Financial Notes
NEW CAPITAL. ACTIVITY.
GENERAL business on the Stock Exchange has been somewhat restricted during the past week, and in places the tone has been rather dull. This has been due in some measure to the number and extent of new capital flotations, the response to many of which has been poor, so that discounts have been quoted upon the new scrips. Dealings have now commenced in the San Paulo Coffee Realisation Loan, and at the time of writing the discount is about 1i per cent. Underwriters of that Loan and also of the Agricultural Mortgage Corporation Debentures had to take about 86 per cent. of the issue, and those results have had a rather damping effect upon markets generally. During the early part of the week some of the speculative markets were also affected by the further setback in Wall Street, but later there has been some recovery. More- over, on Tuesday the markets had a little stimulus by reason of the success which attended the new Japanese Loan. The issue was mainly in the nature of a conversion operation to deal with bonds maturing next January, but cash applications were also invited for the English portion of the Loan, which was for £12,500,000, and the cash lists were only open for a few hours, subscriptions being very heavy.*
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