THE PRICE OF CONSOLS.

New Zealand Herald, Volume XLI, Issue 12546, 13 April 1904, Page 4

THE PRICE OF CONSOLS.

One of the earliest and most cheer* '"S ing indications of the value of the - ! ; Anglo-French Agreement is to be | found in the recovery of British con- | sols. The exchangeable charac- • ter or these famous securities :Vv [ makes them peculiarly sensitive to • the temper of the money market. They are a reliable barometer, rising as the tone of the market becomes easy and falling as money be-< comes tight. The fear of further' complications has been alleviated by ' the assurance that France and Eng. j land will remain firm friends, and -it, there is already visible a tendency to relax the precautious which are automatically resorted to when the flotation of great loans by first-class • ! Powers appears imminent. This im- ' r 'M pro vein in consols is particularly '■£ pleasing to the colonies, which are continually resorting to Lombard- - street, not the least so to New Zea- , land. The Government must have money, and lias been forced to raise loans in the colony owing to the " tightness of money in London. This fill local raising of money has caused a reciprocal tightness in the local money market, which should be re-' • lieved as soon as it becomes possible to do business profitably in the usual way. The diversion of the accumulated savings of civilisation to purposes of war is not the least of the evils of international quarrel, for peaceful industry then becomes " stinted where it is not able to pay increased rates for financial assistance. And the restoration of interRational confidence, by easing; money, reacts advantageously upon :* the commerce and industry of the ; . entire civilised world.