REPARATION FAILURE

New Zealand Times, Volume XLIX, Issue 11295, 22 August 1922, Page 6

REPARATION FAILURE

HOW IT AFFECTED THE EXCHANGE. NO PRESSURE TO SELL. By Telegraph—Press Assn. —Copyright. Australian and N.Z. Cable Association. LONDON, August 19. Contrary to what might have been expected, the failure of the Reparations Conference did not bring any reaetbn on- the-Stock Exchange. It certainly caused disappointment, but no depression, and those who feared heavy liquidations were agreeably surprised to find that there was no pressure to sell, even from Paris, whence it was feared many selling orders would -ome. On the contrary, when ’ho Paris 'Bourse reopened on Wednesday, after a two .days’ holiday, London received buying orders from France, and these had'Such an excellent effect that, although the njoncy market was very tight, there was no appreciable decline in Stock Exchange values. The Stock Exchange Committee has fixed September Ist for settlement of pre-wax accounts. The total commitments, when the Stock Exchange closed in July, 1914, was £106,000, jOO sterling. Since the Armistice these have been steadily cleared off, and the amount now outstanding is ■< ss than £2,000,000, so that the settlement cannot have muah influence on narkot conditions, although it may entail hardship on individuals who have accounts open in Grand Trunk and South American rails.

The foreign exchange market has been demoralised by the breakdown of the conference, and with the German mark daily falling to fresh depths of degradation, there has been a collapse in most of the leading European currencies. In this condition of affairs it is satisfactory that the value of the pound sterling in the United States oontinues to appreciate, apparently because Americans have confidence in British determination to. face the facts of the European situation. At any ra,^e » America shows no inclination to gamble for a fall in tho British ponnd