TRADE REVIEW

Southland Times, Issue 22486, 22 January 1935, Page 5

TRADE REVIEW

MONEY AND MARKETS

CONFIDENT TONE EVI-

DENT

NEW CAPITAL ISSUES

(United Press Assn.—Telegraph Copyright.) London, January 19.

The Stock Exchange opened the year well, and although during the week which finished yesterday there have been disturbing influences, notably fluctuations in the dollar and the franc exchanges and uneasiness regarding the outcome of the Saar plebiscite, the markets closed with a confident tone. The Saar’s return to Germany was welcomed as adding materially to Germany’s economic strength, and it has brought about a considerable improvement in the price of German bonds. The flow of new capital issues continues and the avidity with which they are being taken up affords ample evidence that a plethora of money is awaiting investment. Some of the results are astonishing. For an issue of £1,000,000 Norwegian Bank bonds the applications were so large that no allotments were made for applications less than £2OO, and very large applications only received 2 per cent, of the amount they applied for. The Sussex seaside resort, Bexhall, offered £350,000 of 3 per cent, at £lOO 10/- and received applications exceeding £10,000,000. An industrial company offered for subscription 650,000 shares and applications were received for nearly 1,000,000 The butter position is showing signs of an improvement, for though the arrivals of Australia and New Zealand continue to be large there has been a considerable shrinkage from the Continent, largely owing to Germany buying heavily, with the result that the total imports in December amounted to 707,063 cwt compared with 817,060 last December. The consumptive demand continues to be excellent and stocks in cold store are now only a little over 500,000 boxes, a very material reduction compared with a few weeks ago. Another good feature is the report that the United States will require to import considerable quantities. Only small purchases have been made here yet, but the fact that inquiries are being made is regarded as a “bull’’ factor. With a return to mild weather the egg market again collapsed and Australians are very difficult to sell, even at the terribly low price at which they are offered. The cold stores here are crammed with eggs from all sources for the imports'in December reached the colossal figure of 1,820,458 long-hun-dreds and buyers are only operating for immediate requirements in the expectation that prices will go still lower.