MONEY AND GOODS

Gisborne Times, Volume LXXXIV, Issue 12870, 25 May 1936, Page 5

MONEY AND GOODS

GLOOMY CONDITIONS AT HOME. WHY RECENT LOANS HAD CHILLY RECEPTION. BELIEF CHEAP.MONEY*ERA ENDING. (LLP. A. by Elec. Tel. Copyright). @ (Received May 24, G. 30 p.m.) LONDON, May 23. Tho gloom that appears to have settled upon the market has bow. accentuated by Mr. Chamberlain s warning that public expenditure is j likely to continue on the increase i Gil lodged llfive not tho stamina to resist the depressing speeches from tho Treasury benches and consequently have shown fractional deed nos. There is persistent slipping of corporation ' stocks. A chilly reception was accorded recent loans duo lo an Undercurrent ol belief that the cheap money period is ending for the investors.

Tho Daily Chronicle urges the Treasury and ihe Bank of England to check the tendency of higher interest rates. It point- out that the supply of bank money has not increase 1 in the past eighteen months sufficient to keep pace with increased product ton and tlie rise in the price level. The authorities can still act safely without fear of inflation.

Tho general dullness has spread to industrials. Tho traffic index of cable nnd wireless messages shows a decline compared, with last'’year, offsetting tho favourable impression made by tho accounts earlier.

Some selling followed Denison Pender’s intimation that there is no present. prospect of a capital rearrangement, including provision for preference arrears. There is little business in other industrials, many of which are slightly marked down. Investors are keeping out of tho markets, preferring to wait and see how the cat jumps. Though the nervousness over tho franc persists, little business is transpiring.

Tho Economist expects the drain of funds from France to recommence after tho present French holidays. The authorities are leaning more in the direction of exchange restrictions, in which the Bank of England is unofficially co-operating, hut it is becoming more difficult than ever to predict a r-liort term gold bloc.