POLITICS RESTRAIN BUSINESS ACTIVITY

Manawatu Times, Volume LIV, Issue 6902, 7 May 1929, Page 7

POLITICS RESTRAIN BUSINESS ACTIVITY

STOCK EXCHANGE DULL.

REDUCTION IN BANK ' ‘ RATE SPOKEN OF.

United Press Association —By Electric Telegraph—Copyright. LONDON, May 4.

The condition o» the Stock Exchange doc 3 not show any change and dullness characterises most of the markets. The political situations, both at home and abroad, are having tho effect of restraining business. Prices for gilfcedgeds are generally being well maintained, especially Colonials. The steady increase in the Bank of England’s stock" of gold, which is now more than £8,1)00,000 in excess of what it was when the bank rate was raised in February, has had the effect of improving envestment securities, and as the stock will be further increased next week by tho arrival of one million sovereigns from Australia, the position is regarded as so satisfactory that some people are talking of the possibility of a reduction in the bank rate in the notdistant future.

Such a reduction, is very desirable in the interest of prospective borrowers, notably of Queensland, which has. 12 million of 5i per cents maturing on July, 1. Arrangements for a conversion loan for this amount must, be made shortly. The success of the loan floated by the Melbourne Board of Works roceiv * ed most favourable newspaper comment.