MONEY AND PRICES

Evening Post, Volume CVIII, Issue 118, 14 November 1929, Page 12

MONEY AND PRICES

FALL IN INVESTMENTS

SENSITIVE SHAREHOLDERS

'Evening Post," 14th November.

The Australian investment market immediately responded to the recent movements in the Bank of England rate and at a slightly longer distance to the upheaval to the Wall Street Stock and Sharemarket. There .was a recovery in values in Australian listed shares on the announcement of the bank rate being fixed at 6 per cent., but a further check was experienced in the announcement of the Commouwealth .£10,000,000 local loan and its attractive rate -of- 5% per cent, issued at £98, and the short term of five years. This loan showed further indications were necessary that the rate of money continues high in Australia with no suggestions of its ruling lower, with the inevitable corresponding effect of cheapening the prices of investments. • ■

But there is a monotonous .tone in. the annual reports of so many Australian companies of reduced profits and substantial losses, and this is naturally having a depressing effect on the market. J. B. Were and Son, the well-known Melbourne financial firm regarded the overseas investment as clearing, with special reference to the disturbances in Wall Street and all that it connotes. But since Ist November, when Were's comments were made there have been waves of excited buying and selling, the bulls roaringj the bears growling.