TRADE AND FINANCE

Evening Star, Issue 18811, 9 December 1924, Page 5

TRADE AND FINANCE

LONDON'S REPORT. STABILITY THE KEYNOTE. Press Association —By Telegraph—Copyright. LONDON, December 7. “ Steady ” is the best description that can bo applied to the Stock Exchange, which has weathered the excitement of the Egyptian tension without anything more 1 serious happening than a sharp drop in I Egyptian bonds. Generally the markets ' are firm, and though the settlement concluded last Thursday was noticeably of smaller dimensions than the two previous ones, there was no sign of weakness apparent. A feature has been tho demand for new issues. The Commonwealth loan was a notable success, but undoubtedly a good proportion of tho applications came from scrip selling by “ stags ” at a slight discount. Another issue which is likely to attract enormous subscription is the Greek Government’s refugee loan, which has been floated under the auspices of the Financial Commission of the League of Nations. Tho proceeds will be devoted to tho settlement of Greek refugees upon the land. The total amount of the loan is £12,000,000, of which Great Britain’s share is £7,500,000 in 7 per cents. The price of issue is 88, allowing for redemption at par in twenty years. _ The loan yields over 8] per cent., so it is not surprising that there has not only boon a great rush to secure a shave of its underwriting, but that bug queues waited outside tho issuing bouses for the prospectuses. THE RISE IN STERLING. Sterling has again provided the sensation of the foreign exchange market, the price having at one time reached_ 4.69]id01. There have bom feverish fluctuations, and, according to a financial expert, this movement is not based on general economic factors, as both the movements of prices and the trade balance in the two countries would suggest a fall rather than a rise. Probably the immediate cause is the difference in the market rates at the moment between the two countries, which has resulted in the movement of a large amount of short money from New York to Loudon. Therefore, the position is far from stable. GOLD STANDARD. Following tins rise in sterling and the dollar exchange, a discussion has arisen in the newspapers regarding an early return to the gold standard. The ‘ Economist ’ writes: ‘‘Undoubtedly hopes are growing on both sides of the Atlantic that tho recent movement foreshadows an early return to parity and Great Britain’s resumption of tho gold standard. If these hopes can be realised, a contribution to world reconstruction will be made second only in importance to the introduction of tho Dawes plan, especially if Great Britain’s return to the gold standard should soon be followed by similar action by the great dominions and the other countries, among whom Holland, Switzerland, and Spain are the most likely to be first." ANGLO-GERMAN TREATY. The provisions of the Anglo-German commercial treaty are arousing much interest in the city, particularly in banking circles, in which considerable difference of opinion exists regarding the advisability of permitting the,German banks to reopen branches in London. One side suggests that London, being the monetary centre of the world, is an international clearing-house to which foreign countries must be admitted; and Germany, which was formerly one of Britain’s most important customers, cannot be excluded now that peaceful conditions are returning. On the other hand, the opinion is expressed that, ns Germany is Britain’s competitor, it is against British interests to allow her to come into this country. There is, moreover, little likelihood of the British banks extending to Germany, so reciprocity is of no value to Britain. METALS. The slight set-back in metals is largely attributable to the advance of tho sterling exchange; but the positions of copper, tin, lead, and spelter are all intrinsically strong. Tin, especially, is meeting with n steady demand from the works in America, South Wales, and on the Continent: and, as ono of the brokers points out, it is an interesting fact that, with heavy shipments from the Straits Settlement to all_ parts and Itnavy arrivals in London, tin is no soonor discharged from the steamers than it is cleared" either for English consumption or by transhipment. THE WINE TRADE. In a review of the wine industry Messrs W. A. Gilbey, Ltd., state: "The annua! world production, according to tho latest returns, is estimated to total 4,000,000,000 gallons, of which France alone produces one-third. France’s annual home consumption of wine, apart from tho quantity distilled into brandy, amounts to 1,000,000,000ga1, or actually 159 bottles per head of the whole population, compared with the United Kingdom’s almost negligible consumption of two bottles per head. The latter also includes wines from all European countries, as well as Australia and other dominions.” —A. and N.Z. Gable.