FINANCIAL CONGESTION.
But while the fortnightly settlement passed off smoothly, general business in the Stock Markets remains restricted owing to the general uncertainty with regard to the monetary outlook, while markets are also clearly suffering from the weight of new issues of capital. The gilt-edged section, in particular, has been adversely affected by the unexpected announcement of the Commonwealth Loan of Australia for £7,000,000 and from the outset the market was prepared for a comparative failure. As a matter of fact, the under- writers had to take 89 per cent., and the scrip fell at one time to 11 discount. At the time of writing there are indica- tions of the probable early issue of a second instalment of £1,000,000 in a 6 per cent. Loan for Hungarian Counties at the price of 92, the Loan, like the first instalment, being issued through Messrs. Rothsehilds, Barings and Schroders. * * * *
Previous page
