LONDON’S DREARY MONTH

Sun (Auckland), Volume III, Issue 793, 14 October 1929, Page 9

LONDON’S DREARY MONTH

INVESTMENT ACTIVITY DISCOURAGED BANK RATE UNCERTAINTY (United Service) LONDON, Sunday. From the City's viewpoint the present month is the most dreary for many years. All causes have combined to discourage investment activity. Although the first rumours in regard to the extent o£ the Hatrv group’s losses may now definitely be discredited, it is apparent that the financial complications resulting from them will be even more complex than was originally expected. The bank rate makes borrowing practically out of the question for speculators dealing on small margins. Other causes of depression are the general exhaustion of ready money following upon the end of the holiday season, also the continued uncertainty about the Government’s financial intentions. This is not likely to be allayed before the House of Commons meets. Mr. Snowden’s recent statement em-. pliasising the complete independence of the Bank of England from the Government is generally regarded as the solitary bright financial event or the month. But there are persistent rumours that the worst has not yet come, and that the bank rate may be raised one half per cent., though there is no outstanding feature lor the past fortnight.