THE MONEY MARKET

Evening Post, Volume 91, Issue 91, 15 October 1923, Page 7

THE MONEY MARKET

BRITISH TRADE BRIGHTENING.

(UNItBD PRESS ASSOCIATION—COPYMSHT.) (AUSTRALIAN - KEW ZHALAND CABLE ASSOCIATION.) LONDON, 13th October. Although the long-expected and eager[ly desired improvement in trade in. | Great Britain has not yet materialised, some of those best acquainted with I trade conditions claim to see signs of a slight improvement in Borne directions. One weil-known financial writer says that although it is not a matter on which bankers are inclined to be optimistic, he finds a certain amount of agreement in financial circles that in more than one industry things are looking just a little brighter,. It is not improbable that to some extent theae 6igns of improvement may be directly connected with special orders relating to the work of rebuilding Japanese cities, but any special stimulus arising therefrom will be set off by the inevitable diminution for the time being of ordinary trading operation* with Japan. COMMODITY PRICES., There is, however, a feeling that the prices of commodities may have nearly touched bottom, and this gives buyers greater cbiifidenoe. The came signs of trade expansion are also revealed to some extent in the Slight growth of bank-, ing depbsits, which shqjv quite a fair advance, compared with March.

Another financial expert points out that the relevant statistics show that September, 1922, marked the lowest point in the post-Armistice trade curve. There has riot been a progressive recovery since then. Oh the contrary, there was a well-marked reaction in the late Spring, dub mainly to the depression in an important group of Continental currencies, Which 'restricted their buying powers, while it gave them the addition- I al advantages in foreign competition with' our exports, but over the 12 months since September, 1922, regarded as a whole, there has been a very evident improvement in trade. GILT EDGED SECURITIES. Other financial writers are hardly as optimistic in their outlook, and they regard as striking evidence of the continued trade stagnation the fact that on the Stock Exchange gilt-edged securities have been comparatively firm at a time when all speculative markets have been inclined to drift.

The strength of gilt-edged investments and the steadiness of the investment demand generally, have indeed been the outstanding point* of the Stock Exchange during the past fortnight. There could not be a better illustration of this than the brilliant success of the Commonwealth loan, following so closely on Victoria's large issue. The feature of both loans -was the absence of "tagging" by speculators, and profit-takers, which .was shown by the fact that both loans command substantial premiums, the Commonwealth three-eighths, and the Victorian seven-eighths. Following these there comes on the market a Nigerian loan of £5,70*000 at 4 per cent,, issued at 98, redeemable in 1963, which promises to be equally sue-