The Press Wednesday, March 9, 1932. London Money Market.

Press, Volume LXVIII, Issue 20491, 9 March 1932, Page 10

The Press Wednesday, March 9, 1932. London Money Market.

Kecent reports of the buoyancy of the London stock market are corroborated to-day in a message which describes the eagerness of investors to take up several new issues. Most of these are domestic; but one was the Nyassaland issue of £2,000,000. This loan presents no exchange transfer difficulty; and it is necessary to bear that in mind when considering the remarkable fact that the issue was subscribed thirty times over. Further, the British Government can exercise a restraining influence over Nyassaland which in New South Wales, say, would be impossible, a fact which makes 5 per cent, in Central Africa look better than 6 per cent, in Sydney. The domestic issues are of course both of a quite unimpeachable kind, public or semi-public, scarcity of money for which, as a financial gauge, would be much more alarming than abundance is encouraging. Finally, it is worth while to note that the issue market has for a considerable time been dull and for weeks stagnant. Up to January 23rd, the total offered for subscription this year was only £1,100,375 as against £10,207,563 for the same period in 1931, £13,988,985 in 1930, and £56,520,116 in 1929, while the whole-year total for 1931 was only £114,290,666 (including conversions) as against £454,888,784 in 1930, £488,764,940 in 1929, and £693,100,056 in 1928. In these circumstances the market tvas ready for a small flood of thoroughly sound investments. But when every is made that caution requires, it remains true that the investor's confidence and the plentiful offer of funds are encouragj ing signs, like the fall in bank rate, the return of foreign capital to London, the strengthening of the balance j of trade, and the success of the emergency Budget proposals, to all of which they are a response. A convenient measure of the change in the investor's temper is perhaps to be found in the difference between the reception of the Nyassaland loan and that of the Mauritius Government loan a few weeks ago. The latter, a very small one, was offered at a price in itself quite attractive and was fully guaranteed by the British Treasury; but, though it was oversubscribed, only three or four times the required capital was offered. In the course of a month or two optimism has revived, to a degree which it may be premature to say is wholly justified but which is at least nof reasonless. Even as evidence, in its own class, of Great } Britain's ability to accumulate savings for investment in a period of unexampled stringency, the facts recorded in the cable message are heartening. But it would be a little hasty and foolish to think that they mean that New Zealand can now hopefully apply for a share, and should. There is not much doubt that the British investor is at present more distrustful of oversea investment than for very many years; but even if he did not feel that his money is safer where it is most needed, at home, and if he were much readier to send it. oversea, New Zealand should not hurry to get out of trouble by an easy way, which was one of the easy ways in.