PRODUCE AND MARKET REPORTS FROM DAY TO DAY

Evening Post, Volume CXIII, Issue 61, 14 March 1927, Page 11

PRODUCE AND MARKET REPORTS FROM DAY TO DAY

THE MONEY MARKET

BANK RATE STANDS FIRM POSITION OF NEW SOUTH WALKS. (United Press Afsociatio-—Copy right. I j (Received 14th March, • 9 a.m.) LONDON, 12th March. The Stock Exchange is passing through one of its quite periods, business in most departments being on a small scale. There was some activity in gilt-edged securities last week, but.the sudden tightening of the money rates stopped this, and caused some contraction in prices, net Consols going to % per cent, discount; Previously there had been some talk of an early reduction in the bank rate, but once again this seems to be premature; and is money rates on the otlifc side of the Atlantic have hardened,' there does not seem to be any justification for lowering the. Bank of England rate of ■ 5 per cent, at the present time. Some, financial newspapers are 'talking about the .probable early isau'e of a Commonwealth loan, but from the best 'informed monetary circles, it is learned that this is unlikely, and conditions remain exactly as cabled a fortnight ago.

What was cabled a fortnight ago was to the effect that nothing hid been done regarding the Commonwealth's large conversion _operation or regarding one or two Australian. State flotations, and in the then position cf the money market they would probably be deferred for some time Repayment of the Commonwealth maturing loan of £12,750,000 is. not due till Ist June, and it seemed—a . fortnight ago—as it it would! wait till financial conditions improved, as they were expected to do in April if not earlier. . ■