THE STOCK EXCHANGE.

Otago Daily Times, Issue 20287, 21 December 1927, Page 6

THE STOCK EXCHANGE.

ANNUAL MEETING. PAST YEAR REVIEWED. The financial position of the Dominion during the past year was reviewed at the annual meeting of the Dunedin Stock Exchange held yesterday afternoon. Mr Harman Reeves (chairman) presided. In moving the adoption of the annual report and balance sheet, the Chairman said that he was afraid that brokers could not have had such a large turnover in stocks and shares as last year. In common with ©very other business, dealing on the Stock Exchange had been affected by the general depression. In addition to this, the dullness had been accentuated by "tiie large number of new issues of shares that had been offered, particularly by most of the Australian banks carrying o’n business in New Zealand. It was estimated that something like £6,000,000 of new capita] had been asked for by the banks and loan trading companies from their shareholders. This had affected the price of shares very much—so much indeed that, whereas in former years when a new issue of shares was forecasted, the stock would have a rise in the market, this year it had, in many cases, the opposite effect, and shares carrying “ rights ” to a new issue would drop in the market. No fewer than five Australian banks had made new issues, besides which Dalgety and Co., Ltd., and Goldsbrougb, Mort, and Co., Ltd., had also called upon shareholders to supply further capital. It was to be hoped that the coming year would see a respite from the issue of fresh capital.

On top of all this there had been the drought in Australia and the very severe tlrop in the price of metals. This latter had had the effect, within 12 months, of depreciating in market value the shares of the five principal Broken Hill companies listed on the Melbourne Stock Exchange by no less a sum than £5,556,000. An increasingly large amount of investments was made by clients in Australian banks and companies, so that the large, fresh issue of shares, the drought in Australia, and the drop in the price of metals had all affected the prices of shares in that country, which had been reflected on New Zealand markets. This bad been a great opportunity for local investors with capital to make purchases. Most shares in local companies had had a recovery in price during tho last few months, particularly refrigerating and stock and station company shares. In the mining section the high hopes held by some investors of a recovery had not been fulfilled. The St. Buthans mine (from which great things had been expected) had gone into liquidation, thus ending for the time being any chance of the dce|p leads being worked. Very little quartz mining was going on, but a fair amount of sluicing was carried on, and there was hope that a revival in dredging for gold with more modern machines might bo successful. ft was gratifying to know that prices for the Dominion’s exports, such as wool, butter, cheese, mutton, and lamb, had improved and that the immediate future looked hopeful, but he thought it would be wise if strict economy from the Government downwards were adopted whilst good prices lasted, so that, when these again fell, the Dominion would be the better able to meet the position. It was really surprising how near the edge of financial stringency tho Dominion as a whole lived. If there were a set-back in the price of woo! or butter the whole country was affected. Economy was preached, arid forced economy was the order of tho day throughout the land Would it not be wiser to continue to restrict the country’s imports, adopt a conservative policy, and save up for the *’ rainy day ” whilst things were good At the present time money was plentiful, as was shown by the price of Government per cent. Soldiers’ Settemont Loan, the market price of which , was to day £lOl 5s per £IOO.

It was difficult to obtain any sound municipal or public bodies’ debentures showing much over 5i per cent,, whilst another evidence of an easing of money was the hardening to £97 of the per cent, free of income tax stock. The present indications were that money for sound investment shares and public bodies’ debentures would be plentiful, and that the rate for (lie latter would stand round 5i per cent. The motion was carried.

The election of office-bearers resulted as follows :—Chairman, Mr Harman Reeves committee —Messrs W. F. Sligo, E. R. Smith, W. J Watson, J. H. Walker, and W. H. M'Leod ; trustees —Messrs Harman Reeves, E. R. Smith, and H. S. Fenwick; auditor, Mr J. W. Smeaton Votes of thanks for their work during the year wore accorded the chairman, the secretary (Mr E. J. G. Johnston), the recorder (Mr E. L. Davidson), and the readers.