BRITISH TRADE

Otago Daily Times, Issue 19702, 1 February 1926, Page 7

BRITISH TRADE

HOPEFUL OUTLOOK. SPEECHES BY FINANCIAL EXPERTS. (Pres* Ainpclatlon—By Telegraph—4 Jopy right., LONDON, January 30. (Received Jan. 31, at 5.5 p.m.) The optimistic note regarding the outlook for British trade struck by Mr M'Kenna in his speech on Tuesday has been echoed in addresses by the chairmen at the meetings of five other important banks, including such -well-known financial authorities as Mr Walter Leaf, of the Westminster Bank, and Sir Felix Schuster, of the National Provincial and Union Bank of England. All these experts have taken a distinctly hopeful view. Their speeches have had a reassuring effect in the city, and have given rise to a general feeling of quiet optimism regarding the financial and commercial outlook. fcso far the Stock Exchange has hardly reflected this optimism, and business in speculative stocks has been very slack. This is mainly due to the setback in rubber, which has caused a considerable number of forced sales, and the weakness in this section has spread to other industrials, but gilt-edged stocks have been conspicuously firm, and though the business has been only on a small scale prices have hardened all round. Colonial stocks have been notably strong and several recent issues which were lately quoted at a discount have either reached par or are very close to it. The firmness of' gilt-edged stocks has given rise to rumours that the Government is likely to bring forward another large conversion loan scheme soon, but opinions regarding this are very conflicting, and it is pointed out that there is no immediate need for any conversion, as there is nothing falling due till February, 1927. One cause of the firmness of gilt-edged stocks is undoubtedly the advance in the American exchange rate in London, which is to-day 4.86 3-B—the highest point since December, 1914. Another interesting exchange movement is the advance in the Butch rate to 1212|, which brings the guilder to a discount as compared with sterling for the first time for a long period.—A. and N.Z. Cable.