MORE CHEERFUL

Waikato Times, Volume 105, Issue 17787, 12 August 1929, Page 7

MORE CHEERFUL

LONDON STOCK EXCHANGE. GOLD SITUATION' EASED. (By Telegraph.—press Assn. —Copyright.} lAu.'it Lilian \ i.iu.Liiuii.. LONDON, Aug. 10. The members of the Stock Exchange resumed business after the bank holiday in a cheerful frame of mind, thanks chiefly to the improved conditions of the money market following the rise of the Paris exchange above Hie gold export point, and the consequent cessalion of the drain of gold from the Bank of England. With the fear of an advance in the hank rate thus allayed there was a general improvement in prices, gilt-edged stocks naturally leading the way. But the rise in the Ne\v York Federal Reserve Bank rate came like a holt from the blue, and rapidly transformed the cheerful position into one of depression and anxiety,

There was general apprehension that an early rise in tiic London hank rate must follow. Consequently business yesterday was almost at a standstill with dealers marking down prices as a precaution. Fortunately there was no pressure to sell, and a measure of confidence was restored in the afternoon by the Bank of England's statement that the rise in the New York hank rate did not necessarily connote an advance in London. As a consequence most markets rallied and somewhat, better feeling was noticeaide at the close, hut uncertainly still prevails regarding the future, although it is generally believed that the Bank of England will do its utmost to avoid an increase in the bank rale, as an advance would seriously interfere with the country’s trade.