YEAR’S FINANCE

Dominion, Volume 23, Issue 81, 30 December 1929, Page 9

YEAR’S FINANCE

DISMAL SUMMING UP OF 1929

HEAVY LOSSES AND FAILURES

OUTLOOK FOR 1930

(United Press Association.—By Electric ‘Telegraph.—Copyright.)

(Rec. December 29, 5.5 p.m.)

London, December 28.

Financial writers summing up the .year 1929 are almost unanimously dismal, and only a few of them show much inclination to be optimistic regarding 1930. To quote one authority: “The past year has not been good, either in the financial or the business world. Industry has languished, exports have shown a small decrease, even compared with the unsatisfactory figures of 1928, while the losses sustained by financial institutions through failures in one direction or another, to say nothing of the losses suffered by the public through the fall in share values, have probably been greater than for many years past.” A Ray of Hope.

There, however, is one writer who holds out a little ray of hope for 1930. The “Economist” says:— “The Stock Exchange, though still overhung by a cloud of uncertainty till the Hatry settlements are completed, so far has weathered not only the domestic storm, but the depression from across the Atlantic, which came with cyclonic force in the financir.’ world. We faced and met a crisis which threatened even to endanger the gold standard in this country, but the Bank of England at the critical moment took a’ course as bold as successful, and the year closes with confidence. Money will go still cheaper, and Great Britain’s monetary position in regard to gold need cause no anxiety.” Year’s New Capital Issues.

An illustration of the unsatisfactory year the Stock Exchange has had is given in the returns of the year’s new capital issues in London, which show a reduction of eighty-four millions compared with 1928, although the total that year was exceptionally high. Al; together the new issues for 1929 totalled 285 millions, compared with 369 millions last year, and 355 millions in 1928. Of this year’s issues, 198 millions were for the United States, including £65,400,000 of Government borrowing, while British possessions issued sixty-one millions, of which £26,300,000 was for Governments and foreign countries’ issues amounted to £26,200,000. Commenting on these figures, the “Economist” writes: “Investors in new issues, even of the highest class, have seen their holdings in a number of instances undergo serious depreciation. The prospect of comparatively cheap money in 1930 encourages the hope that sound borrowers at least will be able in the near future to make issues on the London market on better terms, and with more propitious chances of success. It is clear, however, that the progress of restoring activity on the new issue market .as a whole is likely to be slow, and the public, after the experience of the unsound boom in 1928, is likely for some time to exercise considerable discrimination between offers.”