QUICK RECOVERY

Gisborne Times, Volume LXXIII, Issue 12089, 31 October 1933, Page 5

QUICK RECOVERY

CHEERFUL FEELING ON LONDON ’CHANGE.

RENEWED FLIGHT INTO STEELING SECURITIES. MONEY PLENTIFUL FOR RHODESIAN LOAN BANK OF ENGLAND ALMOST "SNOWED UNDER.” (U.P.A. by Elec, Tel. Copyright) LONDON, Qtcobor 28. The Stock Exchange quickly recovered from the fit of despondency which followed Germany’s bombshell at Geneva, and a cheerful feeling is now displayed on all markets. This is attributable, as the Statist says, to- a variety of factors, the chief of which probably, is the renewed flight into sterling securities, caused by developments in France, the United States, and elsewhere. Mr. Rooiscvolt’s latest declaration is taken as a definite bull point of goldmining shares, as was also the uncertainty created by the defeat of the French Government, for similar reasons. Tlie'infhix of foreign funds into the gilt-edged market is reported. The domestic demand also reasserted itself under constant pressure of the heavy floating stock of money’ unable to find profitable investment in other directions. This factor has been all the more potent because of the confidence engendered by the soundness of the national finances.

An illustration of the plentifulness of money is afforded by' Die Southern Rhodesia £2,250,000 loan, for which, according to a market rumour, over £90,000,000 was subscribed by 30,000 applicants, with the result that the Bank of England wa s almost snowed under, and unable to issue letters of allotment on the day the subscription lists closed. There was a 'rfis* l for this stock to-day at £1 7s 6d premium.

Industrial shares have again come into favour, notably brewery, tobacco, iron and steel, and textiles. Some idea of the activity of the markets may he gathered from the fart that the number of bargains recorded during last week, not counting Saturday, ranged from 775.°, to 8879 daily. The new tin agreement is expected to have a good effect on the prices of metal and tin shares. The Financial Times points out that at recent prices, most of the low-cost tin producers have been able to make profits, even although working only at one-third capacity. Some actually have been able to re-enter the divi-dend-paying list. These fortunate companies will derive the greatest benefit from the permission to increase exports to 40 per cent. By December 7, when the International Tin Committee holds its next meeting, the American outlook should he clearer. Tr.deecl, the remarkably successful tin plan may remain in operation indefinitely. and prove a model for the advantageous regulation of many another nrirnarv industry.