ADVANCE CHECKED

Taranaki Daily News, 27 November 1934, Page 12

ADVANCE CHECKED

PRICES FOR BRITISH STOCKS. EFFECT OF CHANCELLOR’S SPEECH. By Telegraph—Press Assn.—Copyright. London, Nov. 24. The upwarp march of British funds received a. slight check this week, which was only natural considering the .high level to which all these stocks had been pushed. Apparently big banks and other institutions have filled their requirements for the time being, and there have also been a large number of profittaking sales. Another factor was the speech by Mr. Neville Chamberlain, Chancellor of the Exchequer, who, referring to the optimist who was hoping for reduction in taxation, said: “We have been increasing expenditure so rapidly of late that very large increases in revenue will be necessary before there is anything over for the relief of the > taxpayer in the next Budget.” This speech was generally interpreted as a warning that there was little hope of a reduction of income tax, and this caused some selling of gilt-edgeds, but the market became more hopeful later and closed last night at a better tone. Dominion stocks reacted little in sympathy with British, but their position all round is still strong. Much interest attaches to the announcement that the Birmingham loan of £5,000,000 2% per cent. 1955-57 at £96 10s, is being underwritten. This is the first longdated issue by a home corporation at an interest rate below 3 per cent.