STOCK EXCHANGE YEAR.

Auckland Star, Volume LX, Issue 292, 10 December 1929, Page 9

STOCK EXCHANGE YEAR.

I • CHAIRMAN'S REVIEW. TREMENDOUS TURNOVER. INVESTMENT HABIT GROWS. In his presidential address to members of the Auckland Stock Exchange to-daj Mr. G. C. Creagh said the year just closing had bee a remarkable for the tremendous turnover in shares and stock* of all classes with the single exception of gold mining, which had been somewhat under a cloud. The amount of business transacted probably constituted a record for the Exchange, to which it was becoming increasingly evident the public were turning more and more for the investment of their surplus capital. Thie was only to be expeetea, ana was in line with the experience of older countries. where the Stock Exchanges were regarded as national institutions funcj tioning unremittingly and usefully where the financial requirements, of the people were concerned. It was far too generally thought that the Stock Exchange of to-day existed for the sole use or guidance of the capitalist or speculator. This was an entirely erroneous idea. The institution was just as much available to the comparatively small investor who was seeking a ready and reasonably safe avenue for his hard-earned savings. A licensed sharebroker was in the very best position to proffer sound advice as to the beet class of investment for a particular person, and was, moreover, able to minimise the risk of loss of capital that might otherwise attend an unconsidered investment. In New Zealand, before a stock could be listed on the Stock Exchange it was subject to the closest examination at the time of application, with a view to discovering whether the company was being conducted in the best interests of the shareholders. A listed corporation must regularly furnish a balance-sheet for the perusal of its shareholders.

Underwriting. In connection with underwriting, Mr. Creagh said the committee had given serious consideration to the formation of a company subsidiary to the Exchange which would undertake the underwriting of new issues of municipal and other debentures, and possibly company shares. The formation of such a company, if it could be accomplished, would undoubtedly be a distinct advantage to the Exchange.. Should it prove impossible to bring it about, then he had no hesitation in saying that the Exchange itself a-s a body should undertake the work. Attention was again called to the necessity of a revision of the Companies Act. Gold Mining. It. was to In 1 regretted that there was nothing to report in the way of fresh finds of any importance as the result ->f prospecting work carried on during the year. A general feeling of optimism, however, prevailed amongst prospectors and those who had invested their capital in search for the precious metal and much energy was now being devoted to devising means of extracting bullion from lodes of low grade whjch it was believed existed in several parts of New Zealand. Hang On to Gilt Edges. Commenting on the depression recently affecting the stock markets of the world. Mr. Creagh said: "So far as the depression which has recently been affecting the Australian and New Zealand markets; is concerned, I would like to express the | opinion that the policy of rushing out -itj good and tried investments adopted by so many at such a time is. not always j the wisest, and only too often helps to I make a weak market weaker. Holders' of gild-edged stocks would, I am con-j rinced, in the majority of cases, by hold- j ing on, act in their own best interests.' Optimist's Outlook. In conclusion, the chairman said: "While there may be" those who, partly as a. result recent happenings, are doubtful about the future, I for one see no reason for despondency, and. as I have repeatedly done for many years past, I once again wish to strike the optimistic note.

"With a country such as ours the possibilities for future progress and prosperity are almost illimitable, and I do not for one moment think that there is anyone, however pessimistic, who will question that New Zealand is only just, so to speak, getting into its stride, and that from the foundations which have been laid there must arise a great, virile and prosperous people."