MONTH IN THE CITY.

New Zealand Herald, Volume LXVI, Issue 20385, 14 October 1929, Page 11

MONTH IN THE CITY.

MOST DREARY FOR YEARS.

BANK RATE UNCERTAINTY. (Received October 14, 12.15 a.m.) United Service. LONDON, Oct. 13. From tho City's viewpoint the present month is• the most dreary for many years. All causes have combined to discourage investment activity.

Although the first rumours in regard to the extent of the Hatry group's losses may now definitely bo discredited, it is apparent that the financial complications resulting from them will bo even more complex than was originally expected. The bank rate makes borrowing practically out of tho question for speculators dealing on small margins. Other causes of depression arc the general exhaustion of ready money following upon the end of tho holiday season, also tho continued uncertainty about tho Government's financial intentions.

This is not likely to bo allayed before tho House of Commons meets. Mr. Snowden's recent statement emphasising tho complete independence of the Bank of England from the Government is generally regarded as tho solitary bright financial event of the month.

But there aro persistent rumours that tho worst has not yet come, and that the bank rate may bo raised ono half per cent., though there is no outstanding feature for the past fortnight.