PRODUCE AND MARKET REPORTS FROM DAY TO DAY

Evening Post, Volume CXIII, Issue 130, 6 June 1927, Page 11

PRODUCE AND MARKET REPORTS FROM DAY TO DAY

PRICE OF MONEY

POSITION IN LONDON

GERMAN BANKS AND "BLACK

FRIDAY"

(Lmted Press Association.—Copyright.) (Received 6th June, 9 a.m.) ' „ LONDON, 4tli June. 'Every day in. every.ivay the gilt-edged market becomes better and better." That is how a writer in one of the financial newspapers describes the security market ! position. This is certainly the case with the Dominions' stocks, the recent success o£ the New South Wales issue having had an excellent effect, and the New South Wales and New Zealand last loans are both quoted at a half percent, premium. „,l he B°od. l)osit'on is largely attributw3 Oai ler moMtar >' conditions, fol•fiftv ? n- P a>". me °t this week of about ntty millions in. interest on these 5 per cent, war loan; and though the withdrawal of half a million m gold from the Bank ol Lugland yesterday had a somewhat dismarkets closed • Prospects, therefore, seem favourable for new Australian loans for which it is understood preparations are now being made The Commonwealth Government and the Sstate of Queensland and Victoria are !"v, c w, d aS ,Hke. ly t0 be borrowers, although the order m which they will come into the markets apparently is .not yet The satisfactory absorption of recent issues may be regarded as an indication that -Australia is once again, in the good and- that Dominion stocks are becoming increasingly popular, especially those of the long-dated desenpton, giving a yield ■or about 5 per cent. The position of affairs in '"Germany seems to. be steadily improving, notwithstanding the collapses which recently occurred on the Berlin and other bourses According to the latest report of the Trade Research Institute, quoted by the -tmancial JSews" Berlin correspondent, the slow, gradual progress which the institute reported for the three months, JNovember, December, and January, has during the subsequent quarter, continued with accelerated tempo. The number fully unemployed, which in January was 1,800 - 000, had fallen to 870,000 at the end of April, and 750,000 at the end of May. The report continues: "Productjon and turnover continuously increased during the last quarter. Especially prosperous industries are the textile, chemical, electrical: technical,- automobile, shipbuilding and machinery trade. The whole, movement is due to an increased demand in'the internal market." The report adds: "The extraordinary affair of Black Friday, on the Bourse "was entirely artificial and unnecessary. The situation was produced by the big banks, which have been largely responsible for inflation of prices of stocks by the encouragement which they have given to their customers to buy liberally, placing necessary credits at their disposal." ["Black Friday," referred to in the above dispatch, was Friday, 13th May last, when the Berlin Stock Exchange experienced one of its most disastrous days. An enormous slump in share value resulted in the loss of many huge private fortunes, while banks and industries suffered severely. Towards the close of the Bourse the big banks intervened, causing a slight rally, but this did not compensate for the day's deficit. Glanzstoff (artificial silk) dropped 150 and Schultheiss Brewery 74. points. Thousands of foreigners lost heavily. The Dyestuffs Trust benefited, because it foresaw the slump, sold short, and rebroueht its own shares cheaply. . The slump was attributed to, among other causes, the Bank of England maintaining its rate of 4% per cent., lowered on 21st April, from 5 per cent.]