FINANCE AND TRADE

New Zealand Times, Volume LI, Issue 11934, 15 September 1924, Page 3

FINANCE AND TRADE

LONDON MARKET REPORTS BRITISH GUARANTEE FOR RUSSIAN LOAN DOUBTFUL. OBJECTIONS VERY STRONG. Bv Telegraph.— Press Assn. —Copyright Australian and N.Z. Cable Association (Received September 14, 11.5 p.m.) LONDON, September 13. With the close of the holiday season there is. a ! slight expansion of business on the Stock Exchange, though no appreciable revival is noticeable in the leading markets. The only briskness has been in the foreign market, where the gamble in German bonds continues on a considerable scale. The general position of the Stock Exchange is well described by the “Spectator’s” financial editor, who writes: “The big professional operators are doing little or nothing. The public is not selling, but quietly absorbing either investments or semi-speculative stocks, according to individual fancy, and the effect of such purchases on prices is emphasised by the sonnd technical position of the markets and a complete lull for six weeks in any important capital flotations of the investment description.’’ OUTLOOK OBSCURE. With regard to the future' the “Spectator’ ’ adds: “These whose opinions usually count for much in banking, finance and commerce are not only finding the outlook obscure but are inclined to discern a good many difficulties ahead. At the end of September there is little doubt there will be a speedy and perhaps important revival m capital flotations, and while it is recognised the investment resources are considerable a big German loom and the Russian treaty undertaking give British guarantee to a largo loan,‘and may have a depressing effect on the markets.” The writer anticipates that the House of Commons will turn down the Russian, treaty. This view is endorsed by other financial ■writers, and experts, notably Mr E. Hilton Young, ex-financial secretary to the Treasury, who says the loan is little likely to materialise hut the mens holding out of a hope of it has done much harm. Similarly the “Economist” says: “We do not believe there is any chance of the House of Commons sanctioning the British guarantee for the Russian loan. Quite apart from all "questions of Russia’s present position and policies the objections are very strong. We even doubt whether the Government could obtain parliamentary sanction lor the guaranteeing of a German loan which is an indispensable step in the plan for the European recovery if such a proposal were afoot.” FRENCH WINE TRADE. Reports from the French wine growing districts are far from optimistic regarding vintage which commences about the end of September. Complaints regarding the weather oome from all districts and the absence of the .sun, abnormally cold nights and heavy rails have seriously affected the vines. The vignerons pinned their hopes on a fine sunny September; so for they have beon disappointed as the weather has not improved. The wine harvest is likely to be deficient, both in quantity and'quality.; In an tiedpaition of a poor result holders of stocks of 1923 vintages are . raising prices on that account. In the meantime the trade of the Empire in wines continues most satisfactory, and the wine tirade newspapers are" urging the Empire importing firms to “dig themselves in” more firmly with the British retailing distributing merchants.