FINANCIAL NOTES HESITATING MARKETS.
Elsewhere I have dealt with the broad tendencies affecting securities over a lengthy period. Just now, however, there are the usual temporary influences to be reckoned with. These may be very briefly summarized. High-class investment stocks are affected at the moment by somewhat conflicting influences. On the one hand prospects of firm money rates, new capital issues and Government debt maturities early next year are among the damping influences. On the other hand it is possible that for the moment prices may be steadied and even strengthened by the reinvestment of Government dividends to the amount of over £20,000,000 disbursed on October 1st, while two months hence there will be further disbursements of 150,000,000 in the War Loan dividends. In the speculative markets the feature of late has been the revival of interest in rubber shares, following an advance in the price of the commodity. How far that rise may have been due to American buying with the object of keeping the price of rubber above the level which might lead to a curtailment of exports from the Dominion territories it is difficult to say, and equally it is difficult to determine whether the rise in rubber shares is likely to go far in the immediate- future. Shares, however, have been well held thoughout the decline of the present year, and there appears to be no change in the view that within the next year or two consumption of rubber is likely to grow more rapidly than production.
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