FINANCE

Hawera Star, Volume XLVI, 11 April 1927, Page 5

FINANCE

THREADNEEDLE STREET.

CHEERFUL INDICATIONS. ur;oy ant exct rang e reports. Ht CABLE—PHESS ASSOCIATION - COPYRIGHT Received 9.50 a.m. to-day. LONDON, April 9. The unexpected oiten happens on the Stock Exchange. An example ot tins occurred tins week. Considering the troublous conditions hi China, tiie heavy deficit in the national acre nuts, ami the imminence of rhe Budget, which must increase Englaiußs already enormous burden ot' taxation, one might have expected the Stock Ixchange to be nervous and depressed, but tor some unaccountable reason the present conditions are distinctly cheerful, and the Exchange closed yesterday with a display of strength that astonished the members. There were marked examples of buoyancy* in nearly ail speculative markets, and the lon:uesS of gilt-edged securities inspired general confidence. The Government’s new consolidated 4. per cent loan, which hau been at a discount l’ur .some time, has now reached par, and scrips and several recently-floated corporation issues are also* improving steadily. The announcement of the C jmn.cnwealth’s large new loan had no depressing effects on the market, probably because it is a conversion, not new rw.rey. lh» terms of issue received 1 ayovirabie comment in the newspapers. Ibe loan will oik® n for both casli and ■' ••!'.ve i sit'll Application till 25th. in connection with borrowing, :L is interesting to note that the mount <»J new canital issued in March was nearly £95 (KMI.OOO. which constitutes a record for March, except in the boom period ot 1921). The fact that this heavy emission of new capital has not depressed existing securities is another illustration of the inherent strength of the stock markets.

JAPANESE GLOOM

AT SUBZUKIS FAILURE

FINANCIAL FABRIC SHAKEN

Received 11.20 a.m. to-day. TOKIO, April 10,

The entire financial structure re .shaking, pending the successful adjustment of the* Subzukis concerns. The gloom of traders and financiers is deepened by the closing of the Sixty-1 1 itth bank with a capital of £10,OIK),000, and deposits of £.‘30,000,000. The majority of stock is owned by the Subzukis concerns.. The markets are very depressed, Subzukis representatives assert their ability to honour their liabilities, provided the banks extend the repayment period, and other erditors do not press their claims.

PLENTY OF CAPITAL

NEW YORK FINANCE

NEW YORK, April 9. Extraordinary wide financing in the local market continues. A new bend, offering during the week and ending to-day, totalled 192.870,000 dollars, of which 100,000.000 dollars was for a Farm Bank loan. 48,819.000 for a foreign loan. 15,976.000 dollars for a State and municipal loan, 16,950,000 for a public utilities loan, 6,250,000 for an industrial loan .and 1,575,000 for railways.

A plentitude of capital, moreover, is emphasised on every hand, and next week’s financing promises to be very large, so that the keenest competition is certain to be maintained. A 30.000.000 dollar city of Milan. Italy, issue is being bid for by 20 banking houses. Rates for foreign loans continue high. Czecho-Slovakin paying in excess of 7 per cent for a 20.000.000 dollars loan.