MONEY AND MARKETS

Otago Daily Times, Issue 19277, 15 September 1924, Page 7

MONEY AND MARKETS

FINANCIAL OUTLOOK OBSCURE.

EFFECT OF FOREIGN RELATIONS.

REJECTION OF RUSSIAN TREATY EXPECTED.

Press Association—By Telegraph—Copyright, LONDON, September 13. (Received Sept 14, at 11.5 pjn.) W T ith the close- of the holiday season there has been 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 bonus continues on a considerable scale. The general position of the Stock Ex- - change is well described by the Spectator’s financial editor, who writes: “The big professional operators are doing little or noUiing. The public is not selling, but is quietly absorbing either investments .or semi-speculative stocks according to- individual fancy, and the effect of such purchases on prices is emphasised by tho sound technical position of the markets and tho complete lull for six weeks in any important capital flotations of an investment descrip- , tion.” With regard to the future the Spectator adds; “Those whose opinions usually count for much in banking, finance, and commerce are not only finding tho outlook obscure, but they are inclined to discern a good many difficulties ahead. With tho end of September past there is little doubt that there will be a speedy and perhaps important revival in capital flotations, and while it is recognised that the investment resources are considerable, the big German loan and the ruissian treaty undertaking to give a British guarantee to a large loan may have a depressing effect on tho markets.” The writer anticipates that the House of Commons will turn down the Russian treaty, and this view is endorsed by other financial writers and experts, notably Mr B. Hilton Young (ex-Financial Secretary to the Treasury), who says: “The loan is little likely to materialise, but the. mare holding out hope of it has done' much harm.” .Similarly the Economist says: : 'We do not believe that there is any chance of the House of Commons sanctioning a British guarantee for the Russian i loan. Quite apart from all question of Russia’s present position and policies, the objections are very strong. We even doubt whether tho Government could obtain parliamentary sanction for guaranteeing the German loan, which is an indispensable stop in the plan for the recovery of Europe if such a proposal were afoot.” ' , THE WINE TRADE,

Reports from the French wine growing districts are far from optimistic regarding vintage which commences about too end of September. Complaints about to© weather come from all districts. An absence of sun and abnormally cold nights and heavy fains have seriously affecter the vines. The vigil erons pinned their hopes on a fine sunny September, bat so far they have been- disappointed. _ The weather has not unproved and the wine harvest is likely to be deficient both in quantity , and quality. In .an tkripation of a poor result holders of stocks of the 1923 vintages are raising their prices. in too meantime, toe* trade in Empire wines continues to be most satisfactory and the wine trade newspapers are urging Empire importing firms to ‘'dig themselves in" more firmly with the British retailing and distributing merchants. THE WOOL SALES,

The revised figures for toe wool,, sale# opening on Tuesday give toe total available as 162,500 bales of which Australian and Now Zealand amount to 148,700 bales. Expectations are running high regarding toe probable course of values. Most people in the trade, taking into consideration the sensational advance in tops which has occurred since July, anticipated a rise of 10 per cent, both in merinos and crossbreds. Meanwhile cloth makers are complaining that they cannot get for toeir cloth, anything like the prices warranted by toe carrent rates for yarns. The tailors, however, have taken time by forelock and many have already put £2 2a on the price of suits.—A. and N.Z. Cable.