BRITISH TRADE

Manawatu Standard, Volume XLVIII, Issue 230, 27 August 1928, Page 7

BRITISH TRADE

PROMISING SYMPTOMS. WORLD’S HARVESTS GOOD. INTERESTING BANK RETURN. (United Press Association.—By electric Telegraph.—Copyright.) (Australian Press Assoication.) Received August 27, 5.5 a.m. LONDON, Aug. 26. Tho Economist’s monthly review of tho state of trade shows that in several respects the position has deteriorated, but it is pointed out that though the summer decline is more pronounced than a year ago there are no obvious conditions present that would suggest that trade is definitely on the down grade or that the autumn recovery will Be prejudiced. “On the other hand, if we look further afield there are symptoms which are definitely more promising,” states the Economist. “First and foremost the"harvests throughout the world are proving unusually good. “Tho Australian wool clip is good, so much so that some regard it as the foundation of the coming trade revival in tho Commonwealth.” GOOD TONE ON STOCK EXCHANGE.

Although tho holiday season is still in full swing tho stock markets are generally good and the volume of business is distinctly better than is usually the case in August, especially in some of the more speculative departments. Firmness is apparent in the gilt edgeds. The principal event in this market has been the issue of thirty-five million Treasury 5 per cent, bonds to repay the bonds maturing on September 1. The minimum price was fixed at 101 and forty-two millions were subscribed at an average price of 7Jd above the minimum.

Some financial writers express disappointment at tho result, but the general opinion is that it is as good as could be expected. STRENGTH OF COLONIAL STOCK.

A good feature of gift edgeds is the tho strength of Colonials, especially Australian, which have apparently profited by the success of the Commonwealth Conversion Loan, which has been the subject of much favourable Press comment hero. The scrip of the last Commonwealth loan issued in London is in good demand at about a three-sixteenths premium, and an earlier issue of similar stock is quoted at about 99.

New Zealand stocks are also strong. The last issue at 4£, which was floated in May at 94J. is now quoted at 971. This week’s bank return is interesting, as it shows a great increase in the reserve and a decline in the total deposits and liabilities, the result being that tho proportion of reserves to liabilities exceeds 52 per cent. This is the highest proportion since July 22, 1914.