NO PANIC ON STOCK EXCHANGE.

Horowhenua Chronicle, 17 June 1929, Page 2

NO PANIC ON STOCK EXCHANGE.

<» HOPES FROM LABOUR’S EMPLOYMENT SCHEMES CANADA AGAIN ON MARKET. Eeccived Sunday 7.0 p.m. LONDON, Juno 15. Tlic Stock Exchange continues in a state of quiescence, which seems likely to last until something is known regard 1 ng the new government’s plans. Meantime prices fhow little change, although gilt-edgeds are a shade easier, owing to the continued weakness of the sterling-dollar exchange. When the Conservative government was turned out a fortnight ago, many people expressed gloomy forebouingii regarding what was going to happen on the Stock Exchange and there were some who feared a general collapse of prices, but up to the present time, then; has been no sign of general uneasiness in the City at the entry of a Lab •our government into office.

On the contrary, as the Economist points out, confidence rather than otherwise is expressed in most quarters at the personnel of the new Cabinet, and those selected for departments which concern iiuanee, commerce and industrial life are recognised to be for the most part, men of judgment and experience. Before the election there were indications that if,a stalemate, position was avoided and a Conservative government returned, public interest- in the Stock Exchange might revive and another upward swing might be given to British industrials. Though that has not- happened, the behaviour of industrial markets as a whole afforded no support whatever to the view that money was passing out of industrials into foreign stocks. The only shares that can be picked out as having suffered by the result of the%lection are those of companies that would be affected by the removal of the safeguarding or McKenna duties. Dunlop Eubber and a number of motor shares had a setback for that reason and the market in them is unsettled. Iron and steel shares are on the balance and have slightly weakened. The disappearance of any prospect of a safeguarding duty might have been expected to put prices lower than they actually have gone, but on the other hand, there is an indeterminate feeling abroad that the new government’s plans for providing employment, especially in connection with railways, may bring an indirect benefit to heavy industries.

An interesting feature of the Stock Exchange this week has been the underwriting of the City of Montreal loan of £2.1 IP,OOO four and a-half per cent at 921. This is said to be the Jirst. Canadian issue in London since the war, Canada having found New York mure favourable as a borrowing place. Tin 1 Dominnion’s return to London is by no means unwelcome, especially as Canada recently demonstrated its readiness to re-purchase from London stocks and bonds of Canadian municipal industrial issues. The flotation of this loan is also regarded as a sign that I 'on has not lost its prestige as a financial centre and that New York’s attempt to dominate the world’s finances has received a setback.