EXCHANGE RATE

Nelson Evening Mail, Volume LXVI, 19 December 1935, Page 12

EXCHANGE RATE

LOWERING PROBLEM A DUNEDIN OPINION 1 . The annual meeting of the Dunedin Stock Exchange was held to-/ay, the chairmau( Mr Harman Reeves) presiding , over a large attendance of members. Tho chairman said the exchange question was one that would require very careful consideration, It was an easy matter to raise the rate, but it was quite a different matter to effect a reduction. Stabilisation of the world’s currencies seemed no nearer than it was 12 months ago. Some important nations, stayed on the gold standard, but some were hovering on the brink pf inflation, so that it was too much to expect that all the important countries could agree upon stabilisation at the same time, and. it must be a very long-time before this could be brought about. During the year, money had remained plentiful and cheap in the local market, with the result that sound investment shares, such as banks, insurance, finance, and many industrial shares, were in good demand and reached high levels. The most important company flotation during the year was that of the issue by the Mortgage r ■ a:_.. _.c \t r t i i rcnn non

Corporation of. New Zealand ol £500,000 cumulative 4J,- per cent, shares at par to the public. The issue was largely oversubscribed, and the shares went to a substantial premium, but had since fallen in value. The issue by the corporation of £500,000 of bonds bearing interest at 3§ per cent, was not, however, received with such favour, although tho chairman of the corporation stated that the issue had also been largely oversubscribed. Cheap money in the Dominion had helped to stimulate industry and primary production, and it was to bo hoped that the' new Government would use its influence in keeping interest rates down, as had been done by the Baldwin Government in England, and the late Goverment of this country. The outlook for the coming year was good, said Mr Reeves. Fairly high prices for all the country’s products were being obtained, so that there should bo a large sum of money seeking investment during the course of the year. Much of this would, as usual, find its way to members of the Stock Exchange for investment, so that it behoved them to see that their clients made purchases of only the best and soundest of securities. It was to be regretted that owing to the lack of sound security in this country, a large amount of money, had been invested during the year in the shares of Australian companies, the purchase of which had in most cases been profitable, and he thought he could safely say that there were so many opportunities for safe investment in Australia that investors would continue to make purchases of shares of selected companies in that country. Owing to the high rates of exchange, the amount invested in British securities in recent vears had been practically nil.; "* The following office-bearers were elected :—Chairman, Mr Harman Reeves; executive committee, Messrs Ei R. Smith, H. K. Boppelwell; J. H. Walker, - W. H. McLeod, and C. Penman; trustees, Messrs Reeves. Smith, and W. J. Watson; auditor, Mr J. W. Smeaton,