BRITISH TRADE REVIEW

New Zealand Herald, Volume LXV, Issue 19928, 23 April 1928, Page 9

BRITISH TRADE REVIEW

GILT-EDGED STOCKS RISE. DOMINION CONVERSION LOAN. EXPECTATIONS ON EXCHANGE. Australian and N.Z. Press Asaociaticm. (Received April C2, G. 5 p.m.) LONDON, April 21. The American demand for the British 4 per cent, funding loan has-again been the principal feature of the Stock Exchange. This follows the listing of the funding loan on the Now York Exchange on April 12, which is regarded as a most important Step in the internationalization of securities, and as likely to lead to developments which will tend toward closer relations between the New York and the London Stock Exchanges. The immediate result of this listing has been a considerable inquiry for all gilt-edged stocks, notably the funding loan, which rose smartly, bat relapsed later, on profit-taking , by British investors. The stock was readily absorbed on New York account.

The marked strength of gilt-edged stocks has given rise to many reports of forthcoming capital flotations of an investment character in the near future, and certainly the time seems to be favourable. The first to arrive -a the Western Australian loan, of £3,000,000 at 5 per cent, at 98, which lias been well received. Another possible early borrower is New Zealand, which has nearly £30,000,000 falling due for repayment in November, 1929. It seems rather early to talk about this conversion, but some financial writers anticipate that repayment will be dealt with piecemeal, and that an early commencement will bo made. In any case, New Zealand's annual issue of a new money loan i.. expected next month. There ai*e no signs of any improvement in the apple market, and importers are gfetting decidedly anxious regarding the future, especially in view of prospective heavy arrivals. The only ray of hope that can be found is that recently Britain and the Continent have been experiencing a spell of cold • weather, which seriously affected the blossoms of all varieties of the fruit. This is expected to mean small crops of all the European fruits, so' that later arrivals from Australia and New Zealand ought not to meet so much competition as usual from cherries and other soft fruits. But for near arrivals the outlook is far from promising. One of the leading firms of fruit brokers, commenting on the position, says —"Reasons for the unsatisfactory prices are, first, that the public has become less satisfied with apples, as the American fruit this year, although of good appearance, did not reach the usual standard as far as eating qualities were concerned. Secondly, that buyers obtained information of ' heavy quantities of Australian fruit that had arrived and were on the way, and they were most diffident about taking more than immediate requirements." Other traders express similar opinions. They say the publication in the newspapers of official statements of enormous supplies coming from Australia and New Zealand are greatly detrimental to the producers' interests.

It is interesting to learn that finanual circles in London are already anticipat ng arrangements for the conversion of .he JSLew Zealand 4 per cent., consols, which mature on Noveniber 1, 1929. As the Herald has recently oxpla'inbd, this debt was created in the 'eighties by the consolidation of existing stock and by subsequent issues of stock in the same category. According to the last Budget, the amount of debt maturing in London in 1929-30 is £29,.571,240. This is approximately the amount of the 4 per cent, consols. "During the last few weeks, considerable amounts of this stock have been purchased by the Public Debt Commissioners and cancelled. Reference is also made to anticipations of New Zealand's annual loan. Following is a summary of the issues in recent yeais, with details of the terms: — Rate. Issue Net Amount. p.c* price. yx«M. 192:? . . £4.000.000 4 92 £4 2 6 1924 . . 5.000.000 , U 95 ilB 1 1925 .. 7.000,000 41. 04} I 1 ® 1 ? 1920 .. 6,000,000 5 98 i 5 '2 6 1927 . . 6,000.000 5 991 o 010 The 1926 loan was issued immediately after the general strike in Britain and closed within two hours, no fewer than 24.059 applicants having offered in the aggregate £119,600,000. Last year's loan was issued on 3Vlay 2 and was over-sub-scribed. LARGE SHEEP STATION SOLD. BID OF £115,000 ACCEPTED. [HY TELEGRAPH. —PRESS ASSOCIATION.] GISBORNE, Saturday. The lai-ge station property of Tangihau, 32 miles' from Gisborne, consisting of 15.157 acres, carrying 18,000 sheep and 1900 cattle, was offered at auction to-dav. The bidding started with an offer of £lll,OOO, and after a pause a bid of £115,000 was put in on behalf of the mortgagee, the Bank of Australasia, to whom the property was knocked down. THE A.M.P. SOCIETY. BUSINESS IN NEW ZEALAND. SYDNEY, April 20. The annual meeting of the Australian Mutual Provident Society was held this afternoon. The chairman referred to the splendid progress during 1927. Further records had been created and the casli surplus for the year was the magnificent total of £3,070,513.

The operations of tho society in New Zealand were reviewed by Mr. R. A. Holmes, of tho Dominion board of directors. "I am happy to say that New Zealand has surpassed our most sanguine anticipations and we are very proud of her record business for the past, year," he remarked. "To complete total new business for both departments of over £4,000,000 from a population of 1,375,000 is undoubtedly a remarkable performance. Wo easily beat all previous records, being £469,788 ahead of 1924 (our previous best year) in the ordinary department • and £40.527 ahead of 1926 total in the industrial department,. Not only did wo complete exceptional new business, but we retained an improved proportion of the old business, and the net increase was highly satisfactory. "To show tho progress of the society in New. Zealand I would say that the new business 10 years ago was £1,338,256 from both departments, as against over £4,000,000 for 1927, the business on the register having inc/easecl during the same period from . M Referring to the society's investments in New Zealand, Mr. Holmes said that notwithstanding tho somewhat unsettled land values the society's landed securities have stood the test well arid the fact that all interest due in 1927 was paid before December 31 is evidence o! : the care which has been exercised. The oociety's invest-ments-in Now Zealand Government aiid local body bonds now total over £9,500,000. so that the as:stance rendered to New Zealand by the society is not inconsiderable.