STOCK MARKETS

Evening Star, Issue 23325, 22 July 1939, Page 15

STOCK MARKETS

SHORT-LIVED SPURT DIES GOVERNMENT'S HEAVY BORROWING PROGRAMME N.Z. CONVERSION PROSPECTS Press Association—By Telegraph—Copyright LONDON, July 21. (Received July 22, at noon). Dominated by the prospect of the Government’s heavy borrowing _ programme, gilt-edged and Dominion issues failed to participate in the shortlived spurt that other sections of the stock maiket staged under the stimulus of the more hopeful international news The new issue market is still unreceptive. Sixty per cent, of the £2,000,000 Sudan loan has been left with the underwriters, which is not a bright augury for the New Zealand loan conversion. Discussions, according to Mr Nash, are “ proceeding satisfactorily,” but the nature of the bargain he will be able to strike with investors remains to be seen.

The City considers that Mr Nash thus far has got rather the best of the discussions. His assurances fall short of those that industrial circles desired.

The mounting total of export credits is expected to be further swollen in the next week or two by completion of- the Polish negotiations, which reached only a temporary deadlock owing to the Treasure’s insistence that a precedent shall not be created by spending the credits out of England. The Chancellor will have to finance at least £350 million sterling by a bond issue. City opinion favours October as the time, and short to medium maturities as the method.