MONEY PLENTIFUL IN LONDON

Timaru Herald, Volume CXXXVIII, Issue 19943, 30 October 1934, Page 7

MONEY PLENTIFUL IN LONDON

HARDENING MARKET IN BEST ISSUES OVER-SUPPLY OF CREDIT AVAILABLE British Official Wireless (Received October 29, 8,5 p.m.) RUGBY, October 27. The under-consumption of credit and capital, which is one of the outcomes of the world’s economic disorder, was reflected during the week in the continued strength of the gilt-edged market. Yesterday new high levels were recorded by several British Government securities, following substantial buying by big financial institutions. Allowing for the deduction of half a year’s interest, the price of war loan, at 3i per cent., was 7-16 higher at £lO4/13/9, and 3( per cent, conversion stock changed hands at £lO5/15/-. Yesterday’s sharp fall at 4/8.3 in the rates of Treasury bills to 9/7.42 per cent., represents one of the biggest changes in the rate that has occurred in a single week for several years. This gave a fresh upward drive to giltedgeds. UNEVEN MONEY MARKET INDUSTRIALS WEAK ON LONDON EXCHANGE United Press Association—By Electric Telegraph Copvrigh t (Received October 29, 5.5 p.m.) LONDON, October 27. The Stock Exchange this week has been somewhat peculiar, for while giltedgeds were soaring upwards, with several British Government stocks reaching new records, there has been a pronounced decline in speculative shares, with a large amount of liquidation in connection with the settlement in industrials, South African mines, oils and teas. The strength of gilt-edgeds was largely due to a superabundance of money and a demand for investment stocks by big financial institutions, while a certain amount of support came from foreign sources. The weakness in industrials was due primarily to over-speculation.