BRITISH STOCKMARKET

Poverty Bay Herald, Volume LV, Issue 17239, 21 April 1930, Page 7

BRITISH STOCKMARKET

' EFFECT OF THE BUDGET LITTLE ALARM CAUSED (Elec. Tol. Copyright—United Press Assn.) LONDON, April 19. Tho Stock Exchange broke up for the Easter holidays in a fairly cheerful frame of mind, the general opinion being that the Budget, though unfavorably affecting tho gilt-edged market by reason of the higher income tax and super tax, might have been much worse. The absence of additional taxation on petrol, gramophone records, and toba’cco, which had been feared, is expected to lead to increased activity in industrials when business is resumed on Tuesday. The undertone of tho Stock Exchange is generally good. .Money is cheap and the arrival of yet another 1.C00.0C0 sovereigns from Australia has had a good effect.

Discussing the position, a member of the Stock Exchange, writing in the Morning Post, says: “ll may take a little time for confidence to return sufficiently to bring money into the Stock Exchange, but there can be little doubt as to the certainly of its coming into tho markets, if only by reason of the low rate of interest offered by the banks on deposits. The effect of the Budget is 100 near at hand for stocks and shares to receive any great assistance, but there is considered to he reasonable ground for expecting a greater measure of public attention being directed towards the Stock Exchange markets later.”

Commenting on the Australian trading banks opposition to (lie reserve bank proposals, tho Statist, says: “It is important to the Commonwealth's future that each step taken should he most carefully 'considered. The most advisable course to take would he the setting up of an independent commission of experts to consider the problem and make recommendations regarding the creation of a new hank and the future of the Commonwealth Bank. The result of an investigation like that which preceded the creation of the* South African Reserve Bank would lie far more likely to strike an equable balance between the various interests affected and lead to a sound central hank, commanding respect locally and of the trading banks than a reseivo bank forced upon the banking community by political compulsion.”