LONDON STOCK EXCHANGE

Nelson Evening Mail, Volume LVI, 24 November 1924, Page 5

LONDON STOCK EXCHANGE

GOOD GENERAL TONE (By Electric Telegraph.—Copyright.) lAiuaraiiau and N.Z. Gabla Assuoiation.) LONDON, Nov. 22. A spell of profit taking followed the l ; ttlc boom on the Stock Exchange with the marked return of the Conservatives to power, and consequently there lias been a slight relapse from the highest prices touched by many speculative shares, but the general tone remains good, though the volume of business is somewhat small and gilt edgeds generally show firmness, a marked feature being a keen demand for scrip in recent issues. A notable, instance is the last Queensland loan, which is now quoted at 90/- premium. Several new issues of corporation and good industrial concerns have been readily subscribed. In an article “Empire Exchange Problems,” the Statist, after describing exhaustively exchange conditions in Australia, South Africa and New ZeaiamPsays: “If it can now be appreciated that the real root of the exchange trouble is the absence in -Australia and South Africa of that degree of freedom off expansion of currency which exists in tl/is country and New Zealand. The old notes board of Australia was carrying o(nt what was essentially the policy of the new board of the Commonwealth Bank and has- initiated a more liberal policy, yet. it has not completely abandoned the old policy. For instance, it does not ’appear to offer unrestricted rediscounting facilities to joint stock banks, also additions to currency, which were recently sanctioned are treated as advances upon which interest is charged and not subjected to the vicissitudes of trade demands but required to be repaid within a limited period. The real remedy for exchange dislocation lies in the adoption of a more liberal currency policy. Australia is averse to this owing to fear of inflation, which must be considered groundless in view of the sound budget and heavy export balance. Australia ought to allow joint stock banks t’o obtain Commonwealth notes freely by discounting trade bills, and if rediscounting of British treasury bills were also permitted readier means would be offered for converting London balances into local currency.”