FINANCE MARKET

Manawatu Standard, Volume LIX, Issue 205, 31 July 1939, Page 10

FINANCE MARKET

DOMINION OPERATIONS. LONDON OPINION. (United Press Association —By Electric Telegraph—Copyright.) LONDON. July 28. Though the. Stock Exchange turnover remains low. the week brought an appreciably increased activity, with price trends suggesting that giltedged securities and equities are parting company after so long roving lllogically in unison. Investors are at last beginning to appreciate the implications of the borrowing programme. The rising business activity is now within 20 per cent .of the 1937 boom level. New Zealand loans rose a further point. There is some mystery as to now tlie balance of the loan will he taken up if is not fully subscribed. It is 1 relieved that large houses, the discount market, and the banks, which are estimated to hold between them 50 per cent, of the maturing loan, intend to convert their holdings, but it is felt the money market is disinclined to make cash application. The New Zealand operation is welcomed in financial quarters, but in view of the onerous redemption terms industrial circles foresee the possibility of unpleasant repercussions for British exporters unless commodity prices rise. The city now visualises a general upswing in commodity prices—war or no war. It argues that Government requirements of essential commodities are likely to he increased if the present uncertaintv continues, while war would bring inflation and headlong spending. Commodities generally have reflected this view.