PALLING STOCKS

Poverty Bay Herald, Volume LXIV, Issue 19313, 1 May 1937, Page 5

PALLING STOCKS

WORLD-WIDE WEAKNESS

PARIS HIT SEVERELY

LONDON CITY WARNING

DEFENCE LOAN LESSON

(Elan. Tol. Copyright—United Press Assn.) (Read. May 1. 11.15 a.in.) LONDON, April 30.

The City editor of the Australian Associated Press says that although there are signs of substantial discriminating buying, the markets are very weak. Gold shares again were sold and oils and industrials were depressed.

The weakness of the markets has now spread throughout the world. The Continental Bourses, especially Paris, are all severely hit. Wall Street is subject to wave after wave of selling. Even Stock Exchanges as far away as Bombay have broken badly. City men declare that there is poetic justice in the result of the first instalment of the defence loan, of which only 20 per cent is believed to have been taken up. It opened at a half per cent discount. The City wonders whether the Chancellor of the Exchequer will at last realise that the market eaiinot maintain giit-edged securities if assaults on equity and the' taking of risks are to bn an element of the business.

Four powerful mining finance houses namely, the Central Mining Corporation, Rand Mines Limited, Consolidated Goldfields of South Africa and the Sir A lie Bailey group, agreed to support shares in which they have interests to the extent of £4,00(5,000, this resulting in the markets closing with a more cheerful tone.

NEW TAX ON PROFITS

PRINCIPLE DEPENDED CHANCELLOR’S COMMENT (British Official Wireless.) Reed. noon. RUGBY, April 30. The Chancellor of the Exchequer, Mr. Neville Chamberlain, speaking at Bristol, said that the principles which underlay the new profits tax intro* duced with the Budget had been generally recognised as right and that, as his proposals came to be realised, it would be seen that they did not impose upon industry a burden beyond its capacity.

Mr. Chamberlain indicated that the employment figures for next week would be a pleasant surprise. He ended his speech by welcoming the efforts of the Prime Minister of Belgium, M. Paul Van Zeel,and, to achieve a lowering of the 'barriers to international trade. This mission, lie thought, would meet with a larger measure of goodwill than would have been possible even a short while ago.