BRITISH TRADE

Manawatu Standard, Volume XLIX, Issue 228, 26 August 1929, Page 7

BRITISH TRADE

STOCK EXCHANGE BUOYANT.

IMPROVEMENT IN PRICES. WELCOME GOLD SHIPMENTS. (United Press Association —By Electric Telegraph—Copyright). Received August 26, 9.10 a.m. LONDON, Aug. 25. Although the holiday season is at its height and business on the Stock Exchange is somewhat restricted, the tone of most of the markets is cheerful and prices are well maintained. The unfavourable monetary conditions, especially the heavy drain of gold Iroin the Bank of England and the anxiety regarding the result of The Hague Conference, might have been expected to cause depression and nervousness, but the reverse has been the case and, with gilt-edgeds leading the way, almost every section is showing an improvement in prices. The news that Australia is shipping a million’s worth of gold coin has been welcomed, being regarded as evidence that Australia is anxious to help improve our monetary situation. The financial Times writes:— AUSTRALIA’S INTEREST.

. “Australia has a direct interest in the monetary condition in oth.er parts of the world, especially in London and New York, on account of the essential part which loans play in the development of the country. The Federal Loan Council had hoped to borrow further in London shortly, but the trend of events has put that practically out of the question, while a general hardening of the money rates is likely in the course of time to react on those ruling m the Commonwealth itself. In such circumstances it is obviously to the advantage of Australia to take any steps likely to retard, or prevent, the development of still more unfavourable conditions in London. Tile gold shipments will be devoted to building up the Bank of England’s supply. This knowledge has already had the effect of increasing confidence to some extent, oven though it is recognised that the shipments will replace but a small part of the amount recently withdrawn from the Bank of England.