Manawatu Daily Times British Capital Issues

Manawatu Times, Volume LV, Issue 6788, 20 February 1932, Page 4

Manawatu Daily Times British Capital Issues

“The amount of new money, so far as can be traced, which was raised in the capital market of the United Kingdom in 1931, was the lowest for any year since the war,’’ the Midland Bank Monthly Review states. “This fact, baldly stated, itself gives some indication of the general economic and financial conditions ruling throughout the period. But the depth of depression, combined with the low level of confidence among investors, can be gauged more accurately by a few figures. The 1931 total of £89,000,000 is only about one-quarter of the aggregate for 1928, the year of heaviest issues if the wholly exceptional 1920 be excluded.’’ It is only 34 per cent, of the annual average for the 12 years from 1919 to 1930. “The extremity of the quiescence in the capital market was reached in the second half of the year, though each month recorded unfailingly a lower figure than its predecessor of 1930. The first six months yielded a total of £71,000,000, the second half only £18,000,000.” Prophecy regarding 1932 is impossible, states the writer. It depends on many uncertainties. “Among them the most vital is the question whether general confidence will improve or remain in the low state of the past year. And the answer to this question, again, will be provided by developments in the international sphere—negotiations regarding war debts, conditions in Germany and Central Europe, the course of gold prices and other trends—as well as by the passage of events at Home—the budgetary situation, taxation, the balance of international payments, and so on.”

Australian Exchange

The assumption that Australian exchange rates are the result of a “free market” is refuted by a statement by Mr. E. C. Riddle, governor of the Commonwealth Bank, in a contribution to a financial supplement published by the Sydney Morning Herald. He says definitely that the rate has been “pegged” by the Commonwealth Bank to prevent its falling. Mr. Riddle states that when the suspension of gold payments in Britain caused a general increase in commodity prices, sterling returns for Australian produce rose, and consequently the total of Australian-owned sterling in London commenced to increase correspondingly. Also people began to transfer funds to Australia, “The result was that the banks were being asked to buy London funds at 30 per cent, premium largely in excess of the amount they could sell,” says Mr. Riddle. “The possibility of loss in this way alarmed the banks, some of whom threatened to cease buying altogether unless the Commonwealth Bank came to the rescue by buying their surpluses, and thus taking the whole responsibility. The position became so critical and the danger of collapse so great that the Commonwealth Bank, on December 2, issued a statement that it would buy London exchange, at rates to be fixed by itself, without restriction so far as the public were concerned, and subject to certain conditions, would also buy from the banks any surpluses accumulated by them.” In conclusion, Mr. Riddle says:—“The bank has been accused of bringing down the exchange rate, whereas the ■contrary is the fact. In fixing a rate at which it was prepared to buy openly, the Commonwealth Bank fixed a rate beyond which the exchange could not, for the time, fall, and in this way was instrumental in preventing the collapse which must otherwise have occurred.”

A team of Australian skiers, ikeaded by Mr Tom Mitchell, a silver medallist, who represented Australia in Murren, in Switzerland, two years ago, will come to New Zealand for the winter sports in July. Mr Mitchell stated at the conclusion of hie last visit to Mount Cook that the Tasman glacier compared more than favourably with Switzerland, and at some time in the future big ski-ing meetings would be held at Mount Cook. The visit of the Australians will do much to improve the standard of the sport in the Dominion.

Over a thousand pupils—ll 23 to be exact—have enrolled for the day classes at the Wellington Technical College this year. This is 119 more than were attending the school last year at this time, and accommodation will be severely taxed. The director, Mr E. G. Eidling, stated at a meeting of the board of governors that the congestion at assembly was serious and the laboratories had to be used as classrooms. This was regrettable as the importance of laboratory work in the curriculum was so great that the. usefulness of the school must be impaired unless conditions altered.

The High School Board of Governors decided last evening to forward to the Hon. J. Parr a letter expressing warm thanks for the part he took in tho prize-giving ceremony and tho address he delivered to tho students. During tho long spell of dry weather the hairy caterpillar has caused much damage to green vegetables in local gardens. More than a few whoso gardens have been invaded would be grateful for information concerning the best means of destroying tho pest. Spraying seems of no avail, unless of a highly poisonous quality. Two richly carved Maori feather boxes, known as wakahuia, have been donated to tho Auckland War Memorial Museum by Mr R. Ogle, of Rangiahua, Xorth Auckland. The specimens were found by Mr Ogle in a cave at Rangiahua about 40 years ago. Although there are older specimens of Wakahuia in the museum, special value is attached by tho museum authorities to the latest acquisition on account of their perfect state of preservation. The majority of the other Maori feather boxes in the museum were found in damp caves and consequently their appearance had deteriorated. Another beautiful wakahuia, obtained in Auckland in 1860, has been presented by Mr C. D, Husband. A iiercc challenge by a bull as to the freedom of a country road in tho dark was the sensational experience of a Dunedin resident, who was driving a motor-car homeivard about 10 p.m. Tho clash occurred between Evansdale and Vaitati. The motorist, who had throe friends with him in the car, suddenly saw a strange object ahead. It had, he thought, the figure of a monster dog. Deeming it wise to reconnoitre, he brought the car to a standstill, and it was immediately rushed by a bull, the impact leaving deep marks on tho radiator and bonnet. For a moment the driver thought it would be a simple matter to give the beast the slip, but every time he started it made another rush and the position resolved itself into manoeuvring, with repeated forward and backward movements of the car and check actions by the bull, until, catching a chance, the motorist used the accelerator to escape from a predicament which would have been ridiculous had it not involved danger.