THE STOCK EXCHANGE.

New Zealand Herald, Volume LXI, Issue 18888, 10 December 1924, Page 7

THE STOCK EXCHANGE.

TENDENCIES OF INVESTORS.

DEMAND FOR GILT-EDGEDS.

LESS MONEY FOR MORTGAGES.

The annual meeting of tho Auckland Stock Exchange was held yesterday, the chairman, Mr. G. C. Creagh, presiding.

In his annual review, the chairman said the past year had been if anything a period of greater prosperity than the previous twelve months. The business of sharebroking was now probably on a better footing than ever. A very large and continually-growing percentage of tho public had learnt the lesson that mortgages were not the only form of investment worth consideration, : and a further increase could be expected in the number of thoso who would be prepared to consider investing capital in gilt-edged securities, whether debentures or shares.

At the same time it was to be hoped there would before long bo a larger amount of money available for mortgage purposes than for some time past. This applied more particularly to some of the great financial institutions which had practically given up making advances on mortgage since tho advent of the Government free-of-income-tax debentures. Since the income tax had begun to fall, it would no doubt lead-to a greater disposition on the part of these companies to turn to mortgages as a suitable form of investment for surplus funds. In spite of all the talk about the lightness of the money market, there had been ample money, available for investment purposes during the year. This was borne out by tho fact that there had been a largo number of successful issues of debentures with, so far as he was aware, i not one failure. Quito a number of fresh issues of shares had also been favourably received by tho public. It would appear that local bodies were inclined to borrow excessively, and the Prime Minister had indicated that steps had been taken which it was hoped would prevent a continuance of the evil. The danger, of course, was that such borrowing was to the detriment of the producers, who could not hope to compete in tho money market with the high rates of interest paid by local bodies. Tho exchange membership stood at 28, as against 30 a year ago. An old and esteemed member, Mr. F. Walker, had died. The other vacancy was caused by the departure of Mr. S. M. Wren from Now Zealand. His seat had been acquired by the exchange. The following were elected members of tho committee: —Messrs. Creagh (chairman), H. E. Forde (secretary), ,T. W. Frater (vice-chairman), H. Alien, \V. B. Colbeck, A. I. Farmer, W. X. Gamble, and E. J. Richardson.