STOCKS AND TRADE

Hawera Star, Volume XLVI, 27 September 1926, Page 5

STOCKS AND TRADE

BUSINESS AT HOME. ; '• ! MONEY MARKET TIGHT \ GERMANY'S ECONOMIC RECOVERY'. BY CABLE— PRESS ASSOCIATION —COPYRIGHT. Received 9.50 a.m. to-day. » LONDON, Sept. 25. Business on the Stock exchange has been disappointing, tne continuance ot tne coal striae and the growing stringency or the monetary position Having combined to produce a general reaction. V ague rumours of a new conversion scheme have also had. a weakening effect on grit-edged securities, and'conditions have not been improved by the unexpected appearance of New South \Vales as a. borrower, 'the prospectus has been coldly received, and such an influential newspaper •as The Statist says: “The present is not an auspicious time for new issues, and though there is reason to expect an improvement in the monetary situation towards, the end ot the year, the immediate outlook does not justify heavy borrowing.” The earliest effect of the New South AY ales issue has been the marking down of several recent colonial loans, notably the last Commonwealth 5 per cent, scrip, which is now quoted at li per cent, discount. Some comment is made on the fact that the New South Wales loan was issued at £97, whereas last March a loan exactly similar was floated at £9B. But it must be borne in mind that conditions in iMnrch were more favourable than they now are, as is shown by the price of the 3 V conversion loan, w'hieh is regarded as an index to gilt-edged values. fit was then quoted at £75 15s, and now at £74. PRICE OF SILVER. FALLS. Yesterday’s sharp fall in the price of silver, to 27£d, the lowest since March, 1916 was due to heavy sales. Commenting thereon, an authority in the bullion market points out that the fall has been more or less continuous since March, 1920, when the price touched 89id (the lowest- beirig 383 d and the average for the year 61.59 d). This was brought about by the knowledge that the world’s silver supplies have been growing; and the demand is decreasing. Now there is an added factor that of the placing of India on a definite gold' standard for currency. This promises to deprive the world s market of ah important consumer, it indeed it does not result- in heavy sales on India’s account. RELAPSE IN TIN PRICES. Discussing the relapse in tin prices, one of the (leading firms of metal brokers says : /‘The operations on the London Metal Exchange do not affect the position as regards supply and demand. Where tin is wanted for consumption there is still considerable scarcity, and high premiums are being paid for Straits and other descriptions of retired metal. The Americans have taken advantage of the setback to buy fairly freely, and there has been a quiet but steady demand from consumers here and on the Continent.” Another broker writes that as consumers, especially in America, are supposed to be not too well covered, some recovery may be reasonably anticipated. WOOL SITUATION. Regarding the -wool situation, the Economist’s Bradford, correspondent says: “Both in the primary markets and in London values are so much above Bradford naritv that many firms have been obliged to become passive spectators, - for they cannot compete with Continental concerns, either in the raw wool markets or in the sale of yarns and cloth, Yorkshire owners are* unable to foliow the market at the moment. Recent advances in tops and yarns, made absolutely essential ’ by the rise in wool, have curtailed demand, and in all qualities the turnover has been disappointing. To-day’s quotations are very firm, but in nearly every case where business has been offered it was at a price well below replacement cost. This applies to tops, yarns, and piece goods.” CONDITIONS IN GERMANY. Germany’s remarkable economic recovery is described in a report prepared by the commercial secretary-; of the British Embassy at Berlin, who says: “There is hardly another country of similar industrial importance which could overcome, with such comparative ease, the complete destruction of its currency, or which could have passed with equal rapidity through subsequent periods of necessary, but extremely trying, reorganisation. With regard to Germany’s obligations under the ‘experts’ plan,’- there is no serious grounds for apprenhension. It seems probable that the full amount can be raised when the time comes. The burden cannot be regarded as an excessive ■ one, nor, after making allowances for • the respective wealth, is it heavier than M that of other European countries.” ' Discussing the report, the Financial Times says: “Germany undoubtedly owes much to outside assistance. One of the chief obstacles to an industrial revival was the lack of working capital, practically all of which was destroyed by inflation. Thanks to the influx of investment funds, mainly from . the United States, and in a lesser degree from the United Kingdom, Holland, and other countries, this need has been sufficiently supplied during the last two years'. It is a sign of returning confidence that whereas lenders at first demanded 10 or II per cent., they were subsequently prepared to lend ab 7 per cent.”