AN UNSOUND BOOM

Evening Post, Volume CXXVII, Issue 112, 15 May 1939, Page 12

AN UNSOUND BOOM

ON BORROWED MONEY

LONDON STOCK EXCHANGE REACTION

(By Telegraph—Press Association —Copyright.)

(Received May 15, 9.30 a.m.) LONDON, May 14,

:.: "The inflationary boom is already here," declares the "Investors' Chronicle." It is described by that journal as "a boom which arouses little enthusiasm, as everyone knows it is unsound, and based on borrowed money, spent on unproductive proiccts." The investment markets, although most firm, have certainly not responded with exuberance to the abundance of good domestic news, including the declining unemployment returns. THE PEACE FACTOR. Informed financial opinion, however, is growing that the axis Powers will shrink from war unless assured of a "walk-over." The "Financial Times" publishes an important series of articles on the gravity of the German economic situation, revealing the imminence of a destructive inflation, notwithstanding the forced loans and the strictest regimentation of industry; moreover, the latest foreign trade returns issued by the Reich show a fall of over £13,000,000. in sterling for the first, quarter of 1939. Buyers are now complaining of the inferior quality of German exports, especially of iron and steel manufactures and Diesel engines. The workmanship is described as good as ever it was, but the materials are "rotten."