TRADE IN BRITAIN.

Ashburton Guardian, Volume 49, Issue 20, 5 November 1928, Page 5

TRADE IN BRITAIN.

THE FORTNIGHTLY REVIEW. REACTION IN SPECULATION. (United Press Association—Copyright.) LONDON, November 3. A change came over the Stock Exchange during the last week, the plethora of new issues having proved more than speculators could digest.. A reaction in these speculative industrials was inevitable after such a prolonged upward movement, and it is consequently not surprising that there has been considerable liquidation, notably of shilling shares. There has been nothing like a panic, hut many of those new shares have fallen sharply and numerous speculators who thought they were making easy money by buying them have had a salutary lesson. But while speculative stocks have been having a bad time gilt-eldges have been holding their own fairly well, and though business in them has been small, quotations have moved within narrow limits, and war loans closed strong. Colonials have generally been quietly steady, and though the City of Sydney loan met with such poor sunport, and dealings in it opened at seven-eighths discount, underwriters are not perturbed, for, as one' financial newspaper points out, the stock is likely to be readily absorbed, as the gilt-edged market is short of stock at attractive buying prices. The end of the Stevenson rubber restriction scheme has not so far had any effect on the market, and the host informed people do not anticipate that it will cause any serious fall, for it will he remembered that prices de dined sharply when the Government announced the abandonment of the scheme on April 4, so that the effect of removing the restriction has been discounted.

There has been some anxiety regarding stocks which have accumulated at which are variously estimated at jgffeen 75,000 and well oyer of raw rubber, which it was feared might be thrown on the market all at once, but it is now believed that there is no dangeg of tin’s. In its nuarterly trade forecast the Federation of British Industries states that the outlook continues unsettled but with a prospect of improvement in the new year. The Federation adds: “ There are many indications that the Bank of England may soon he in a sufficiently strong position to exercise something approaching its pre-war freedom of action, thus making the actions of the New York Federal Reserve Bank of less consequence, and unless tliero is an abnormally drastic restriction of credit in America there is no reason why tho new year should not see considerable easing of our internal monetary problem, accompanied even by a reduction of the bank rate.” Scottish joint stock banks contemplate an interesting innovation wliich is likely to encourage thrift "'amongst the humblest classes of the population. Tho proposal is to open deposit accounts for any sum from Is upwards, allowing the usual Savings Bank interest of Vi per cent. Hitherto the banks have not opened deposit accounts for less than £l. The course now proposed will open the doors of Scottish banks to a large new class of depositor previously barred unless be were resolute enough to save un piecemeal his first £l. The joint stock banks will thus be in competition with the Post Office Savings Bank and similar institutions.

The report of the Indian Tea Association for the season 1927-28 contains interesting statistics which show the consumption per head of population in 1927 reaching tho highest figure yet attained, just over 91b, which is almost double tho figure for 1880. and nearly eio'bt times that for 1840. the year when statistics of tea were first kont. The increase seems confined to tea alone among tho beverages, since the figures of coffee and cocoa have been comparatively stationary since 1920, and in both cases are less to-dav than in 1918. less than lib of coffee being consumed per head in 1927 and 2 l-31b less cocoa.™ Australian Press Association.