LONDON MONEY MARKET

Wanganui Chronicle, Volume 75, Issue 205, 31 August 1932, Page 7

LONDON MONEY MARKET

BAN ON NEW ISSUES. THE EMBARGO MODIFIED [ British Official Wirelea*. ] RUGBY, Aug. 29. On his return from Ottawa, the Chancellor of the Exchequer, Mr. Neville Chamberlain, has reviewed the position arising from his request to intending borrowers to refrain from coming on the market, ■pending the completion of the conversion operation. In view of the gratifying high percentage of assents already received from holders of war loan, the Chancellor now feels satisfied that some partial relaxation of the present arrangements may be safely permitted, but for the time being he requests that only the following opera tions be undertaken:— (1) The mere exchange of one class of security from another without change of ownership, and (2) the issue of new security for another without change of ownership, and (3) the issue of new security to replace the security, the final redemption of which had. prior to July 1, 1932, been fixed for a date earlier than December 1 next, provided that such • peratibns concern only British, including Empire, sterling issues domiciled in London and involve neither the provision of new cash nor underwriting An announcement respecting the repayment of 44 per cent, war loan, 1925-45, and 44 per cent. Treasury bonds, 1932-34, is being made on Tuesday. By the beginning of October it will be possible to estimate with fair accuracy the total amount of cash to be provided for redemption on December 1. The question of terminating the socalled “embargo ’’ will then be reviewed and a further statement made. FAVOURED AUSTRALIA AT INVESTORS’ EXPENSE FINANCIAL NEWS COMMENT Received Aug. 30, 11.5 p.m. LONDON, Aug. 30. Commentators point out regarding the ban on new loan issues, which is now to be partially relaxed, that there was no legal embargo, merely a Government request and accepted in financial quarters as necessary in the national interest. A semi official statement says that the Government is not seeking anything in the nature of State control of investments and is only actuated under expert advice, by a desire to complete Britain’s huge war loan conversion. There probably will be a progressive removal of the ban. beginning in October, and not a sudden re moval of all the restrictions. The Financial News says: “The Treasury announcement affects to lift the embargo partially without lifting it at all. Tt will interest solely Aus tralia. who is given a monopoly at least until October 1 and probably This gift may be generous, but it is at the expense of the investor and in our opinion inexcusable. Aus tralian loans are as good an invest ment as many mar think, hut are not everybody's natural selection.”