BRITISH TRADE REVIEW.

New Zealand Herald, Volume LXI, Issue 18887, 9 December 1924, Page 7

BRITISH TRADE REVIEW.

STOCKS AND LOAN ISSUES.

DEMAND WELL SUSTAINED. EXCHANGE ON NEW YORK. A. and N.Z. LONDON. Dec. 7. "Quietly steady." is the best description applicable to tho London Stock Exchange. It has weathered tho excitement which was caused by the Egyptian tension without anything more serious happening than a sharp drop in Egyptian bonds.

Generally the markets are firm, and though the settlement concluded on Thursday was noticeably of smaller dimensions than the two previous c.ies, no sign of weakness was apparent.

The feature of the past fortnight has been tho demand for new loan issues. The Commonwealth loan was a notable success, but undoubtedly a good proportion of the applications camo from "stags" for scrip selling at a slight discount.

Another issue which is likely to attract enormous subscription is the Greek Government's "Refugee" loan. This has been floated under the auspices of the Financial Commission of the Leaguo of Nations. The proceeds will bo devoted to the settlement of Greek refugees upon the land. The amount of the loan is £12,300,000, of which Britain's share is £7,500,000 in 7 per cent, debentures. The issue price is £85. , Allowing for redemption at par in 20 years, the loan will yield over 8i per cent. It is not surprising, therefore, not only that there is a great rush to secure a share of its underwriting, but that long queues waited outside the issuing houses for prospectuses.

Exchange and Gold Standard. The rate for tho pound sterling has again provided the sensation of the foreign exchange market, the price having at one time reached 4 dollars 69? cents. There havs been feverish fluctuations, and to-day's closing price was 4 dollars 68J, cents. According to financial experts, this movement is not based on general economic factors, as both the movements of prices and trade balance in the two countries would suggest a fall rather than a rise. Probably the immediate cause is the difference in the market rates at, the moment between the two countries, which has resulted in the movement of a large amount of short money from New York to London. Then/fore the position is far from stable.

As a sequel to this riso in the exchange rate for the pound sterling, a discussion has arisen in the newspapers regarding an early return to the gold standard. The Economist says: "Undoubtedly hopes aro growing on both sides of tho Atlantic that the recent movement- foreshadows an early return to parity and Britain's resumption of the gold standard. If these hopes can be realised, the resultant contribution to world reconstruction will make it second only in importance to the introduction of the Dawes plan. If Britain returns to a gold basis she will soon be followed by the great Dominions, and other countries, of which Holland, Switzerland, and Spain aro likely to be among the first.

Trade Treaty with Germany. The provisions of tho commercial treaty between Britain and Germany are arousing much interest iu the City, and particularly in banking circles. In the latter considerable difference of opinion exists regarding the advisability of permitting the German banks to reopen their branches in London.

One side suggests that London, being the monetary centre of the world, is tho international clearing house to which foreign countries must be admitted. Germany, which was formerly one of lie most important customers, cannot bo excluded now that the two countries are at peace. On the other hand, the opinion is expressed that, as Germany is Britain's competitor, it is against British interests to allow her to come to England. There is little likelihood of British banks extending their businesses to Germany, and therefore reciprocity is of no value to Britain. Metal Market and Wines. The slight setback in metals is largely attributable to the advance in sterling exchange, and the positions of copper, tin, lead, and spelter are all intrinsically strong. Tin especially is meeting with a steady demand from works in America, South Wales, and the Continent. As one broker points out, it is an interesting fact that with heavy shipments from the Straits to all parts and heavy arrivals in London, tin is no sooner discharged from the steamer than it is cleared either for English consumption or transhipment. In its review of the wine industry, the firm of W. A. Gilbey, Ltd., states that the annual world production, according to the latest returns, is estimated at a total of 4,000,000,000 gallons, of which France alone produces one-third. France's annual homo consumption of wine, apart from the quantity distilled into brandy, amounts to 1,000,000,000 gallons, or actually 150 bottles per head of the whole population compared with the United Kingdom's almost negligible consumption of two bottles per head. The latter includes wines from all European countries, as well as Australia and other British Dominions.