N.Z. STOCK EXCHANGE

Evening Star, Issue 19999, 17 October 1928, Page 9

N.Z. STOCK EXCHANGE

mm MEETING OF ASSBSIATiON The annual meeting of the New Zealand Stock Exchange Association was held to-day in the Slock Exchange callroom when Mr Harman Beeves presided. Tho following delegates were present:—Messrs G. G. Creagh andW. 13. Colbcck (Auckland), B, Wynn Kirby (Wellington), Frank Graham and Warren Fisher (Christchurch), W. A. Ott and J. B. Be id (Invercargill), Harman Reeves, E. R. Smith, and W. J. Wateou (Dunedin), PRESIDENT’S ADDRESS. In welcoming tho delegates, Mr Harman Reeves (tho retiring president) said that ho was pleased to seo all the Stock Exchanges represented at tho conference, and, from conversations ho had had with the delegates, ho was also glad to learn that, since they met last year, business generally had been good. Delegates would remember that at the time of their conference in August last year the country was gradually recovering from a financial depression, caused mostly through excessive importations. The position was now reversed, exports exceeding imports by many millions. That had caused considerable improvement in their business and a cheapening of money throughout the dominion. Strangely enough, whilst business on the Stock Exchanges had been good, trade generally throughout New Zealand had been dull. That was accounted for by the fact that the credits from the high price of wool, etc., had gone into the hands of investors, and of the banks, stock ami station and loan companies wbn had__ been, and wei'G. taking advantage of those credits to reduce their clients’ overdrafts, and place themselves in a secure finan- ■ cial position. Should New Zealand s exports this year, particularly wool, obtain satisfactory prices, it would, he thought, be found that a large amount of money would go into trade throughout the dominion to the advantage of both wholesalers and retailors. Mr Reeves thanked members of the various exchanges for their ready acceptancc of his decisions during the year. On several occasions he had received letters or telegrams from Stock Exchanges or members asking for an opinion on various matters ._ In some instances the opinion or ruling had to he given hurriedlv and by telegram, and it was for their loyalty in accepting these decisions th&t he tvas thank* nig them. . Before concluding, Mr Reeves said i ho would just like to join issue with 1 the Press of tho dominion, winch had of late been directing attention to the , practice of share selling by individuals i among unsuspecting people, _ who, in many cases, had beep victimised, investors would bo well advised when np- ' preached by those share salesmen to I communicate with a member of a stock exchange before signing any applications for shares. That warning was necessary, as several cases had come under the notice of members where people had taken up shares without ranking proper investigation as to tlie prospect of success, only to find their capital had been lost. It did not follow that a prospectus submitted by someone other than a member of a stock exchange was necessarily doubtful, but the chances were that there was a u ilv in the ointment ” somewhere, not the"least of which was that the cost of selling shares by canvassers was greater than tho community could possibly pay. It was known of a forestry company selling bonds where the cost of raising the capital was stated to amount to 14 per cent. It would bo interesting to know how many companies could ultimately prosper which had to start off by paying 'such a high initial cost for its capital. GENERAL. The business of the conference was then proceeded with. Mr G. C. Creagh being elected president of the association for the coming year, j On.the motion of Mr Creagh a hearty vote of thanks for bis services as president of the association for the past year was unanimously accorded Mr i ITavmau Beeves.