MONEY MARKET.

Gisborne Times, Volume LVIII, Issue 9670, 17 April 1923, Page 5

MONEY MARKET.

NEW RECORDS IN GILT-EDGED SECURITIES.

STERLING EXCHANGE REACTION CAUSES ANXIETY.

j LONDON, April 14. I An outstanding feature of the Stock { Exchange is the strength of gilt- ] edged securities, some whereof have ! established new records. Notable among these is the 5 per cent war ! loan, which has reached 103:1, a rise ; of no less than five points since OctoI her. British Government stocks, cor- ' poration stocks, colonial Governj ments, and Indian rails all show adi v-ances, and the demand exceeds the

! supply. ; One factor responsible for the j strength of British funds is that it is I rumored the Budget may contain some provision for further conversion of the loan; while the confident hope that * the income tax will be reduced has ac- : centuated the demand for good securities. The reaction in sterling exchange at New York has caused some anxiety. A financial writer in the Spectator says the relapse is not surprising, for there is every reason to, believe the recent advance in sterling was largely stimulated by special transactions such as the American purchase of British securities at a low level, oper- ; ators obtaining double profit both by ! reason of the rise in securities and the movement of exchange. It may be ; doubted if the recent rise was entirely j justified by economic conditions bo!'tween the'two countries. Quite apart ' from the great trade balance in her i favor America has lent £4.000,000.000 |to foreign countries within three | years, which should) give her further 1 control over exchanges, j Other financial writers suggest that the break was due to the selling of sterling in America to pay for foreign bonds bought in New York by British investors. —A. and N.Z.O.A.