THE MONEY MARKET

Poverty Bay Herald, Volume LII, Issue 17185, 8 November 1926, Page 7

THE MONEY MARKET

POSITION REVIEWED

LESS ACTIVITY SHOWN

FOREIGN AND COLONIAL LOANS

(Elec. Tel. Copyright—United Press Aesrn.) (Australian ano N.Z. Cable Association.) (Received November 8, 10 a.m.) LONDON, Nov. 6. Business on the Stock Exchange has Icon somewhat dvdl for the last fortnight, with an irregular tendency, there being some reaction in speculative issms, due to profit-taking. Yesterday's good news regarding the probable settlement of the coal trouble acted as a mild tonic and although businos showed little expansion owing to the imminence of a settlement, the markets developed a firmer tone and closed decidedly optimistic. Oih-odgeds generally remain firm, but Colonials are, for the most part, somewhat lower. This market is still suffering from the effects of the bad reception of the New South Wales loan, which proved a very- bad bargain for the underwriters. It ia now quoted at three per cent, discount. The Belgian loan overshadowed everything else this week. It appears to have Ivceu over-subscribed ' about fourfold. There has been such demand for it since allotment that the stock is now quoted at* six per cent, premium or £100; at this price it will yield seven per cent., and it is generally predicted that it .will ; go still higher ere long. This loan brought the usual crop of complaints about "stags" and, undoubtedly, a large proportion of the enormous amount, subscribed came from ''slags," and not genuine investors. It is suggested in many quarters that, in order to stop this ' slagging the application moneyshould be increased from the present £5 per cent, to £25, or, perhaps, £SO. Chief interest in the foreign exchange market centres on the French franc, which, at one time, improved to 144, and now stands at about 145 J. Financiers profess that they are un- \ able to explain these appreciations, but several-well-informed writers" attribute it to the prestige which M. Poiueare has acquired since his assumption of office. M. Poineare's Budget gave the rate at which the foreign debt charges had been calculated as 150 francs to the £ and France apparently has such faith in him that the franc has steadily improved beyond this figure. It is reported that M. Poineare visualises 12;"> as the rate at which the franc will be stabilised. , . _ Meantime the dollar rate for-sterl-ing shows no signs of improvement, and now is only one-eighth, or a cent, above the point which gold withdrawals for America become profitable. This brings dearer money and a higher bank rate within the range of possibility. Fortunately, the Bank of England's stock of gold is about £3,7;>0,000 larger than a year ago, and there is no present reason why the market rate of discount should rise sufficiently to force the bank rate up.

PRINCE'S PARTNERS

A HUMAN PICTURE "I'M ON THE STAGE, TOO" (Australian and N.Z. Cable Association.] {Received Nov. 8, noon.) LONDON, Nov. 7. Intensely human pictures of the Prince of Wales are contained in a volume, "His Royal Highness," a character study by Major Verney. which lias now been published. When at Panama, the Prince attended a ball, and after fulfilling several dutydances with partners possessing important husbands, he relievedly selected a slender, graceful, skilful partner and began to enjoy himself. There was consternation in the ballroom. A deputation of local people informed Admiral Halsey that the. girl was an assistant in a drug store. During an interval Admiral Halsey intervened. The Prince smiled, and said, "It must be a jolly good drug store, Halsey." Another story id that at Port Elisabeth the Prinve saw a girl looking rather forlorn at a big dance. He approached her and said, "Good evening. Aren't you dancing?" The girl said, "I have not yet sir. I am a visitor, touring with a theatrical company." / The Prince: is interesting. Have you been on the stage long?" The girl: "Since I was seven." The Prince: "Like it?" The girl: "Not much." The Priiroe: "I sympathise with you. I'm on the stage too, in a way. I've been a showman all my life." They danced, and when he left the Prince said, "If it is of any use to you in your job, you have my permission to ?xv you are r.nder the patronage of the Prince of Wales."