STOCKS AND PRICES

Evening Post, Volume CVII, Issue 127, 3 June 1929, Page 12

STOCKS AND PRICES

EFFECTS OF ELECTIONS

PRICES MARKED 'DOWN

United Press Association—By Electric Telegraph—Copyright. (Received 3rd June, 9 a.m.) LONDON, Ist June. - For the past ten days conditions on the London Stock Exchange have been very unsettled. The General Election, the uncertainty regarding the reparations question,- arid the slump in Wall street have all tended to restrict business and cause dullness in most markets. On Friday t morning came the news of the King's illness, which increased the depression; and naturally things did not improve as the day wore on and the Socialist successes at the polls became more pronounced. Even report^ of agreement being reached &t the' Reparations Conference failed to improve matters,: but: though prices were marked' down all round, declines were only small and sales were very few. =In regard to the future the "Morning Post's" financial editor writes: "The next, few daya are likely to be characterised by great restraint in Stock Exchange dealings, and even if favourable reports that agreement has been reached at the Reparations Conference should be confirmed, it is doubtful whether, in. the present temper of the markets, much effect is likely to be produced thereby^ The effect of the political landslide here upon foreign markets has yet to be gauged, while a truer test of market conditions will be applied when investors all over the country have had the week-end in which to consider the possible effect of the accession to strength of the Socialist Party." _ Another financial editor writes: "There is a general feeling in the city that we are confronted with a new and difficult situation, one effect of which; will probably be-to restrain all kinds of activity for some little time to come. With ! fairly strong opposition the city may not be immediately fearful of any violent Socialistic legislation. On the other hand. J the hopes which had been entertained during the last few weeks that the return of a Conservative Government with a working majority would ensure a rapid stimulus to trade activity throughout the country, have to be abandoned for the present; while inactivity on the Stock Exchange usually 1 means a falling rather than a rising in the prices of securities."