MONETARY PROSPECTS

Evening Post, Volume CVIII, Issue 121, 18 November 1929, Page 14

MONETARY PROSPECTS

LONDON AND NEW YOBK

$ BRITISH CONVERSION LOAN

\i United Press Association—By Electric Tel«- ---.; . graph—Copyright. : (Eeceived 18th November, 9 a.m.) 1- LONDON, 16th November.

Although no announcement has yet been

}. made regarding the result of the Govern- | ment's new 5 per cent, conversion loan, I which closed yesterday, it is generally ;j- believed that cash subscriptions have been * satisfactory during the last few days. ; Prospects of easier money rates have 'i stimulated applicants, and large amounts j have been' subscribed. The position is bey ing. further helped by the reduction of A the ixew York bank rate. This has given >• rise to expectation that the Bank of Eug- * land rate may be lowered next Thursday. ■ But notwithstanding the improved monetary position, the Stock Kxchaiige has been ■i depressed, chiefly owing to the renewed ,'i -weakness of the New York and Continen- * tal.Stock Exchanges. Gilt-edged securities p alone have maintained a firm front. Ini dustrial investments generally suffered :■; from a considerable amount of forced i liquidation. This has even been the case ■'i with many stocks of an admittedly high » status, and which are usually able to i •withstand shocks which affect the more i speculative issues.

I The Federal Eeserve Bank of New York * reduced its rediscount rate from 5 per .; cent, to 4% per cent, on 14th November,

'i the lowest late since June, 1928; and call * money was then quoted at C per cent., at ;: which it ruled all day.