(Continued from page 589.) PREMIUM HUNTERS BUSY.
Readers of these columns, if they were not well acquainted with the ways of finance, might imagine that the great rush for some of the recent new issues of capital denotes a sudden and great increase in the volume of savings available for investment. When we hear reports that applications for the Bristol and Birmingham Loans together possibly amounted to £150,000,000, visions arise of colossal sums awaiting to be invested. The actual explanation, however, is more simple. A few weeks ago, when equally good securities were offered, the response on the part of the public was small. That, however, did not necessarily reflect a drying up of investment resources any more than the recent rush represents a sudden addition to the nation's savings. The explanation is that whereas two months ago markets were so dull that applications for new issues were confined to the really genuine investor, the recent boom in gilt-edged stocks has created such premiums on new issues of capital that there has been a big speculative rush to obtain allotments with the idea of securing a quick profit in the shape of the premium on the scrips.
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