MONEY MARKET

Wairarapa Times-Age, 29 July 1939, Page 8

MONEY MARKET

CONDITIONS IN LONDON INTEREST IN NEW ZEALAND LOAN. HIGH CO?JMODITY PRICES EXPECTED. By Telegraph—Press A'/o.iauo;-. -Copyright. (Received This Day. 12.4.“ n.’r.J LONDON. ■ - Though the Stock xxchrnge r. over remains low. 'he wrdappreciably increase J price trends suggesting that g 1 e equities are parting company ;;f ;; s long moving illogically in unison, investors are at last beginning to appreciate the implications of the borrow.n o programme. Rising business aciiv. y .s now within two per cent of the 133< worn level. Lew Zealand loans rose a further point. There is some mystery how the ■' /.lance of the loan will be taken up 1 it is not fully subscribed. It is believed that large houses, the discount .narke* and the banks, which are esfiliated ,0 hold between them fifty per cent of the maturing loan, intend tc convert their holdings, but it is felt that the money market is disinclined to make cash application. The New Zealand operation is welcomed in financial quarters, but in view of the onerous redemption terms, industrial circles foresee the possibility of unpleasant repercussions for British exporters unless commodity prices rise. The City now visualises a general upswing in commodity prices, - war or no war. It argues that Government requirements for essential commodities are likely to be increased, if the present uncertainty continues, while war would bring inflation and headlong spending. Commodities generally have reflected this view. Messrs H. Dawson Sons and Co.. Ltd., consider the wool outlook good. The demand for slipes at present gives New Zealand an advantage over Australia. Stocks of fine wool tops are ample for current needs.