MONEY AND TRADE

Otago Daily Times, Issue 19349, 9 December 1924, Page 7

MONEY AND TRADE

MARKETS OF THE WORLD. ANGLO-GERMAN TREATY. RETURN TO GOLD STANDARD. Pies* Association— By Telegraph—Copyriah* LONDON, December 7. (Received Dec. 8, at 5.5 p.m.) “Steady” is the best description npplicable to the Stock Exchange, which has weathered the excitement of the Egyptian tension without anything more serious happening than a sharp drop in Egyptian bonds. Generally the markets are hrm and though the settlement concluded last Thursday was noticeably of smaller dimensions than the two previous ones, there was no sign of weakness apparent. A feature has been the demand- for new issues. The Commonwealth loan was a notable success, but undoubtedly a good proportion of the applications came from scrip selling by “stags” at a slight discount Another issue which is likely to attract enormous subscription is the Greek Government’s ‘‘Refugee” loan, which has been floated under the auspices of • the I inancial Commission of the League of Nations. The proceeds will be devoted to the settlement of the Greek refugees upon the land. The total amount of the loan is £12,000,000, of which Britain’s share is £7,500,000 in 7 per cents. The price of issue is 85, allowing for redemption at par in 20 years. The loan yields over per cent., so it is not surprising that there has not only been a great rush to secure a share of its underwriting, but that long fjueues waited outside the issuing houses tor the prospectuses. STEELING AND DOLLAR.

Sterling has again provided the sensation of the foreign exchange market, the price having at one time reached dollars. There have been feverish fluctuations, and according to a financial expert this movement is not based on general economic factors, as both the movements of prices and the trade balance in the two countries would suggest a fall rather than a rise. Probably the immediate cause is the difference in the market rates at the moment between the two countries, which has resulted in the movement of a large amount of short money from New York to London. Therefore the position is far from stable. THE GOLD STANDARD.

Following this rise in the sterling and dollar, exchange discussion has risen in the newspapers regarding an early return to the gold standard. Tho Economist writes: “Undoubtedly hopes are growing on both sides of the Atlantic that the recent movement foreshadows on early return to parity and Great Britain’s resumption of the gold standard. If these hopes can be realised a contribution to world reconstruction will be made second only in importance to the introduction of the Dawes plan especially if Great Britain’s return to tho gold standard should soon be followed by the great dominions and other countries, among whom Holland, Switzerland, and Spain are the most likely to be first. ' GERMAN BANKS IN LONDON. Tho provisions of the Anglo-German commercial treaty are arousing much interest in the city, particularly in banking circles, in which considerable difference of opinion exists regarding the advisability of permitting the German banks to reopen branches in London. One side suggests that London, being the monetary centre of the world, is an international clearing house to which foreign countries must be admitted, and Germany, which, was formerly one of Britain’s most important customers, cannot be excluded now that peaceful conditions are returning. On the other hand the opinion is expressed that as Germany is Britain’s competitor it *s against British interests to allow her to come into this country. There is, moreover, little likelihood of the British banks extending to Germany, so reciprocity is of no value to Britain. THE METAL MARKET.

The slight setback in metals Js largely attributable to the advance of the sterling exchange, hut the positions of copper, tin, lead, and spelter are all intrinsically strong. Tin especially is meeting with a steady demand from the works in America, Smith Wales, and on the Continent, and as one of the brokers points out, it is an interesting fact that with heavy shipments from the Straits to all parts and heavy arrivals in tin is no sooner discharged from the steamers than 'it is deax’ed, either for English consumption or by transhipment, FRENCH WINE CONSUMPTION. In a review of the wine industry Messrs W. A. Gilbcy, Ltd., state: "The annual world production according to the latest returns, is estimated to total 4,000,000,000 gallons, of which France alone produces one-third. France’s annual home consumption of wine, apart from the quantity distilled into brandy, amounts to 1,000,000,000 gallons, or actually 150 bottles per head of the whole population, compared with the United Kingdom's almost negligible consumption of two bottles per head. The latter also includes wines from all European countries as well as Australia and other dominions.’'—A. and N.A. Cable.