SHARE MARKETS DULL

Poverty Bay Herald, Volume LXIII, Issue 19023, 25 May 1936, Page 5

SHARE MARKETS DULL

GILT-EDGEDS DECLINE HIGHER INTEREST LIKELY LONDON, May 23. The gloom that appears to Have settled upon the stock markets has been accentuated by the warning given by tuie Chancellor of the Exchequer, Mr. Neville Chamberlain, that public expenditure is likely to continue on the increase. Gilt-edged securities have not the stamina to resist tne depressing speeches irom tne Treasury uenches and consequently have shown iractional decnues. Tnore is persistent slipping of corporation stocks. A chniy »eception was accorded recent loans due to an undercurrent of beiiei that the cheap money period is ending.

The Investors' .Chronicle urges tne Treasury anu the name ot Engmutl u» check tne tendency oi. higher interest rates, it points out that the supply oi bank money has not increased in the past US months sutiicient to keep pace, with increased production aiiu tne rise in the price level. The authorities can still act safely without tear or inflation.

The general dullness -has spread to industrials. The traffic index oi cable ami wiroiess messages suows a decline compared with last year, offsetting the iavourable impression made by the accounts earlier.

Some selling followed the statement oi mo governor or uuoies aim wireless Limited, Mr. J. 0. Dcnisoni/euder, tuat there is no present prospect oi a capital rearrangement, including provision for preicrenco arrears. There is little business in otiier industrials, many of which are slightly niamed uown. Investors are keeping out oi the markets, preferring t,o wait and tee now the cat jumps, 'i'hougn the nervousness over the iranc persists, little business is transpiring.

The Economist expects the drain oi •lunus irom i<'ranee to recommence alter tno present i< reiicti holidays. The authorities are leaning more in tlie Uhoclioii ox exenauge restrictions, in Which the Bank of England is uuomcially co-operating, but it is becoming- m.ore uiuicult than eyar to predict a short term gold bloc.