SHOCK TO MARKET

New Zealand Herald, Volume LXXV, Issue 23215, 8 December 1938, Page 17

SHOCK TO MARKET

JOBBERS' PRECAUTION" FINANCIAL JOURNALS' VIEWS DEBT SERVICE SECURE Independent Cable Service . (Received December 7, 11.55 p.m.) LONDON, Dec. 7 The Financial Times says:—" The New Zealand currency measures gave a fresh shock to the London market in Dominion stocks. The surprise was all the greater because Mr. Nash in October denied reports that restrictions were imminent. Quotations were not greatly affected, but jobbers widened their prices as a precaution against possible selling. Some observers think the measures are definitely favourable to stocks, since sterling will now be conserved for loan purposes." The Financial News, in an editorial under the heading " Financial Savagery," says: "Nobody denies that the Government has carried out much useful and constructive social work. The trouble is that it has persistently refused to cut its coat according to its cloth." After remarking that restrictions ware probably the best device at hand and that the service of the External debt is now considered fairly seoure, the .editorial adds:—"The danger is that the Savage Government may now consider itself free to pursue an tinsound financial policy without fear of the consequences^"