SPECULATION DECLINES

Taranaki Daily News, 20 October 1930, Page 9

SPECULATION DECLINES

STOCK EXCHANGE FEARS

PERIOD OF UNCERTAINTY

MONEY FOR INVESTMENT

LOAN ISSUE SUCCESSES

By Telegraph—Press Assn.—Copyright. Rec. 8 p.m. London, Oct. 18. Except for gilt-edge securities the last fortnight on the Stock Exchange has been full of depression and uncertainty. Many adverse features both at home and abroad, have combined to make people nervous and disinclined to speculate. Trade returns were bad, unemployment figures continue to rise,, revolutions in Brazil and elsewhere in South America caused a, heavy slump in all Brazilian securities, then came the financial and political unsettlement in Germany and the continued flow of gold from Berlin to France, and finally fresh slumps in Wall Street. Under the weight of all these misfortunes it is not surprising that settlement prices at the account which closed yesterday mostly showed substantial falls. On the other hand, the investment section of the Stock Exchange has shown remarkable firmness. All British funds improved, notably the war loan 5 per cents., which reached the record of £1.65 2s 6d, despite the Chancellor of the Exchequer’s intimation that lie intends to carry out a large conversion operation when tlie time is favourable. That there is plenty of mqney available for good investments is' shown by the success of recent issues of this class, all of which arc quoted at good premiums.

Dealings in the Indian loan of twelve millions, which was over-subscribed, opened at 5s premium and closed at £2 2s 6d. The success of this, issue imparted strength to older Indian stocks, and Australians showed steadiness, air though they are still far lower than they ought to be. An interesting event this week was the speech by the Chancellor of the Exchequer to bankers and financiers at the Mansion House. Mr. Snowden spoke somewhat hopefully on revenue prospects and said he would do everything possible to avoid imposing new taxation, adding: “Possibly I shall have to outrage my" strict financial principles and maybe do things I could not justify, in ordinary circumstances.” What Mr. Snowden means by this cryptic sentence is causing considerable speculation, some regarding it as an indication that ■ there will not be any interference in the safeguarding and other revenue duties and there may be a raid on the sinking fund.