TRADE REVIEW.

Evening Post, Volume CIX, Issue 120, 25 May 1925, Page 5

TRADE REVIEW.

LONDON MONEY MARKET

A PERIOD OF DULLNESS.

(UNITED PRESS ASSOCIATION—COPIRIGHT.)

(AUSrRAHAN-NEW ZEALAND CABLE ASSOCIATION.) LONDON, 23rd May.

After a period of dullness, at times almost amounting to depression, the Stock Exchange during the last day or two has shown a, more confident tone, thanks mainly to easier monetary conditions and the rumour of a big inflow of bullion into the Bank of England. This brought about a general advance, and gilt-edged securities and Home rails shared in the improvement. Speculative stocks still, however, are very dull, and the little rubber shares boom of a, fortnight ago has died down, following on the fluctuations of raw material on profit-taking sales. A feature of the Stock Exchange has been the small public subscription for several recent large issues, with the result that the underwriters are still holding large stocks. They were left with about ten millions of the New Zealand and London County Council loans, which are both quoted at heavy discounts, but despite this there was no difficulty in underwriting the New South Wales loan of six and a half millions. This is satisfactory, as showing the underwriters' confidence in the situation and the outlook.

The South African banks announce that rates for cabling money to the Union have been brought down to par, while bills payable on demand can be bought at one-eighth per cent, discount. This is the immediate result of South Africa's return to gold currency, and of the fact that Rand producers have been sending a large portion of their output to the Pretoria Mint for conversion into sovereigns. It is interesting to recall that in 1920 the exchange rate for remitting funds to South Africa was 7 per cent, premium.

"NOT MUCH ENTHUSIASM."

The "Economist" monthy trade review says: "Although the present trade conditions do not call for so much pessimism as some people have made out, they certainly.are not calculated to raise much enthusiasm. Seasonal changes at this time of the year affect some industries favourably and some unfavourably, but the situation as a whole has shown little change during the last month. While there is no evidence that ground is being lost, industry, shows little ability to make definite headway. Mr. Churchill's Budget so far has affected industry to but a slight extent, apart from the announcement of the return to the gold standard. The return to the gold standard was anticipated in the city, but the preparations in all cases to deal with the new conditions have not proved thoroughly complete. A transitory period of doubt and hesitation has occurred, and is affecting city business to a marked extent, but this should speedily give place to one of more normal conditions. The ultimate effect on British industry of the Treasurer's step will doubtless be considerable, and we believe beneficial but it will naturally require some time for working out."