THE MONEY MARKET.

Otago Daily Times, Issue 19666, 18 December 1925, Page 2

THE MONEY MARKET.

SATISFACTORY POSITION

ANNUAL MEETING OF STOCK EXCHANGE.

The annual meeting- of the Dunedin Stock Exchange was held yesterday, Mr E. 11. Smith (chairman) presiding-. The annual report and balance sheet were adopted. The election of officers for the ensuing year resulted as follows: Chairman, Mill. Reeves; executive committee, Messrs E. R. Smith, W. Vivian, H. S. Fenwick, J H. Walker, W. F. Sligo. Trustees, Messrs H S. Fenwick, E. R. Smith, W, Vivian; auditor, Mr J. W. Smeaton; secretary, Mr E. J. G. Johnston. Votes of thanks were passed to the retiring chairman and committee and the secretary (Mr Pattrick) for their services during the past year. CHAIRMAN’S ADDRESS. The Chairman in his address to members said that shares in Australasian banks all showed handsome increases over prices ruling a year ago. Their reserve funds with one exception, were w-ell into seven figures, and the market price of the shares would seem to indicate that distributions from these sources in some shape or form were being anticipated by shareholders. In the insurance section each of the four companies had reserve funds which largely exceeded the capital, and in the ca.se of the Standard Co. it was more than double the capital. The rate of interest realisable on these stocks at present prices was very low and indicated that there also shareholders were expecting- some proposals from the directors. Shipping and coal shares remained much as they were 12 months since, with the execution of P. and O. deferred stock and Westport Coal both of which had failed to maintain their level. Shares of meat preserving and woollen companies had all fallen seriously, and the reports of most of these did not record profits on the usual scale—some disclosed considerable losses. Quotations for all breworv stocks had advanced rapidly since the decisions at the recent elections and a big volume business had taken place throughout the Dominion. Locally shares in the two rubber companies and the Kawaran G.M. Co. had been responsible for a large, number of transactions, and values in the former had increased during the year by fully 200 per cent.—an increase that was fully justified by the present pneo of rubber which seemed to be steady at about 4s fid per lb. The. Kawarau dam had taken longer to construct than was anticipated, but should he in operation in good time for the coming winter. The effect of the reduced flow of water in the bed of the river and the possibilities for gold getting that might tints lie created would he watched eagerly bv many people throne-b----out the Dominion. Business generally throughout the year had been on a good scale, and would have been still better had there not been so many new issues by banks and companies who had scone for the use of additional capital. The National Bank alone called for and received £500.000. LocalW, the City Corporation had been absorbing considerable sums bv debenture issues.

A distinct firming: of prices all round had been in evidence since the result of the elections in November. Tins tendency was further manifested a little later', when the resulks of the Commonwealth elections were announced. The Treaty of Loca.mo, covering seven nations, would have its effect on British and Continental markets, and this too should react favourably on this side of the world. The fact that the Commonwealth loan of £67,000,000 had been over-subscribed hr £500,000 was also a satisfactory feature in the money market of Australia and New Zealand.

During- the last year or two a number of afforestation schemes had been placed on the market. He thought it would be Hu accordance with the meeting’s wishes that a word of warning be given to investors as to the desirability of obtaining expert advice prior to taking an interest in these companies. No doubt some of them were good and sound propositions, but this might not be so in every instance.

It was, ho said, a matter of surprise to many that no stops had been taken by the Government to educate the people, both young and old, concerning the urgent need " that exists for purchasing British goods. The Old Country was our best customer for primary products, and if people continued to purchase Continental and American goods on the present scale they were merely pursuing a policy that was attributed to the .animal that succeeded in cutting its own throat. There w.as room for a. vigorous propaganda ranging from the lead pencil to the motor car. He concluded with a word of congratulation to the directors of the Exhibition. Their far-sighted vision and pluck and determination deserved tbe success that they had won. They had placed Dunedin in a very nroud position. He was sure that all joined in an expression of appreciation.