EXCESS OF CAPITAL

Taranaki Daily News, 3 November 1934, Page 6

EXCESS OF CAPITAL

OUTLETS KEENLY SOUGHT AFTER.

£500,000 LOAN SUBSCRIBED 21 TIMES

(British Official Wireless.)

Rec. 5 p.m. . Rugby, Nov. ,1. A remarkable advance in quotations of British Government stocks has continued. The most impressive feature of stock exchange business during the week was the war loan gaining 8s 9d. This gain is more remarkable in view of the fact that the stock is quoted ex-dividend. Last Friday it was at £lO4 5s and it closed yesterday at £lO5 3s 9d. This excess of money, of which the high price of gilt-edgeds is a symptom, has led to a revival in activities on the new capital market, which is revealed in the monthly statistics of new capital issues compiled by. the Midlands Bank. The statistics exclude conversion issues, short-dated bills and other forms of issues which do not indicate the real increase in capital 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 for the corresponding period of 1933. Most of the recent new issues were very heavily over-subscribed. In the case of the £500,000 Brentford Corporation 3 per cent, loan, offered at £9B 7s 6d, subscriptions exceeded £10,500,000.