BRIGHTER TONE

Wairarapa Daily Times, 15 June 1931, Page 5

BRIGHTER TONE

REPORTED IN BUSINESS. LONDON, Saturday. The Stock Exchange has assumed a decidedly brighter tone. Although the German news is disquieting most markets have shown firmness. According te some newspapers, one of the chief influences operating is the growing hope that the MacDonald Government will be defeated next week, and that an immediate dissolution will follow.

On this assumption there has been a considerable amount -of “bear” covering, especially in home rails, which has sent prices up all round. Gilt-edgeds, of Course, participated in the upward movement, and a most satisfactory feature was a further improvement in Australian stocks, which have been consistently moving higher from the moment it became known that the conversion loan was to be on a voluntary basis. On this subject “The Economist” writes: “There, is lio doubt from the

standpoint of Australia’s credit that the decision: is" a wise one. So, too, is the determination to press forward with other economies, for in addition to the direct and substantial contribution they will make to the reliability tlon of national they will re* move any fear that the IfQiKi'l'Pjdci is being singled out for* special' treatment. “The news that the Opposition is now co-operating also is encouraging, for it. holds out the hope that Australia is now on the threshold of a united national effort. Once assured of this the City will be eager to render Australia all possible assistance.” An indication of the improvement in financial conditions may be found in the renewal of activity in the capital issues this week. In addition to the New Zealand £5,000,000 loan issue, .£3,000,000 in debentures for the Buenos Aires Great Southern Railway has been arranged, and an issue of about £5,00,000 by Woolworths.