THE MONEY MARKET.

Hawera Star, Volume XLVIII, 24 November 1924, Page 5

THE MONEY MARKET.

SPECULATIVE SHARES

SUFFER A RELAPSE

BY CABLE—PRESS ASSOCIATION—COPYRIGHT

Received Nov. 24, 10.30 a.m. LONDON, Nov. 22. A spell of profit-taking followed a little boom on the Stock Exchange, which marked the return of the Conservatives -to power, and consequently there has been a slight relapse from the highest prices touched by many speculative snares, but the general tone remains good, though the volume of business is somewhat small, and gilt edges really show firmness, a marked feature being a keen demand for script in recent issues. A noticeable instance is the last Queensland lean, which is now quoted at 90s premium. Several new issues of corporation and good industrial concerns have been readily subscribed. In an article on “Empire Exchange Problems,” the “Statist,” after describing exhaustively exchange conditions in Australia, South Africa, and New Zealand, says:,“lt can now be appreciated that the real root of, the exchange trouble is the absence in Australia and South Africa of that degree of freedom of exDansion of currency which exists in this country and New Zealand. The new board of the Commonwealth Bank has initiated a more liberal policy, yetit has not completely abandoned the old oolicy. for instance, it does not appear to offer uiujgstricted rediscounting facilities to joint stock banks; also additions to currency, which we recently sanctioned, aire treated as advances upon which th© interest charged is not subject to the vicissitudes of trade demands, but is required to be repaid within a limited period. Tlie real remedy for exchange dislocation lies in th© adoption of a more liberal currency policy. Australia is averse to this, owing to the fear of inflation, which must be considered groundless, in view of the sound Budget and heavy export balance. Australia ouchfc to allow joint stock bankers to obtain. Commonwealth notes freely by discounting trade bills, and, if the rediscounting of British Treasury Bills were also permitted; a readier means would be offered for converting London balances into local cur-rency.—Aus.-N.Z. Cable Assn.