12 MARCH 1932, Page 44

Financial Notes


GESTMAL holders of securities and speculative operators for the rise have had another cheerful week, gilt-edged securities registering a further sharp rise, while even some of the more neglected markets, such as Home Railways, have exhibited a rallying tendency. The main factors operating so far as investment stocks, at all events, are concerned, have been the further reduction in the Bank Rate and the continued cheapness of money. There have been other helpful influences, however, such as the improvement in sterling and (Continued on page 890.) Financial Notes

(Continued from page 394.)

the somewhat better news from the Far East. Moreover, Paris has given a great deal of support to speculative shares, such as Oil and Mining shares, and although there has not been very much buying of its specialities by Wall Street the tone even of that market has, been ,steadier. At the moment of writing, however, some of the more speculative shares dealt in on Continental account have reacted a little, but curiously enough that reaction in its turn has been partly consequential upon the rally. in sterling. For it is not always understood by thoie unacquainted with the working of the foreign exchanges that every time the pound rises in value, the foreign buyer, whether of goods or of a Mining share has to pay what amounts to a higher price for his purchase. That is to say, he has to give a greater amount of money measured in his own currency.

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