THE MONEY MARKET

Evening Post, Volume CIII, Issue 124, 29 May 1922, Page 2

THE MONEY MARKET

INDUSTRIALS AND SECURITIES

UNEMPLOYMENT LESSENING.

(DNirED MESS ASSOCIATION.^COMMiHT.)

(AUSTRALIAN ■ NEW ZBALAKD. CABtH ASSOCIATION.) LONDON, 27th May. The reversion to the pre-war system of dealings on the Stock, Exchange and the lengthening of the day's business by an hour; have so far brought little benefit to members, for all the markets nre inactive, the public showing- no disposition to avail itself .of the carryingover' facilities. Very J^tte business is passing, except what would ordinarily bo done for cash. This is,'partly due to a refusal by many firms ho dd contango business, and partly because, after eight years' dealing for cash, the public isnot yet familiar with •. the:. method of contangoing. The Stock Exchange does not expect much contango business f till business, in -speculative stbcks revives more- actively.. STRAITS SETTLEMENT LOAN FALLS FLAT. ' An interesting feature has teen the flotation of 'a Straits Settlement loan of £4,200,000, at'liper cent., issued at 95, terms which are almost identical with the New South:Wales recent issue. The Straite loan proved even less attractive to the public than did the New1 South Wales issue, for the ilnderwrit< era are left with over 98 per cent., the public i suscription' . only amounting '■ to £75,009 The newspapers.regard this as; an indication that the public is of opinion that the jthne is not yet ripe for the issue of colonial loans on these terms, which borrowers will have to revis© if they wish to attract subscribers. TRADE IMPROVING, There are increasing signs that a revival 6f trade is at .hand, nothwithstanding adverse influences like the Irish unrest, labou* difficulties, the complicated European political situation, and uncertainty regarding Germany's reparation "payments. Tliese seem to lie outweighed by favourable factors, "notably cheap money, increasing shipping activity, as shown by heavier entrances and clearances of cargo at ports of the United Kingdom, and reports from world-wide trading centres of the reduction of stocks of raw materials and finished goods to inore manageable proportions. -Unemployment and short-time working in the United Kingdom, thotigh still on a cpn'sideTabls scale, are lessening, and employment shows an increase in nine oub of thirteen leading: inditetrUs in . the t United' Slates. . ' : ' ' BETTER TONE IN NEW YORK. As the Statist, points, out, n- business revival is usually, heralded by increased speculative activity in stocks., of comrriodjtieis, <2essati6n in the fail of. commodity prices arid. a plentitude of loan money at low rates. Tliese three conditions have been fulfilled for some time past. .The effect is more noticeable'1 in New'"York than here. .! As the. depres-sion-originated, in the East and came here via the United States we shoxtld probably look to those countries for the first'sign's of its passing. Such sign is not noticeable" in Japan, but is clearly discernible in the IMited States. The New York'Stock Exchange shows more prononnoed Activity), throughout the whole list than1> sin 1921,■ and there has also been a much, increased demand for stocks and snares in London and the provinces, with aU'ise in quotations.