Financial Notes
IrrvEsTmmrrs STEADY.
A atm= rise in money rates not only in London but also in New York and Paris has had practically no effect upon the market for gilt-edged securities. Nor is this surprising, for I do not think that this slight Tise in money rates denotes any real change in the monetary position. It is due, I think, to a little more determination on the part of the banks to agree amongst themselves not to bid for Bills quite so keenly, and this Atilt hardening of rates is more likely to make for a continuation of easy money than if the plethora of money were allowed to have too demoralizing an effect upon money rates in the market. Even now with Bank Bate at its minimum level of 2 per cent, the official rata is quite ineffective with money offering for short periods at f per cent, and with the three months' bill rate no better than per cent. All high class investment stocks have been well maintained, and during the past week a line of Uganda 8} per cent, stock was easily placed privately at the price of 97i. Apart from gilt-edged securities business in the stock markets during the week has been somewhat restrained by anxiety concerning the international political outlook, while Budget and War Debts uncertainties also (Continued on page 235.)
Finance—Public and Private
(Continued from page 232.)
have the effect of restraining operations apart from those concerned with absolutely necessary investment business.
Previous page
