MONEY MARKET.

Poverty Bay Herald, Volume XXXX, Issue 13092, 4 June 1913, Page 3

MONEY MARKET.

STOCK EXCHANGE DEPRESSION. (Prass Assn.— By Telegraph— Copyright.) LONDON, June 3. The Pall Mall Gazette, commenting on South Australia's deferred attempt / to raise a loan, saya the markets will have enough to do to handle the unplaced scrip of a good deal of the issues already arranged,' and will then require a short rest. Great uneasiness prevails on the markets. . The -.loan ■arranged: by'-JMr Walt*- has •'..•£; 4 ci^rehcyi^of v.ruW. years}, with -ftTiey op- ;*« tion to redeem it at the end of .five years. It will be issueq m a few days. The recrudescence of Balkan troubles and the heavy German loans have further disturbed the markets. In addi- • tion to the Brazilian and Chinejpe issues Mexico will shortly be issuing a £20,---000,000 loan. The calls on new issues during" June are estimated <at £20,000,000, as com- v. pared with £9,950,000 m 1912. An outstanding feature of the Stock Exchange depression is the hasty slump m Canadian-Pacific railway stocks, which dropped 19 dollars m fivg days. Foreign Bourses are disturbed. The German loans have agitated the Berlin Bourse. Discussing the lowering of the Bank rate, after being at 5 per cent, for the 'unprecedentedly long period of six months, the Daily Mail says: "Thewidening of the investment market is causing a higher level for money to be established m all directions. Both at home and abroad capital for new enterprises can be attracted only by the offer . of gradually 'increasing rates of interest. " A Canadian railway that jcould raise, money at 4 per cent, six years ago has now to offer well over 4£ per cent, m order to attract investors. Canadian municipalities are raising money at well over 5 per cent., and Dominion Governments at over 4 per cent., whereas hot many years ago nearer 3 per cent, was sufficient. As regards the 'immediate future it is fully 4 expected ..that the 4£ per cent, now m force is merely traiv sitionary, and that there will be a further reduction to 4 per cent, within the next few weeks."