Cheap Money Has Finished

Hawke's Bay Herald-Tribune, Issue 138, 28 June 1937, Page 7

Cheap Money Has Finished

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INVESTORS ASKING FOR MORE Stock Market Recovery At Home DAIRY PRODUCE QUIET

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(Received 28, 1.30 P#Ufi) LONDON, June 27. Recovery at last seems round the eerner. The Government's anaeuneement of the Increased Exchang# JgquaJisatiojn Fpnd caused a hlaziag recovery m gffid share?, while ruhhers, less ipectacularly, aeem on the verge of another small hoorn. Industrials are flrmer, the gilt-edged market alone being intk. The fallure of the Londoo Oounty Council issue, when oaly 15 per cent. wa# taken up, contrasts With their earlier loan when they gqt away with 21 per cent. interest for 25 yean. Those days are unlikely to return as investors are now demanding higher rates, « The last few days have also seen a ■harp rise in the coinmodity iparkets, metals being espeeially promlnent, copper and tin substantially appreeiating owing to the oversold eondition of the market and a fair amount of trade fcqjing, , • Enbii© anetiong of English wool iudieate a favourable outlook for the isejtt series of London saies. Bradford buyers. found prices were higher thqn they autjcipated, A nurober of overseas topraa'kerg who, presumably, had not eovered their xequirements of erossbreds during the New Zealand selling scason, have been aetive, Ameriean Phrehaies of British wool are doubje those of last ygar, while Germany ia alsQ taking more. ■ , After a featureless week, butter deal•?s, h-pparehtly tired of ndmiriug their atocka, are accepting lower prices. Buyers, however, are slow in re■ponding and the market may go easier before interost revives. The position, is very sensitive but Tooley Street merchants expect a gradual eaging in prices rather than an appreciable break. Total arjivahl in May were 41,016 boxea, compared with 45,650 last year, Stocks to June 5 increased by 3,175 compared with the previous month and they now tptal 10,635. Cheese is difficult and there is poof demand, Buyers are covering oply their immediate requiremeuts. Demand for npples and. pears has imprqved and prices are firmer, The Imperial Airways ' jssue pf stock at 30A caused considerable discontent acnong shareholders, many o£ nrjim paid ' over §0/- a share. They wero givejj only preference allottnent of the new issue. Moreover a cominission of 44d a share is being paid to the underwriters whieh the Ifinancial Tiwes describes as "a sheer waste of tlie shareholders ' money,"