FINANCIAL NOTES
RECENT CAPITAL- !MUM.
How far the somewhat lethargic response to recent fresh issues of capital of a gilt-edged character must be attributed, to a diversion of interest to• the more speculative descriptions, or
how far it be due to a drying up ofinvestment resources, it would be rather difficult to say. No•ctoubt to 'sonic extent the mere knowledge that the issue of high-class investment stocks is likely to be on-u large scale for some time prompts the canny investor to hold babk on -each-issue on the idea either that the loan itself will subsequently be obtainable at a small discount or that later loans will be offered upon even more attractive terms. - • It must not be forgotten, however, that even within the last few Weeks COlonial and other invest- ment issues have amounted- to a good many millions, and it May be doubted whether the present Margin - of surplus
' savings- is a very large; one.. At the :saihe :time, it is also probable that a great deal of surplus capital is being held back at the moment owing to the uncertainties of the outlook, and it is that circumstance, which estijains to some extent the easy conditions in the short` loan market; although discount rates are quite firm. - • ' *
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