AMERICAN FINANCE

Dominion, Volume 22, Issue 71, 17 December 1928, Page 12

AMERICAN FINANCE

STOCK EXCHANGE ACTIVITIES WALL STREET RECORD Recent cable messages have made frequent references to the tremendous activity in Wall Street. Official reports received by Mr. Julian B. Foster, American Trade Commissioner for New Zealand, show that trading on the New York Stock Exchange (luring October was the heaviest of any month on record. Sales totalled 99,077,455 shares, a gain of 8.170,000 shares over September, the previous record month, and of 38,600,000 shares over the total for October, 1927. The daily average turnover for the month was only slightly below the four-million-share mark, and a new record was established for the week ended October 20, when sales totalled 24,443,680 shares. Continuing the movement started in September, the general trend of prices was steadily upward until the 25th, when a decline set in, and the mouth closed with prices irregular and lower. The New York "Times” average of 50 combined stocks opened the month at 205.33, established a new high record of 213.69 on the 24th, and closed the month at 208.94, a net gain of 3.61 points. Dealings in bonds amounted to a par value of 234,548,500 dollars, a decrease of 7,742,000 dollars as compared with the previous month, and 20,114.000 dollars below the corresponding month last year. The average of 40 domestic issues opened the month at 90.75, and closed at 90.71. Money Rates. Money rates during October were somewhat lower than in September, but remain considerably higher than at this time last year. New call loans and renewals averaged 6.957 and 6.935 per cent., respectively, as compared with 7.394 and 7.250 per cent, in September, and 3.853 and 3.871 per cent, in October, 1927. The month’s range was from 10 per cent, high to 6 per cent, low, and closed, at 7} per cent. Time loans also eased somewhat during the month. Opening with a range of 7| to 7i per cent, for all maturities, a slight drop was recorded in each succeeding week, and the month closed with rates at 7 to 6J per cent. Federal Reserve Statement. The combined statement of the Federal Reserve Banks for the week ended October 24, when compared with the similar week in September, shows a further increase in the amount of bank credit in use. Although the member banks have reduced their borrowings from the reserve institutions to the extent of 98,839,000 dollars, this has been more than offset by an increase of 138,059,000 in the purchase of bills in the open market, to provide credit for seasonal commercial expansion. Holdings of Government securities have increased by 2,015.000 dollars, and the net result brings the total amount of credit outstanding to 1.548.182.000 dollars, an increase of 40,385,000 dollars for the month, and of 333.423,000 dollars when compared with the like week of last year. The reserve ratio now stands at 68.0. as compared with 68.5 last month, and 75.3 a year ago. Brokers’ Loans. The volume of loans to brokers, as compiled by the Federal Reserve Bank at New York, has surpassed all previous records. For nine consecutive weeks, the total amount of credit thus employed has registered large increases. In the last week recorded, the gain was no less than 107,903.000 dollars, bringing the total to the unprecedented figure of 4,772,293,000 dollars. This represents a net expansion of 962.270,000 dollars since January 1, 209.053.000 dollars above the previous high record established in June, and 1.328.516.000 dollars above the level for the corresponding week of last year. The expansion during the past month is attributed to the tremendous activity on the stock market. Gold Movement-. Movements of gold through the Port of New York during the month, show a net import balance of 10.045.000 dollars. Exports totalled 2.642.000 dollars, while imports amounted to 12,687,000 dollars. September and October were the only two months in which import balances were recorded since August, 1927.