ANOTHER SET-BACK

Poverty Bay Herald, Volume LV, Issue 17228, 7 April 1930, Page 7

ANOTHER SET-BACK

BRITISH FINANCES LESS CONFIDENT OUTLOOK DEFICIT CAUSES ANXIETY (Elec. Tel. Copyright—United Press Asm.) (Kerch ed April 7, 10 a.m.) LONDON, April 5. Those optimists who anticipated an early reduction of the. hank rate to o per centsome even expected h las! Thursday—have been disappointed n.r yesterday I lieii! was a- sharp advance of 3s per cent, m liit- rate at which 'treasury hills Were, allotted, and consequently the monetary outlook is regarded with less

An imnieipate result was a decline, of call-edged securities, which had preciously been showing an easier tendency under the combined influent rs of the appi .inching Eastri holidays, anil orr Vi .iisness regarding the Budget.

Ilia knowledge that the Uhanaellor of the Exchequer will have to meet, a detii’it ol eniisiilrrablv over JWO.CCJ.OOO is naturally causing anxiety. Allot her cause of the weakness in giltedges has been profit-taking by speculators who bought at the commencement of the upward movement. In this position if is satisfactory that Australian stocks maintain their position, and have been only slightly affected by recent unfavorable tinnrcial developments, but the whole of gilt-edge securities have been unsatisfactory. There has been a fair amount of activity m industrials, which is to some extent a reflection of the revival in Wall Street, where there has been a considerable increase in speculation. According to the Statist, it is estimated that Wall Street stocks have, on an average, recovered fully 50 per cent, of the depression which occurred in November, hut whether prices will continue to ad vnnoo seems doubtful in view of the weakness of the technical position and the general depression of trade. The tendency in New York is very irregular, though business continues exceptionally heavv.