Financial Notes NEW HOME DEVELOPMENTS.
ANNOUNCEMENT of the £35,000,000 plan for the extension and improvement of London's transport services, and of a £4,000,000 loan for Manchester, served to divert Stock Exchange interest frorri foreign to Home affairs. It goes without saying that the City is still deeply concerned at the many unfavourable aspects of oversea politics And finance, as recently exemplified by the acute weakness of the franc, rapid changes of Government in France, and the intractability of the differences between Italy and Abyssinia. While they persist, the disturbed conditions of which these events are the outward sign are bound to exercise a restraint on financial activity. At the same time, developments within this country have been sufficiently important. to attract more attention for the moment, especially as the Stock Exchange has acquired the habit of looking to internal trade in Britain for the surest. signs of returning prosperity. The immediate effect of the London transport proposals was to turn the market for British Government and kindred securities rather dull, since it was construed as a prospective diversion of (Cont. inned on page 1046).
Financial Notes
(Continued from page 1044.)
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capital resourees from investment to industry, although, of course, an extensive plan of the kind foreshadowed can only be carried out gradually, and will in any case take a very considerable time to accomplish: --The dull tone which over- spread the gilt-edged market on the -aiuibuncement was accentuated by the prospect of a big Government-guaranteed loan in- connexion with the scheme, and also'bY th&arrange- ment of the Manchester Loan, which Coincided with the London transport news, and represents the resumption of borrowink by British Corporations, after a lapse of some months. The absorbing capacity of investment Markets has .been 'greatly strengthened by the respite from new Corporation issues, especially as those issued immediately : before the cessation Were offered oh terms which were considered in many quarters to offer too low a yield to attract the investor. Manchester's issue reverted to much more attractive issue terms, and while this is all to the good, and secured an immediate success for the Loan, the commencement of Corporation issues with the offer of such a considerable amount of stock was not without its weakening influence on existing investment securities.
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