BRITISH TRADE REVIEW.

Auckland Star, Volume LIX, Issue 238, 8 October 1928, Page 4

BRITISH TRADE REVIEW.

STOCK EXCHANGE CHEERFUL.

IRON AND STEEL REVIVE

LARGE EXODUS OF GOLD. LONDON, October 7. The London Stock Exchange continues in a cheerful mood, and the activity of the industrial .market shows signs of shifting to new groups. Iron and 9teel, for instance, are showing signs of a revival, while artificial silk shares have gone out of favour, owing to indications of overproduction. Speculation is at preeent rampant, and is expected to continue, unless there is some violent change in the monetary position. Signs are not wanting that some of the profits reaJised in industrials are being consolidated and reinvested in gilt-edged securities, which are very firm, in spite of monetary uncertainties, the past week having marked far the heaviest net loss of Sold since the return to the gold standard, iulk went to Germany. The "Statist" says there has been an efflux of £8,000,000 worth of gold during ths past three weeks. It says that if certain special factors were not. operating it would be time to ensider the advisability of bringing the bank rate machinery »to play. World's Money Lender. Am the new issue season for the winter approaches there is ample evidence that great activity in new offers of capital is contemplated. This follows phenomenal activity practically throughout the year. For the first nine months of the year the new issues totalled £260,254,000, compared with £201,857,000 for the same period last year. This year's figures are the highest the boom, year, 1920, when the nine months' issues totalled £314,574,000, and those of the full year £419,438,000. It is significant that out of £18,306,000 issued in September only £7,500,000 wens for domestic purposes, and nearly £7,000,000 for foreign countries outside the Empire. Britons Better Off. The "Economist," which has often called attention to the inadequacy of British statistics on production, commerce and national wealth, has published an important supplement giving the result of a recent inquiry by Mr. G. D. Rokeling relative to the degree of national prosperity for the past eight years. Mr. Rokeling first made an index of production based on the volume of raw material worked up by industry, the consumption of coal, and the number of productive workers. He then combined this with an index of net real income from foreign investment. . He then divided the resulting figures by the index of population," in order to give the index of real national income per head. Thus computed, Mr. Rokeling's index numbers on national prosperity for the years 1920 to 1927 inclusive work out at 101, 77, 89, 93, 100, 100, 91 and 106. Setback In Germany. The British Commercial Counsellor at Berlin, Mr. Thelwall, in a careful analysis of the economic conditions in Germany in the board's "Trade Journal," says that while Germany is suffering a temporary setback in the home market there is no reason tti anticipate a real check in the country's general progress. The reaction is merely a slowing down of the pace of the general recovery from the ravages of inflation, which has been too hot to last. A valuable index of the general prosperity last year was shown by the fact that the total actual dividend distributions by 329 industrial companies quoted on the Stock Exchange showed a 34 per cent increase over the previous year. Twenty-seven transport companies showed a similar increase of 54 per cent. Mr. ThelwaH's references to the labour situation are of special interest to Australia. He says the most striking feature has been the increases of wages and salaries. The system of official arbitration and compulsory awards cut short, many disputes which threatened to became prolonged struggles. So far the workers have practically always obtained increases, but the consequent continual upward trend of prices is giving concern. The vicious circle of wage and $rice increases is unbroken, and no effective step to bring about stability has yet been thought out.