CHEAP MONEY ERA

Poverty Bay Herald, Volume LXI, Issue 18545, 3 November 1934, Page 5

CHEAP MONEY ERA

EXPERIENCES AT HOME NEW CAPITAL ISSUES (British Official Wireless.) Rec. 10 a.m. RUGBY, Nov. 2. The remarkable advance in the quotations of British Govermnent stocks hr.s continued to be the most impressive feature of Stock Exchange business during the week, the war loan gaining 8s 9d. The war loan gains were the more remarkable in view of the fact that the stock was quoted ex dividend last Friday at £lO4 5s and closed yesterday at £lO5 3s 9d. This excess of money, of which tee high price of gilt-edgeds is a symptom, has led to a revival in activities in the new capital market, which is revealed m the monthly statistics of new capital issues compiled by the Midland Bank. The statistics exclude conversion issues, short-dated bills, and other forms of issues which do not indicate a real increase in capita] resources. The amount of new capital issued in October was £23,446,000, and was the largest monthly total for four years. The aggregate total for the current year amounts to £124,092,000, compared with £113,729,000 in the corresponding period of 1933. Most of the recent new issues were very heavily oversubscribed. In the case of the £500,000 Brentford Corporation 3 per cent, loan, offered at £9B 15s, subscriptions exceeded £10,500,000.