THE MONEY MARKET.

Auckland Star, Volume LIX, Issue 177, 28 July 1928, Page 21

THE MONEY MARKET.

I • I | POSITION IN MALAYA. j BUSINESS "VERY SICK."' ; j Business is very sii.-k lie;--, follow it.,: I the collapse 01 rubber and the drop in (tin, writes a eurresponilent of the "\Vi!d . Cat Monthly.-'" from Kual.i Lumpur. The' iormer has fallen in six months fvuia 1 7 to yd and less. The Chinese, who are i j tho outstanding .speculators there, suffered ' I most by the rubber drop, and millions of j . j dollars have lieeu lost in Kuala Lumpur! land Shaves in the rubber com-! ! I panics have, of eojix\ gone n-ith The! ruhher market. Also the tin slump has ! been followed by a freeze in scrip. Lon- ! '; don and New York metal buyers in Malaya i '■are not- at all anxious To place orders at' I spot- fVi-n. and for the rirst time foi j "jyears show a. disinclination to buy for- s I j ward. The result is that the tin sliare- : market in the East is well overbought, I I just as it is to-day in -Australia, and it is! 'j equally true of both place that brokers are! ' j "carrying a lot of shares lot their clients, ■ with the result tiiat the market is largely : I a lalse one. Tilings v.iil not adjust them-! . selves to a proper basis until weak share-. holders haw pulled out. There is iffm for' ■ another 'JU per cent drop in most tin! • share prices yet to biing them level with! ; j real values-, in Malaya, nt the moment! -ithe .siicces.-ml flotation of a tin company j II is n practical impossibility. Many of the! tj shows that weie tioated a couple of years I on a .'ioil, in the \aid estimate are in i - till' an .iiixious time. .\t tin.' best tltev will: lilieed all that uood 1,,.:1ia_:.-iilel.t and low i . jc.i-ts '..all ||~ f. ,1- the.'ti. HIGH FINANCE. V' V"' "S'fcctio d * •.:". 1 u: -.he; - j SJI • ; I X, Belgian linaiieier, A. LoeWelisteiu. I .] it is interest to .note that early in i , I -Vprit a company (.lescribed as the Inter-' ,j national Financial Artificial Silk to. was! . ] t"i 1:I in Pat is vitii a capital ot 4<U»jrt.ooo ! i 1: % < 1 Ihf 1 1| • .>pi-i H.s .-~Xg.it ed that the company! . Mas 1 "ijstiuited in -Fiance to participate) ■ j 1111; 1111 -1:1 l!y in th f> development of the! ' j artnir ial siik industry. It has close cort- . j n-'i-ti«»!i with the International Holdint: j aii'i 111 \ e>iuicnt ( ompany. which was to j pi csehted on the board by Messrs. i Allied L"Civen-Ueiu as chairmaii and Mr. I ■| C. L. Fislic . j On May 2 the board decided to hoi ease j the capital fl. > 111 4u.000.(i0il francs to! ■J.-iti.iVju.iiiHi francs by the creation of) I .!Wki.(tili) \ shares "i a nominal value of; b'"_ itancs each. It was repotted that I..Jc'.tifKi 01 these A shares had been .sub-! . -.cubed by tiiiauciai groups and the ie-! ' .naiiiin.' iioO.ooo shares w>-i e to be offered ! t" tli.- public ai a premium 17. fiancs. '