FINANCIAL NOTES
SOME' ADVERSE FACTORS.
Wumr., as' described elsewhere, the activity of rubber shares has continued to be the outstanding feature of the Stock Exchange, general markets received a kind of double check during the past week' as a result of two developments of a very °different kind. British Funds and kindred securities were adversely affected by the sudden announcement (which came just after my notes of last week had gone to press) of the offer by the Government by tender of a line of f;40,000,000 in ai per cent. Conversion Loan at the minimum price of 76f. At the moment the notice appeared, the stock had risen to 76 4-, but it dropped, of course, sharply, and other investment stocks gave way in sympathy. There had been much talk for some time past of the possibility of a conversion operation, if only in view of the large amount of debt maturing in 1927, but the market had not anticipated an actual offer for cash of conversion loan and, in spite of the anticipated ease of money early in September, the effect was to occasion dullness for a time in gilt-edged stocks. Nevertheless the issue was quite well applied for on Tuesday, the total applications amounting to £51,200,000, while the average price was 276 Os. 0.402d.
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