Financial Notes
CONTINUED DEPRESSION.
APART from high-class investment securities which are still under the influence of cheap money, the Stock Exchange has been in a dull and depressed condition during the past week. Moreover, it is to be feared there is a logical connexion between this dullness and the strength of gilt-edged stocks, for while the latter are certainly aided by cheap money, the strength of the market is also partly due to increasing timidity with regard to the more speculative markets, and this timidity is literally driving investors into British Govern- ment stocks. Rightly or wrongly it is believed that the Treasury is endeavouring to use the situation to the best advantage from the Exchequer point of view by creating an atmosphere favourable to debt conversion. This point was probably in the minds of the Authorities in fixing the terms of the present issue of 3 per cent. Treasury Bonds; for the minimum price of issue of In per cent. is cutting the thing rather fine even allowing for the fact that there will be annual drawings for redemption at par.
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