FINANCIAL NOTES
RISE IN FOREIGN STOCKS.
QurrE the outstanding feature of the financial situation at the -moment is the-continued ease in money, and under its influence high-class Investment securities keep as firm as a rock, while there is a growing demand for the better class Foreign Govern- ment securities, many of which, including some of the European Reconstruction Loans, may be said to combine a fairly high yield with reasonably good security. The German 7 per cent. Loan, for example, which practically constitutes a first charge over the whole of German assets, yields about 7 per cent., while the Hungarian Loan gives a flat yield of over 7f per cent. and the Austrian 6 per cent. Loan nearly 6f per cent. There has also been a fair amount of activity in the Speculative Markets and Rubber shares have kept very firm. The exception to the general cheerfulness of markets is the section for English Railways which, together with shares in the Iron, Coal and Steel group, remains under the influence of industrial depression and Labour unrest. Whether the monetary ease will lead to an early reduction in the Bank Rate is not quite clear at the moment, but discussions of that possibility have played their
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part in contributing to the firmness of investment stocks during the week, while the market is also imbued with the idea that sooner or later conversion schemes must exert an influence.
A slight setback has occurred in prices since the foregoing was written on the announcement of a fresh offering of 31 per cent. Conversion Loan for £40,000,000 at the minimum price of 761.
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