TRADE REVIEW

Ashburton Guardian, Volume 49, Issue 68, 31 December 1928, Page 6

TRADE REVIEW

FINANCE DURING THE YEAR.

LANCASHIRE'S BRIGHTER HOPES

(United Press Association— Copyright.) LONDON, December 29. The year is drawing to a close with conditions on the Stock Exchange far more satisfactory than appeared likelv a fortnight ago. The stagnation then prevalent has disappeared. For the last ten days there has been a lair amount of activity, both in investment and 'speculative stocks, though yesterdav's less favourable report of the Kind's progress brought about a more subdued tone, with a slight reaction in the prices of gilt-edged securities, which previously had shown ureat strength. . . . The favourable position was largely due to the "bullishness" of the New York Stock Exchange, .whose operators have been huying largely here, chiefly industrials. Among the results of their activity there has bsen extraordinary gambling in Ford Motor shares, of' which 2,800.000 of £1 each were issued here a few weeks ago. Dealings in these stocks opened at a few pence premium, but New York buying steadily rushed them up to over £4 premium. This has since dropped to just over £3. It is calculated that practically the whole issue is now held on the other side of the Atlantic. Summing up the financial result ot 1928, the financial editor of the "Spectator" says: "The year has been profitable for the financial community generally including banks and the Stock Exchange. It has been satisfactory to holders of public securities generally, but sympathy must be extended to 'holders of Home railway securities, which experienced a heavy fall. In this connection it may be noted that, in the 'Bankers' Magazine,' 365 representative securities showed for the year an increase in the aggregate value amounting to 3.8 per cent., fixed interest stocks having advanced 1 per cent., and valuable dividend securities about 8 per cent." ■ Lancashire is looking forward hopefully to steady expansion of trade as the ~ result of the treaty between Britain and China. One of the main reasons of industrial distress in Lancashire since the war has been the slump in trade with the Far East, of which cotton goods farm the chief export, and which diminished to one-quarter of the pre-war volume. Sir Kenneth Stewart, who was a delegate to the Tariff Conference in Pekin which preceded the Treaty, says that the immediate effect of the Treaty will be distinctly favourable. The new rates of duties will not be the least likely to damage the Lancashire trade, eyen though, in some instances, they are higher than at present."