealand 6 per cents. ■ are now quoted at 72s- 6'd premium. Business in industrial stocks is veryslack, 1 but the tone of the market is good, the few changes in quotations being mostly upward. The announcement- of the Prime Min-. ister's Economy' Committee has not aroused much enthusiasm on the Stock Exchange, whose members are mostly sceptical regarding any benefits likely to accrue therefrom. They consider that the committee's appointment indicates that the Treasury's circular of last May, urging Government Departments to economise, < has failed to achieve its purpose. TIGHTNESS INCREASING. The conditions in. the money market have become tighter. There has been a considerable demand for accommodation in Lombard-street,,with a hardening of -rates,' and there seems little prospect of a further reduction in the bank rate, at any rate for the present. Some people express the opinion that the present rate will be the/lowest for a year. . \ \ The foreign exchange market has been unusually quiet. The only notice--able movement 'is an improvement in the dollar exchange to 3.60 dols., for which the market cannot account, the only suggestion being that the jump is due to the remittance to ' London of funds held in New York on reparation account. I