EASY MONEY CONDITIONS

Sun (Auckland), Volume II, Issue 371, 4 June 1928, Page 12

EASY MONEY CONDITIONS

LONDON STOCK EXCHANGE IN GOOD TONE MUCH NEW CAPITAL fLnited l'.A.—By Telcgraph — Copyright) jilt'd. 9.5 a_.rn. LONDON, Saturday. Although business on tlio Stock Dxeh.'inge has been on a small scale during the past fortnight, as is usually the case in the Whitsuntide holiday period, the tone throughout has been firm. Gilt-edgeds have shown n pronounced strength, these benefiting by the «-;i.so of the monetary conditions, and the shipment of £4,000,000 worth of gold to London from the United States, and the payment of £50,000.000 interest ori the 5 per cent, war loan, of which some portion is expected to be used for reinvestment. In this state of affairs there has naturally been some talk of a possible reduction in the bank rate, bur. the best-informed people do not expect a reduction, as they are doubtful whether 4 per cent, could be maintained over September. Under these favourable monetary • onditions, numerous new’ capital flotations are expected, and one already appears in the shape of Tanganyika per cent, loan at £96£, guaranteed by the British Government. May was a very busy month as regards capital issued, new money flotations, according to the Midland Bank's statistics, exceeding £39,000,000, which is easily a record for May. The total for the twelve months amounted to C 336,229,000, which is the highest since 1920, when the amount was £ 357.735.000. Th* figures exclude all direct borrowings by the British Government.