MONEY MARKET.

Manawatu Standard, Volume XLIII, Issue 1717, 7 January 1920, Page 2

MONEY MARKET.

STOCK ACTIVITY.

AMERICAN EXCHANGE PROBLEM

Whilst Mr H. Beauchamp was in London, money for day to day and weekly loans was cheap and abundant, rates ruling from 2 per cent, to 4 per cent, per annum. The Bank of England rate, which, for some time, had remained steady at 5 per cent., was raised early in November to 6 per cent., and Treasury bills which had previously been issued to yield investors 3 per cent, and 4 per cent, for three and six months’ currencies respectively, were, with the alteration in the bank rate, sold at rates to return buyers 5A per cent, for cither three or six months’ currencies. Mr Beauchamp, when seen by a Post reporter on this matter, remarked that, whilst these rates woro : ruling in London, it was interesting to note that loans, at shore dates in New York, were being made at 6 per cent, and 7 per cent per annum; but on 13th November, owing to an enormous amount of money being required to complete heavy stock exchange purchases. 30 per coni, per annum was paid for short loans in New York —tne highest rate ever touched since tlie panic in 1907. y “Personally, I think we are in for an era of dear money,” he a.ddod. “ especially in Europe, and the United States and Canada, and it will be interesting to see how long it will be before there will be a reflex action in the Dominions, ''which, owing to the very large surplus of exports over imports during the past six or seven years, has continued in such a delightful and enviable position of financial case. .Money, like water, has a tendency to find its own level. For some of our products, wonderfully high piicos have recently been realised. For example, as much as 350 d per lb for rabhitskins, and 51§d per lb for slipo wool, whilst for a lino of supcr-Mcrino fierce wool grown in .Victoria, the record price of 124 d per lb was paid in public auction. This was bought for re-export to Switzerland. The market prospects, for all descriptions of our primary products, 4 in Groat Britain, the Continent of Europe, and the United States of America, are, in my opinion, most rosy. CASE FOR THE WOOL GROWER. “ Speaking of wool reminds me of the justifiable dissatisfaction at the unconscionable delay that lias occurred, on the part of the Imperial Government, in accounting to growers of fleece wool, in Australia, and New Zealand, for surplus profits on wool sold in open market, and not required for Army purposes. As chairman of the. Bank of New Zealand, I took up this question with our High Commissioner, and he assured me that he was leaving no stone unturned to bring about a settlement. The excuse of the British authorities is that the adjustment is most difficult and laborious to make. I fail to see why it should he, it is all a matter of accountancy. “Up to the date of my departure for England, and' for some time prior thereto,” Mr Beauchamp continued, “there was considerable activity on the London StockExchange, stocks in shipping, rubber and oil companies commanding the most attention. The rapid advance in P. and 0. deferred stock was most sensational, sales having been effected at over £670 towards the middle of November. As might he expected, after the embargo that was placed on the flotation of now companies during the war, the market is now being flooded with new issues, and these appear to he readily absorbed by an over confiding public, assisted by astute underwriters.”