READY MONEY.

Press, Volume LXVIII, Issue 20491, 9 March 1932, Page 11

READY MONEY.

IX)ANS IN BRITAIN OVERSUBSCRIBED. i i BUOYANT MARKET. OP fBBINGS TOTAL £125,000.000. OFFICIAL wireless.) Received March Sth, 5.5 p.m.) ItUGBY, March 7. Mitotic Or «» °> ,1500 000 of 5 per cent, stock by i Metropolitan District Railway 1 Jed to over £50,000.000. This third big recent issue of stosb vlsviJy oversubscribed. Xfca Croydon Corporation asked ior £730,000, »» d was O,rerod £ Government reW £2 000,000 and tho applications SEa a total of about £60,000,000. jLje oversubscriptions arc regarded demonstration of the groat change jj,! has come over the investment gjjket during the past few weeks. KEEN demand for STERLING. FOREIGN PURCHASES. BANK RATE REDUCTION ANTICIPATED. KHHI TZL33 ASSOCIATION -BY EI.ECTKIC TMJSOBiPK—COPYRIGHT.) (Eeceived March Sth, 3.5 p.m.) LONDON, March S. Although a number of industrial stocks relapsed owing to French selling, ilie firmness of British funds was maintained and several Australian State stocks improved by 20s to 40s. He financial editor of the "Morainf fWt" says: The removal of foreign restrictions has led to the aimohtion of foreign purchases of idling both spot and forward, as *«]] as increased offers of short-term foreign balances to the banks, with mult that tho problem of the kmr is to prevent sterling exchange rising too rapidly. Ha situation is peculiar and difficult as trade activities will not permit a profitable economic use of large foreign balances. The reduction of the bank rate on ilareh 10th teems a foregone conclusion. MARKET lOR NEW ZEALAND. BUDGET PLAN WANTED. ► %OCAL COMMENT. I Jfcat tie over-subscription of loans in • lipdoa indicated a movement in banksuitor tban any revival of industlilWlfldenee was the opinion stated ijMt William Machin, president of the Initiated Chambers of Commerce of 'Sflf Zealand, when these two cable ''iSteiNSra referred to him last #*• ' Ijfr Ha chin said that the over-sub-SSptioa of new capital issues had been .Mf on at Home since January. At hum time he did not think that ■thaiwa anything in the present state <4Briiiili industry to justify it. There 'VIMt aifit in tho British trade returns rfcwjyort the assumption that more was required because business ** •JJHading. Tho volume of British fot the year ended December j W) 1931, was 21 per cent, less than j -8# previous year. Indeed, ho ■that the only interesting and news on the condition of xade was the statement that taken at the Industries Fair "WBatedto £5,000,000. .A New Zealand Loan, tjjlp.possibility of New Zealand to raise a loan under these 1 *ffi3*B&itions he said:— ifSRW 10 anything about. New Zca"•wjWay that invites subscription or 2J*l*eription to any loan that we *Vufl>atf Our trade has fallen, and is po thing in our primary produce F**-to justify tlie idea-that our ingoing to be larger. If our" in- **** ia Bot larger, our resources for taxation will bo no greater, capacity for employing money WMMlly j n order to pay interest on ** will therefore be no greater. 2* * position is not encouraging to TYSfo investing in securities." ' did not think it imposthe New Zealand Government I'ftSiS? B*' 8 *' k® thought that the j*v^ a 6at should first show a plan to *® M#r Budget over a period of ' years. Thus it could proba certain amount of money, elt was necessary for the lave. ck Action Needed. >ing that the present stage and investigation will pass that we shall immediately "finite and considered plan ttture," added Mr Machin. finance Minister can go Jo f public with the facts." >t see that a reduction in to in England would have i the bank rate in New Zeathe latter, in Lis opinion, d by the rates offered by rapeting institutions, most r erament institutions. ' Banker *8 Opiniou. lence of tho cablegram is gly in favour of the cona complete change in the ■took of Britain has come tly, commented a City « last evening. "Ordinariaya when Britain was on wdarfl, the bank rate was rest an undue outflow of crcd when gold stocks were *y heavy, but in this case, "-subscription of loans and ertainty of a lower bank simply to healthier monein England. It ia weli » >auk rate in England, he have no moro than an inlight beneficial effect upon t New Zealand, and there mi to assume that it would by a reduction in the New k rate. not be wise to make any tho New Zealand bank rate

movement at the present time,' said the banker. "Things-in tho Dominion should resolve themselves in a very short while, and a statement may be made then." A Dominion Loan. Discussed. Asked whether the cabled news did not .seem to indicate that New Zealand, if desired, could float a loan on the London market, he remarked that New Zealand's financial plight was- well known to British financiers,, and he doubted whether a Dominion flotation would be well received in spite of tho obvious surplus, available for mvcst"ciearly, the balancing of the British Budget had gone a long way to restore the confidence of the British investor which is now so clearly Dressed. New Zealand had yet effectively to balance her Budget. When that'was done, the time might have ar£.aTSay to England: "We h.v.adiusted our own finances; can you Xer assist us?" He thought the country would be unwise to seek an English loan while or own affairs were "in such a tangle." A rebuff from the British investor should not be Discussing the possibility of New Zealand local bodies securing some stare of England's surplus money the banker said that that, too, was unlikely. banker sa thnt confidence inosition of New Zealand had m the p° <<lt ig a jj a ma tter yet to be • . conclusion. £,2?t St. a'Jof 4 ... investment, but r^r be plaS -til a it will not F rifving of our position BUde t'ho n W ay tlV'Soratta of eonSS£i2X™.th« o W-: England is all to the g