The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-10-30

TRADING In LONDON
CHANGES ITS TONE
Interest Shifts to Speculative
Issues as Rubbers and
African Mines.
NEGLECT THE GILT EDGED
Oils and Textiles Are Bought
Heavily-Little Heed Paid
to Dividend Yield.
NEGLECT THE GILT EDGED
Special Gable Despsfeh to Tss sun.


Copyright 1919. all rights reserved.
LONDON, Oct 2s.--various influences
have operated in the last few days to
change the tone Of trading on the Stock
Exchange. Shares Of q speculative char
acter. such as rubbers and South African
diamond mines. have been taken up with
great vim and investment issues of the
gilt edged type have been neglected.
Oils and textile shares also have been
heavily bought.
Little attention Is being paid TO diyi-
dend yield. purchases being based almost
solely on hope for accretion of the prin-
cipal In short time. Buying Of the
above classes of shares developed into
what might be termed a bull movement
Of moderate dimensions The reason
for such a boom In speculative issues
Is readily diseerned,
The most unsettling influence has been
the crisis In the Government and the
sudden realisation that the national
finances had reached a critical stage,
with the definite statement that the fis-
cal year will show a deficit Of s2.s6s.-
225,000 In Government revenues.
1t is taken for granted that another
war loan will have to be fioated and
this is hanging like a pail over the In
vestment market, eliminating many pur-
chasers who would be taking standard
shares.
Fear of Capital Levy a Factor.
The next factor is fear of capital
levy. II such a levy should come--and
l.. Is being taken seriouF.y-it would take
away a big slice of sill fortunes. There
are naturally those who are discounting
the thing already by making what they
determine to be the quickest use OF the
money that the Governmers may take.
They are buying speculs I'VE shares In
the hope of recouping, In a sudden mar
ket boom, enough to pay the tax COL
lector and have their original fortunes
left.
Ever since the annual report of q big
rubber company last week In which the
chairman said he believed the world was
facing a rubber shortage instead of the
much talked of overproduction rubbers
have been bought eagerly, The diamond
discovery in South Africa and reports
that 100000 shares of De Beers Con-
solidated were being bought at $3.50 by
a New York syndicate for American in
vestors has caused a similar movement
in that group.
The textile industry is prospecting as
never before. aad several offerings Of
textile shares that have come on the
market were taken readily. There Is
nothing new In stating that oils are
active. but now and then the buying
takes on added vigor. and one of those
periods prevails.
Stock Market Is stiN stable.
In view of many problems political
md economic looming up from day to
day the stock market remains remarkably
stable. There is. however. ample war
rant for that strength. England Is COM
paratively quiet In contrast with diff
culties arising In other nations, and no
strikes worthy of mention are In prog
ross. The railway debacle, which caused
no end of suffering, has almost been for
Gotten and. unemployment gradually Is
being alleviated. Thus only the peren-
NAL high cost of living and other trou-
hles common to the world In general to
struggle with are left Speaking from
the speculative viewpoint, conditions ia
ing their opportunity.
Barclays Bank. which has been the
clearing house for north Russian rubles
and agent for the Russian issue of paper.
ceases to act In that capacity on No
vember l. The phenomenal success OF
the British branch banks in France and
elsewhere has led to capital increases.
The London County and Westminster
Bank has just increased the capital of
its Paris branch from 100000 to s10,-
900, 900 and will open a branch soon at
Nantes