Finaticig- Notes
BRITISH FUNDS • LOWER.
PRICES in the Stock Markets during the last few days have moved somewhat irregularly, and an outstanding feature has been the very generalAet-back in British Funds. A number of causes have contributed to the reaction; among them, perhaps, has been the currency crisis in France, to which-I refer in a sub- sequent paragraph. I doubt, however, whether the fill in the franc has had any great effect upon Government Stocks, and I should be more inclined to attribute the setback to the fact that following upon the allusion by Mr. Chamberlain in his Budget Speech to the possibility at 'some later date of converting Local Loans, speculative operators bought British Funds very freely, and now with no sign of an immediate con- version operation, profit-taking has ensued. Moreover, a further stimulus to the selling has been supplied by retorts that ere long we shall see a resumption of new capital issues of the trustee and gilt-edged character.. Other sections of the Stock Exchange have been fairly good, though Trans- atlantic shares have been affected by fears of confusion in America following the N.R.A. decision. Oil Shares have been active and strong, and Gold Mining Shares have on the whole been well maintained.
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