MONEY MARKET

Grey River Argus, 6 December 1932, Page 6

MONEY MARKET

LONDON POSITION Sterling Slump Effects (Alls. & N.Z. Cable Assn.) LONDON, December .‘I. Ihe worst feature olf th” decline in sterling Ims ben the destruction of the cohesion of the sterling bloc. Scandinavian. South American ami other currencies linked, with sterling have had their currency appreciate on sterling’s decline, which was also a powerful stimulant to deflation. Gold prices of most c.omniodit’u»s have fallen during ’> he wok, meat and wool being notal>|i‘ exceptions, but wheat touched a new low record. 'l’he Lull of sterling is out of proper lion to the actual business transacted. There is no evidence of n Hight (from fix“l interest securities, owing tn inflation fours. On the. contrary, the trend of industrials is downward. War d'bts overshadowed the markets, gilt-edgml movements being un | usually wide, but I here is not ih ■ | slightest evidence that confidi'Uce m affect' 11. T,he city, admittedly is more concerned in honouring obligations 1 ( . Anie ica than ih ■ economic coiisoquences thereof. A recoverv of gilt edgels significant’v followed the in--pii”d reports that Britain would pav i’f Ainericu insists. 1 he (’onversion Loan was brought lt> a triumphant comdusion. when a turnow r of more than six hundred millions, the largest amount recorded in any market, was completed without dis lurbaiice. des]>ite the war debt uncertainties and exchange complications. The expected increase in inarkr-t supplies of credit has not ma (eria lised, as the authorities have been rnanv weeks purchasing unconverted wnr loan testifying to the care and skill wh“rewith pie entire conversion was planned. PERSIA’S OIL TERMS. ANOTHER KNOCK BACK FROM £ P. LONDON. December 3. Tlw Anglo Persian negotiations are likely to be protracted and difticnli. ’The Company's loyalty is Persia’s chirtf source of revenue, vol jl has Hue leu years, ranging from £1,4 10,11(11) to 1 £130,000. Persian dissatisfaction in creased by tin l decline in st'-rliug, in volving heavy losses i H Persia’s bal ances kept in London as currency reserve. Persia wants terms simi , ‘' 1 ’ to Iraq, wb.or n the Government is assured of a minimum annual royalty, even though thp oilfields are not de