THE MONEY MARKET

Evening Post, Volume 55, Issue 55, 3 September 1923, Page 6

THE MONEY MARKET

Attention paid by investors to gilt-edged securities continues, and once again in the summary of the financial situation in London, as cabled to-day, business on the Stock Exchange is reported as active. There is a general air of firmness in the market, and even speculative enterprises, such as oil shares, meet with a good demand. The outlook/for,money is regarded as most satisfactory, and yet the capital issues during August were the smallest since records were kept, being £1,216,000, of which but £422,000 were placed on the open market. "The Economist " shows that for the first half of 1923 the total offered for subscription in London was but £186,880,510, as compared with £468,983,126 for the- first half of 1922; but in 1921, the great "slump" period, it was down to as low as £128,977,209, as compared with £1,059,453,426 in 1917—when money was flowing like water everywhere, the floodgates of generations of savings being opened. They rU'P oportcc] jigw, but in gqwparison it is a very feeble trickle

that passes through. The. issues for the first eight months of 1923 are cabled as £220,000,000, as compared with £513,000,000 for the first eight months of last year. What is the significance of this continued flow of money into usually low interest-bearing investments 1 It probably, means that there is not the former demand for products of manufactories, for the services of shipping and railways, for agricultural development, tropical and other: There is undoubtedly a- great demand for money the world over, but many enterprises of the descriptions mentioned are waiting for brighter prospects ; or, at any rate, investors are holding off for moreattractive terms than such 'can offer. In New Zealand alone'there is room for the employment of several millions in developmental work connected solely with the land; but, before going to investors with practicable propositions, it will be necessary to show them that a fair return... consistent with security for the capital inyested will be given. In the meantime, the gilt-edged security continues, and will continue, to staud well in public favour until political and industrial conditions are more stable than at present.