INVESTMENT OUTLOOK.
The success which has attended the Conversion Loan must have a considerable influence upon the course of the investment markets for some little time to come. The public has set its seal upon the national credit being established on a 3i per cent. basis, and that fact must have its influence upon all other investment securities. As against this consideration might, perhaps, also be set the probability of the cheapness of money quickening the activities of other borrowers. So far as can be gathered, however, most of the early issues of importance are likely to be those of a conversion character. Australia and some other countries will probably seize the oppor- tunity to convert high interest stocks into lower interest. bearing loans. That fact again in its turn will probably increase the demand for all securities giving a reasonable rate of interest, and while the conditions I have described may, it is hoped, also have a stimulating influence upon industrial borrowing, and finally upon industry itself, I think, however, that trade will have to make a very pronounced revival indeed before any material effect can be produced upon money rates, and it is the cheapness of money which seems likely to exert an influence upon the investment markets for some little time to come.
Previous page
