UNTOWARD EVENTS

Manawatu Standard, Volume LI, Issue 118, 20 April 1931, Page 7

UNTOWARD EVENTS

EFFECT ON STOCK EXCHANGE. MARKETS DEPRESSED. BRITISH INVESTORS NERVOUS. (United Press Association.—By Electric Telegraph.—Copyright.) LONDON, April 18. The cheerfulness which prevailed on the Stock Exchange before Easter has unfortunately not been maintained. During the past ten days there has been a succession of untoward events, of which the cumulative effect has been to depress markets all round. Among these may be mentioned the weakness of many commodity prices, the revolution in Spain, unfavourable reports presented by Home industrial concerns (several being compelled to pass dividends), had traffic returns from the Home railways, a fresh relapse in Wall Street, and last, but not least, the critical news from Australia. In addition to all these is the imminence of the Budget and the fear of increased taxation.

In the face of this array of unfavourable factors it is not surprising that prices have given way all round. The only satisfaction is that the declines so far are not serious. It might have been exepected that Australian stocks would have improved on the announcement of the British Government’s war debt concession, but it had little effect. Yesterday, however, the news of the Commonwealth Bank’s ultimatum of no further finance for the Government caused a general marking down, hut there is little pressure to sell, and the action of the Senate in rejecting the Fiduciary Issue Bill has to some extent improved the position.