CORPORATION LOANS.
British Funds and other gilt-edged securities have not escaped the dullness which has characterised all sections of the Stock Markets during the last few days and, among the influences operating, must be included the very numerous issues of Home Corporation stocks, chiefly in 34 per cents. at the price of tot. More than one correspondent has expressed surprise that it should have been possible to issue these loans on terms giving at certain times even a slightly higher yield than that obtainable on the Government's 3L per cent. War Loan. The chief explanation is of course to be found in the fact that these Corporation loans have a fixed date of redemp- tion, whereas in the case of the 34 per cent. War Loan, redemp- tion in 1952 is at the option of the Government. Nevertheless, the outpouring of Corporation loans at a moment, too, when the National Defence bonds appear to be still " on tap," has acted as a drag upon gilt-edged securities, and therefore there was a feeling of general relief when it became known that the Essex County Loan recently issued would probably be followed
by a fairly long pause before other Corporation issues were offered. Although the Essex County loan was for the large amount of Li,7oo,000 in 34 per cents. at rot, it came out under good auspices and was so well applied for that applicants only got about 65 per cent. of the. total applied for. Never- theless, by reason of the general dullness of markets and
probably also because premium hunters were among the appli- cants, dealings in the scrip took place at about 4 discount.
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