COMMERCIAL

Hokitika Guardian, 12 November 1936, Page 7

COMMERCIAL

BRITISH FINANCIAL REVIEW. 1 United Press Association—By Electu* Telegraph Copyright ). LONDON, November .8 Cheerful conditions in the stock markets marked the dose of one of the busiest weeks on record, with speculative activity continually threatening to boil over in particular markets and keeping the whole Stock Exchange in a state of suppressed excitement.

The- week began with frenzied deal-

ings in rubbers, followed by a, flare-up in transatlantic shares, culminating in great activity in tins, coppers and oils.

The cheques changing hands on settlement day totalled many millions. There has been something for almost everybody, and many who never bought shares in their lives poured money into the markets. The shares of many companies have doubled in value in the current year.

Brokers say that it is ’ difficult for anyone to lose money these days, but the growing problem of bucket shops reveals that there are plenty of lambs waiting to be fleeced. Conservative city business men view the growing speculation with some apprehension, but agree that a solid foundation exists for some increase in values. The boomlike conditions are largely based on the rise in commodities.

Conditions on the Metal Exchange have been unparalleled for at - least seven or eight years. Copper, despite the quota increase has risen to more than £44 a ton, tin has jumped £22 on the agreement with Siam, lead is at its highest since 1930, and even zinc, the Cinderella of metals, has improved more than 10s a ton in a® week. A

• reaction is possible, indeed desirable, | especially m copper, where the market is in a vulnerable position. Consumers i cannot continue to cover requirements lor montns ahead imleiihitely. Another favourable feature is the continuance of the expansionist policy. The banks during October lent ' £10,500,0 v), bringing the aggregate increase in loans since January to £6tS,OJJ,OUO. Advances total £oo<,Boe,000 now the highest level since 1932. Deposits increased by £23,800,000 in October to a new record of £2,280,400,000. Cash resources showed a reduction owing to the banks’ decision to let the cash ratio sink below the traditional danger low level of 10 per cent, j’for the first time in history. \ The activity in Britain spread to the Continent, especially in Paris where gold hoarders are turning to securities. Butter stocks, are roughly 8200 tons more than last year, anti shipments afloat from the Dominions on October 2d were CUO tons higher than last year, indicating at best a steady market Against this must be set the low gradings from Australia due to dry weather. Consequently, the ' market is tending higher. Bulk operators have definitely missed the market, and holders of stock s are disinclined to realise. r

The outlook for the wool sales on November 17 is excellent. 'Traders expect a good demand at higher prices. It is understood that the offerings will include 50,000 bales of Australian and 45,000 of New Zealand wool. Many topmakers are hewildered by the rapidity of the upward movement of values in the last few weeks.