THE MONEY MARKET.

Poverty Bay Herald, Volume LI, Issue 16674, 2 March 1925, Page 5

THE MONEY MARKET.

1 FLUCTUATIONS ON STOCK EXCHANGE. lAustralinu unit N.Z ChihU* Association.LONDON, Feb. 28. For ten dlays the Stock Exchange lias showed a spirit of great optimism, which is reflected in the steady improvement in the prices of British funds and other gilt-edgeds. There was apparently plenty of money available for investment, as illustrated! by the successful Queensland loan and some other new issues. But, yesterday the markets received a rude shock owing to the disorganisation of the money market, following on the advance of the New York rediscount rate and the Bank of England’s veny necessary defensive action in raising its rate for advances to per cent. The effect of this hardening of money was immediately reflected on the .Stock Exchange, and there was a general collapse of gilt-edgeds, notably, the British conversion loan, which previously had been showing remarkable strength, This loan, of which the Americans are reported to hold a largo amount, fell off one and three-eighths. Other British funds also declined materially, a considerable amount of stock being offered. Colonial stocks, which have been very firm lately, were also affected, and the Queensland scrip, which was quoted early in the week at fifteen-sixteenths premium, fell to onehalf discount. A feature on the Stock Exchange early in the week was The issue of £3,i00,000 of 4J per cent, stock under tho Trade Facilities Act on behalf of three industrial concerns at £96 10s. The price proved l far too high for the investing public, and the underwriters had to take 80 per cent., with th® result that the stock is now quoted at discount.