UNEASY HOLDERS

Evening Post, Volume CVIII, Issue 133, 2 December 1929, Page 14

UNEASY HOLDERS

GILT-EDGED SECURITIES

COMMONWEALTH FINANCE

LONDON, 30th November

The Stock Exchange has been passing through another period of idleness and depression, and all sections have failed to maintain the improvement which followed the lowering of the bank rate last week. Gilt-edged securities were adversely affected by the ill-advised incursion of Mr. Tom Shaw inf the realms of finance, and, although the Chancellor of the Exchequer repudiated his colleague's threats against war loan holders, there is still a feeling of uneasiness about the markets for such securities. Industrials have been very dull. The collapse of H. S. Home, though it did not come exactly as a surprise, had the effect of further depressing an already weak market. The effect of the' Wall street slump on the London Stock Exchange is shown by the latest valuation .of public securities made by the "Bankers' Magazine" The aggregate values of 205 representative securities show a decline in the month ending ISth November of 4.3 per cent., 278 variable interest securities showin" a fall of 8.6 per cent. But it is interesting to note that high-class investment stocks weathered the storm excellently. There is, certainly a nominal drop in British hinds but this is explained by the fact that the half-yearly dividend on the war loan has been deducted from the price. AUSTRALIAN BANK BILL. . Banking circles in London are displaying considerable interest in the proposals made by Mr. Theodore, Federal Treasurer m introducing the Commonwealth Bank Amendment Bill, and the views expressed by some bankers are reflected in the criticisms of the financial newspapers. Thus the Financial Times" describes one passage m Mr. Theodore's speech as carrying a threat of direct official interference in financial matters which definitely accords with the Socialistic view that banking policy is a national matter and as such should be directed by the Government, but this is likely to be viewed elsewhere with considerable misgiving. The "Financial limes continues: "The Government undoubtedly is faced with a difficult situation, partly a legacy from the past, partly the outcome of forces impossible to control. The great need of the moment is improvement in the country's trade position, but that will not be brought any nearer by tampering with the recognised machinery of international commerce."

"SHORT-SIGHTED POLICY." The "Financial News" says- "Everybody is agreed that the concentration of &°V? thf, hands of the Commonwealth Bank 1S a highly desirable development, in lull accord with modern principles. What is open to criticism is the Government's intention to take power to suspenT it free export of gold, or at least reserve the right to veto any gold shipment of which it disapproves. It would be highly re grettabe were another British ffinion to. imitate Canada's example in plavine tacks with the gold standard. The7lmmediate cause of the efflux of gold froSi 8 tbe adverse trade balanc™ tub ¥• ri rsettled conditions in the international finance markets the can r W T? 17 be fi)le^ hy Arrowing in London. Adverse conditions will not last for ever, m fact, there is reason "o hope for wotw Dgh f°r the be? te befol'e long, so it .would be a very short-sighted policy to take^ emergency measures of a naturo tn react permanently on the countay^dit*B