STOCKS AND LOANS.

Hawera Star, Volume XLVI, 11 October 1926, Page 5

STOCKS AND LOANS.

MARKET IN ENGLAND. STRINGENT CONDITIONS; BY CABLE— PRESS ASSOCIATION—OOPYRIGHT. „ LONDON, Oct. 9. The Stock Exchange is in a somewhat depressed mood owing to t.li© stringent monetary conditions, with the possibility of money becoming -still dearer and the failure to arrive at a settlement of the coal dispute. Consequently there has been generally an easier tendency, especially in speculative stocks, while some railways have been depressed by rumours of curtailment- of train services owing to the coal shortage. . . Despite this unfavourable condition, however, there have been several large new issues, notably the £6,000,000 City of Tokio 5£ per cent at £B3 10s, which was over-subscribed as soon as the lists opened. Some people are contrasting this success of a foreign issue with the poor reception accorded the New South Wales loan, but inasmuch as the latter only yielded the; investor £o 3s 6d per cent, whereas Tokio gave £6 lie 3d and was guaranteed by the Japanese Government, the Japanese success was not surprising. Although the Australian finance pamphlet issued by Messrs Cooke and Davenport received l considerable publicitv in the daily oress, it is significant that the financial newspapers, both- dailies and weeklies, ignore it completely, while the Stock Exchange treats it with that indifference it usually displays towards effusions of this sort. Discussing the subject with a well-known stock broker, who operates largely in the colonial market, he recalled to the writer that Australia had been subject to similar acidulous criticisms as long as lie could remember. He instanced the dismjil jeremaids of the Investors’ Review 35 years ago, which at that time predicted the insolvency of the various Australian States because of their excessive borrowing and reckless expenditure of loan money. None of these; dire forebodings were realised, and throughout this lengthy period holder of Australain Government stock had failed to receive his full interest with clockwork punctuality every half-year and his capital in* full at the due redemption time if required. Regarding •the demand that _ loan prospectuses should contain details of a- State’s financial position, lie pointed out that in his long: experience he had never been asked hv an investor for such information, and the demand for it by certain financial writers had onlv been made in the last year or so. If any stock broker required this information he had only to turn to the Stock Exchange Official Intelligence, which contained the completest and latest details regarding the income and expenditure of the Commonwealth and of every State.

Business in Australian dried fruits has been very disappointing. Unfortunately the grub trouble still exists. One of the largest firms of multiple slion eake-makei’s refuses to allow Australian sultanas in its bakeries. A representative- of the firm suggests that the fruit should be fumigated in Australia- before shipment, thus killing both grubs and eggs. If they could be assured that the sultanas were immune from the grub they would gladly buv Australian in preference to foreign’. Unless something xinexpected happens it is unlikely there will lie any extensive movement in the world prices for wheat during the current season. It appears likely that supplies will show a comfortable surplus over ' the demand, if the growing crops in Argentina and Australia realise expectations.