BRITISH TRADE

New Zealand Times, Volume L, Issue 11663, 30 October 1923, Page 6

BRITISH TRADE

STEADY IMPROVEMENT OVER 30 MILLIONS IN NEW CAPITAL FLOATED. EXCHANGES LOW. By Telegraph.—Press Aseu.—Copyright Australian and N 7 Cable Association. LONDON, October 27. News of the so-called revolution in Germany and reports of inflation of our currency, with the resulting fall in American exchange, and rumours' of the possibility of an advance in the Bank of England rate as a defensive measure, combined to cause some uneasiness on the Stock Exchange early in the week. But the Premier’s announcement, following Mr McKenna’s speech, which was regarded as representing the views of leading bankers, had a reassuring effect, and the markets closed with decidedly brighter feelings. The best proof of the inherent strength of the Stock Exchange i<s to be found in the fact that over £30,000,000 of new capital has been floated this month. INCREASED PROFITS. The slight improvement in Great Britain’s trade, reported a fortnight ago, continues, and, according to “The Economist,” it seems that- business circles here completely discount the worst than* can happen in Europe, except, of coUTP-?, a serious outbreak of war. It is true that unemployment figures have shown a small increase since the end of September, but this increase is really less than what is normally to be expected at this time of the year as a result of the customary autumnal shrinkage of employment in the building trades. Proof of better trade may be deduced from the fact that prices of industrial securities on the Stock Exchange are appreciably firmer to-day than throe months ago, “The Economist” shows that the net profits of over 200 industrial companies, whose reports are issued in July, August, and September, amounted to 17.3 millions, as compared with 10.50 millions in the corresponding reports published a year ago. The evidence of these statistics is confirmed by reports relating to various industries and markets. FALL OF STERLING.

Tlie collapse of the United States dollar exchange early in tho -week was due partly to seasonal causes; but undoubtedly the chief reason was the talk of inflation by the Government in connection with the unemployment relief scheme. This caused many business houses here and on the Continent hurriedly to cover their requirements in dollars for the customary autumn payments to the United States, under the impression that there would be a further adverse movement in exchange if the inflation rumours proved to be well founded. Mr Baldwin’s speech removed this apprehension. BOOM IN METALS. A feature of the metal markets has been the spectacular advance in the price of lead, which is now quoted at £39 os per ton, as compared with £27 jss a week ago. The turnover for the ; week amounted to 4000 tons. According to a leading firm of metal brokers this is due to cablemaking industries’ requirements for “prompt” lead. There does not seem any likelihood of a pronounced reaction in prices till this demand is satisfied. The high level ijow reached is bound to encourage shipments, and wide “backwardation” is a sign of an artificial position, which can hardly be described as otherwise 'than dangerous, 'fhe market has become rather out of hand.