AUSTRALIAN SHARES

Evening Post, Volume CXXXIII, Issue 44, 21 February 1942, Page 9

AUSTRALIAN SHARES

BUSINESS STOPPED

SYDNEY, February 20,

The Federal Government's finance regulations gazetted yesterday brought and end to what is known as free trading on the Stock Exchanges of Australia, which meant that business locally, as elsewhere, was confined to Government securities. The volume of share trading being carried on in future will depend on the extent to which Treasury permission is granted for the sale of securities for specific purposes.

Members of the Exchange consider it would be safe to settle for all share transactions effected to the close of business yesterday. The call room of the Sydney Exchange today presented a deserted appearance, and the afternoon scene was unprecedented in the history of the Exchange.

Authoritative opinion in financial circles is that the Government is acting too ruthlessly, and that there are likely to be . repercussions in Parliament.

Exchange reports have now ceased, (Rec. 9 a.m.) SYDNEY, Feb. 20.

Sharebrokers generally are of the opinion that certain facilities will be arranged to permit the negotiation of essential business, but just how that can be done is a matter for conjecture. They claim that under the present constitution of the Stock Exchange there has been no speculation as to merit such drastic steps as those now taken by the Government.

The view is also. taken that the banks will suffer, as many bank loans are secured by shares.

Another interesting position, it is held, arises out of the limitation of profits to 4 per cent. Shares listed at lower prices in companies which would be able to pay the limited 4 per cent, would, for all practical purposes, be equal *-.o the par value of stocks listed at considerably higher prices. It is also pointed out that in the case of deceased estates it. is often imperative to make certain sales of properties and stocks in order to meet commitments. Here the problem will be to find buyers and suitable prices, since there will be no open market.