BRITISH TRADE REVIEW

New Zealand Herald, Volume LXV, Issue 20071, 8 October 1928, Page 7

BRITISH TRADE REVIEW

SPECULATION ON EXCHANGE. FLOW OF CAPITAL ISSUES. CONDITIONS IN GERMANY. Australian and N.Z. Press Association. (Received October 7, 5.30 p.m.) LONDON. Oct. 0. The London Stock Exchango continues in a cheerful mood, and the activity in tho industrial market shows signs of shifting to new groups. Iron and steel, for instance, are showing signs of a revival, while artificial silk shares have gone out of favour, owing to indications of over-production. Speculation is at present rampant, and is expected to continue. unless there is some violent change in the monetary position. Signs are not. wanting that some of the profits realised in industrials are being consolidated and reinvested in gilt-edged securities, which arc very firm, in spite of monetary uncertainties, the past week having marked far the heaviest net loss of gold since tho return to the gold standard. Bulk went to Germany. Large Export o! Gold. Tho Statist says there has been an efflux of ££1,000,000 worth of gold during tho past three weeks. It says that if certain special factors were not operating it would bo time to consider the advisability of bringing the bank rate machinery into play. As the new issue season for the winter approaches there is ample evidence that great activity in new offers of capital is contemplated. This follows phenomenal activity practically throughout the year. For tho first nine months of the year tho new rssucs totalled £269,254,000, compared with £201,857,000 for tlie same period last year. This year's figures are tho highest since tho boom year, 1920, when the nine months' issues totalled £314.574.000. and those of the full year £419,438,000. It is significant that out of £13,306,000 issued in September only £7,500,000 were for domestic purposes',' and nearly £7,000.000 for foreign countries outside the Empire. Analysis of National Income. The Economist, which has often called attention to the inadequacy of British statistics on production, commerce and national wealth, has published an important supplement giving the result of a recent inquiry by Mr. G. D. liokeling relative to the degree of national prosperity for tho past eight years. Mr. flokeling first made an index of production based on the volume of raw material worked up by industry, the consumption of coal, and the number of productive workers. He then combined this with an index of net real income from foreign investment. He then divided the resulting figures by the index of population, in order to give the index of real national income per head. Thus computed, Mr. Rokeling's index numbers on national prosperity for the years 1920 to 1927 inclusive work out at 101, 77, 89, 93. 100, 100, 91 and 105. The British Commercial Counsellor at Berlin, Mr. Thelwall, in a careful analysis of the economic conditions in Germany in the board Trade Journal, says that while Germany is suffering a temporary setback in the home market there is no reason to anticipate a real ch(V:k in the country's general progress. The reaction is merely a slowing down of the pace of the general recovery from the ravages of inflation, which has been too hot to last.. A valuable index of the general prosperity last year was shown by the fact that tho total actual dividend distributions by 329 industrial companies quoted on the Stock Exchange showed a 34 per , cent, increase over the previous year. Twenty-seven transport companies showed a similar increase of 54 per cent. Arbitration in Germany. Mr. Thelwall's references to the labour situation arc of special interest to Australia. Tie says the most striking feature has been the increases of wages and salaries. The system of official arbitration and compulsory awards cut short many disputes which threatened to become prolonged struggles. So far the workers have practically always obtained increases, but the consequent continual upward trend of prices is giving concern. The vicious circle of wage and price increases is unbroken, and no effective I step to bring about stability has yet been thought out. MARKET FOR LINSEED. The Department of Agriculture lias received tho following cablegram, dated October 4, from Messrs. Landale and Clark, Limited, Calcutta, with reference to the linseed market:—"We quote. £l6 17s 6d for linseed per ton net, C. and F., Sydney, for immediate shipment. The market is dull."