PESSIMISTIC STOCKBROKERS

Hawke's Bay Tribune, Volume XX, Issue 71, 7 March 1930, Page 6

PESSIMISTIC STOCKBROKERS

ADVISE AGAINST INVESTMENT IN BRITISH INDUSTRIES. FEELING ON LONDON ’CHANGE. [Un'ted Press Association—By Cable— Copyright.) London, March 5. The Daily Mail” says that considerable feeling has been aroused on the Stock Exchange owing to the issue of a circular by Buckmaster and Moore, cue of the largest stockbrokers in the city, advising the sale of. “almost all British industrial companies opeiating at Home, particularly shares in older industries, and the investment of a very large proportion of any funds in American and Canadian securities.”

The signatory, O. T. Falk, declares in the course of the document; “1 believe industrial prosperity in England is much more than temporarily depressed. It is quite unreasonable to expect us to regain our industrial leadership. The future of the financial position is another matter, and depends not the least on the action of investors. If we invest well we may maintain our financial prosperity despite the decline of industries. The advantages of Canada and America will be so overwhelmingly great in the next decade that they offer the most attractive field for investment.'’

Cityites strongly protest against the issue of such a sweeping recommendation. Sir Arthur Duckham declared that the circular displayed absolutely unwarranted pessimism. “My advice to investors is stick to home industries, which certainly are as healthy as American.’’