THE MONEY MARKET.

Ashburton Guardian, Volume XLVI, Issue 10457, 25 July 1925, Page 3

THE MONEY MARKET.

BETTER OUTLOOK IN LONDON. LOCAL SHARE MARKET STRONG THE WEEK ON 'CHANGE. (By "Investor.") (Written for the " Guardian.")

The comments by members of the | British Government on the placing of J three-quarters of the latest Common- [ wealth loan in the United States corroborates the view that Britain is unable to lend on the old scale because the surplus funds are not available. British trade -and industry have hot yet emerged from their post-war depression, and it is reasonable to suppose that the surplus available for foreign investment has been considerably curtailed in recent years. There seems no reason, however, to anticipate an era of dear money in London, reflected later in Australia and New Zealand. Gold has been pouring into London recently, and a lowering of the Bank Rate in the near future is regarded ae inevitable. So far as Australasia is concerned, the readiness] of the United States' to - lend money at a trifle over 5 per cent, removes fears of a serious financial stringency in the immediate future. What New Zealand and Australia have to worry about is a curtailment of Britan's purchasing power due to a continuance of trade depression, which, of course, would mean lower prices for our produce. But there are no certain indications of such a movement. The conditions of to-day, commercially speaking, with the exception that exchanges are now on a gold basis, are not radically different from what they have been for the last four or five' years. Britain has survived a very trying experience, and she may be expected to go on surviving it until her statesmen find a way to restore trade and industry to their old vigour. The general tone of the New Zealand share market this week has been strong and confident, and there has been plenty of money available for investment. Share values that have been pushed very high in recent weeks, such as some of the banks and insurances, have shown a receding tendency, but the movement has been accompanied by a steady increase in the value of other securities, so that little significance is attached to the de- f creases. I

Government Stock Steady. The Government Stock market has been moderately busy at unchanged values, tax-free (4i per cent'.) issues selling at £97 all round, and 5J per cent. Inscribed Stock at £lOl ss. Ups and Downs of Bank Shares. A sale of Bank of Australasia at £l4 lis compares with sales at from £l4 10s to £l4 12s during the last fortnight.. Commercial of Australia (old), which last had sales at 31s and 31s 3d, sold this week at 30s and up to 30s 4d. But the preference shares, last reported in traffic at £6 13s 6d five weeks ago, are 4s up with a sale at £6 17s 6d. National of Australasia (£5 paid) continue to advance. Thev sold last Week at from £8 3s 6d to £8 ss, and this' week at from £8 5s to £8 Bs. National of New Zealand, after sales ex div. at £6 10s last week, improved this week to sales at £6 11a. New South Wales continue erratic,' transactions this week being at three prices—£4l 2s, 6d, £4l ss, and £4l 10s —the same figures as were recorded last week. Bank of New Zealand have been weaker this week, sales ranging from 55s 6d to 56s 3d, as against sales at from 56s 1 9d to 57s last week. Buyers and sellers of Bank of Victoria have raised their quotations 6d to £7 9s 6d—£7 12s 6d respectively. Union Bank, which had sales last week at £l4 17s 6d to £ls, sold this week at £l4 16s 6d and £l4 17s 6d.

Decline of National Insurance. In the insurance group National, after rising from 70s 6d to 79s in a month, presumably as a result of the revival of an old rumour that the company is going to; be bought by one of the larger concerns, started to decline last week, when there were sales at 78s 6d. Another Is 3d dropped off the value this week, sales being effected at as low as 77s 3d. There has been no business in New Zealands, and quotations are unchanged at buyer 34s_ 6d, seller 355. South British have remained firm with sales at 49s 9d and later at 50s, equalling last week's price. These shares reached their peak early in I June, when a parcel changed hands at 50s 9d.

Loan and Agency Shares. Loan and Agency shares for once in a way have had a steady market. Dalgety's have had further sales at last week's price of £l4 12s 6d, Goldsbrough Mort had sales at 47s 4d and 47s Id, the same as last week, and Goldsbrough Mort rights have changed hands at the lame price as last week, 9s 6d. In shipping shares the only business of note has been the sale of a parcel of Huddart Parker (ord.) at 44s 9d x the same as last week. Meat shares are meeting a dull market. Refrig. contributing are a penny down, with no sales at above 9s 2d, and Gear Meat have been sold at 42s 6d, a shilling lower than the price paid last month. Brewery Shares Active.

A fair amount of interest has been taken in brewery shares this week. New Zealand debentures, which have been st-eadv at within a .penny of 22s for months had sales this week at 22s 3d. The shares, on the other hand, have dropped Is 6d to sales at 39s 6d. Manning's ara a shilling up with transactions at 38. and Wards, which a fortnight ago sold at 58s and 58s 6d, have had a. sale this week at 58s. Practically no business of any importance has been transacted in the miscellaneous and industrial groups. In mining Waihi are steady at Inst week's closing price, 25s 9d, and Kawarail have recovered Is 6d, rising to sales at 13s 6d, with buyers quoting 13s 9d at time of writing and sellers at 16s 6d.