UNEASY FEELING

Evening Post, Issue 11, 13 July 1936, Page 12

UNEASY FEELING

GILT-EDGED MARKET

LONDON STOCK EXCHANGE

(By Telegraph—Press Assn.—CopyrigUt.)

(Received July 13, 10 a.m.)

LONDON, July 12.

The immediate sequel to the' French Government's "Baby Bond" appeal has been a severe slump in the franc in contrast with the optimism of the French Government, which stated that .the loan had met with a most favourable reception. Reports current in the City suggest that the first result of the issue has been most disappointing. The efilux of capital from France has been renewed. Uncertainties in the aspect of international politics are responsible for the stock markets continuing to mark time. NEW ZEALAND LOANS. Sir Austin Harris's recent speech at the annual meeting of the National Bank of New Zealand, Ltd., held in London, is reported to be doing much to reassure the holders of New Zealand Government securities. The reference is to Sir Austin Harris's statement: "I am in a position today, on the direct authority of the New Zealand Government," he said, "to reaffirm definitely that there has never been any intention on the part of their party to interfere in any way with the service and terms of loans domiciled in England. This is in accordance with the high traditions of the Dominion, and I hope this statement will allay any remaining fears that anything in the nature of forced conversion was ever contemplated by responsible Ministers." "BABY BONDS" ISSUE. The "baby bonds" above referred to were issued with the object of absorbing a proportion of the £800,000,000 of French capital which is estimated to have been withdrawn for purposes of hoarding. The Minister of Finance (M. Auriol), in a broadcast address, urged generous participation by rich and poor to enable a restoration of confidence, an improvement of exchange, and lowering of prices. The bonds are of various denominations between 200 and 100,000 francs. Those for one year bear 4 per cent, interest, and those for six months 31 per cent., both being payable in advance.