FLOW OF GOLD

Evening Post, Volume CXII, Issue 47, 24 August 1931, Page 10

FLOW OF GOLD

INCREASED NOTE ISSUE POLITICS, STOCKS, SHARES ■ (Received 24th August, iO a.m:) ■■' ....:■ LONDON, 22nd August. ■ The'decision to extend the increase of the fiduciary note issue by £ 15,000,000 j fdr- a further three weeks meets-with ■ general approval, for although the position as revealed by the Bank of r £hgland: return would be quite gopd in ordinary times, .'. yet it must be remembered that -world • conditions are still very unsettled. -.. ~-.. . . ~' .' ,-..; :.: .'.-■• '. As-the "Financial: Times" says, one indication of this is that the leading foreign exchanges tend: to move very little away from the gold export points. Just, lately the Bank of England has beep gaining gold on balance, but this has ;beeri due mainly to fortuitous /arrivals,, a repetition of which is either impossible or by no means certain. ■ Shipments-of gold from South African mines' have mostly gone to the Continent, and until the bank is able to once again replenish its stocks, either from that source or through' appreciation of- sterling, the position must' be, ' carefully watched. ■'.''■ UNCERTAINTY RETARDS BUSINESS. "Business, on the Stock Exchange, has been hampered by the uncertainty regarding. thiß ? Government's economy plans. The volume of business passing is small. The different markets are. affected by the various'; rumours current from time to time regarding : ;the Governnierit's intentionß.Thus gilt-edged securities are disturbed by reports that a tax ivould be imposed on fixed-.mterest-bearing stocks, but these shbtred. some- improvement yesterday af- . . ternooni when the rumour spread, that the ■Government, might resign. Similarly, industrials, like brewery- and. tobacco shares, were dull on the apprehension o£ 'imposition of yet farther duties, -while : others weta inclined to improve on the , Jalji:{df ; :ii revenue tariff of 10 per cent. ! y:>' .Saturday; business. ; : The'decision to openthe London. Stock Exchange on-, Saturdays aroused; copsideri ableyinteiest,; and! was freely - discussed. TRer".Chronicle's""comment is thqt ; the committee,. in arriving at this decision, did .so at. a time when there was ' not enpugh business to occupy the already depleted staffs of stockbrokers' offices more :than a fraction of the ordinary working day. The committee is; making a •gesture itha't Ss 'generally ■ approved,/ for it mdi - eates that the Stock Exchange' at this ; critical stage /of the country's finances is prepared,to do everything possible to ; facilitate business. .; - Thero.ig-imlikely to .be any .material ; increase; in- the weekly turnover' as a;, reBujt,., but it will, facilitate international ; transactions, as foreign bourses are generally .op.eh ,on: y The.', market here on Saturdays will now be- able to : follow Wall Street's Friday lead:-■■-.,..:■■;: ' "'-■' /