MONEY AND MARKETS

Evening Star, Issue 19659, 12 September 1927, Page 7

MONEY AND MARKETS

FORTNIGHTLY BEMU INDUSTRIAL SHARES ACTIVE COLONIAL STOCKS FIRM. Press Association—By Telegraph— Copyright LONDON, September 11. The activity in industrial shares on the Stock Exchange continues, with artificial silks as the most x )o P u l ar gambling counters, and large numbers of them are changing hands daily. Giltedgeds remain dull, the beneficial effects of tho announcement of the Government’s new conversion scheme having been only short-lived owing to tho uncertainty about the terms, which will not bo announced until the end of next week. A satisfactory' feature is the strength of colonial stocks, particularly recent issues, which, though not active, remain firm, the last Commonwealth loan closing at only a quarter discount. Discussing with the Australian Press Association the flotation of the recent Australian loan, a prominent New York banker said ho behoved it would bo to Australia’s advantage to confer with prominent influential groups of bankers in New York, and thus obtain the best terms. It would also ensure a wider distribution of Australian securities in tho American market, and so avoid congestion of Australian securities therein, such as occasionally occurred im London! • ‘ CENTRAL BANKING.

The development of the central banking systems in Australia and Now Zealand continues to attract tho attention of linancial experts. Commenting on tho Bank of New Zealand granting-long-term advances to the agricultural community, tho ‘ Financial News ’ says: “ While wo can readily appreciate tho motives which prompted tno bank to make this departure, tho assets it has thereby acquired scarcely seem of tho kind suitable for a central bank, one of whoso essential duties is to maintain a highly liquid position. Doubtless this long-term financing may be looked upon as a temporary arrangement, which will ho transferred to other hands, as purely commercial institutions show a stronger growth and plans for the bank’s regulatory activities began to take* more definite shape.” THE METAL MARKET.

Discussing the position, a well-in-formed metal market correspondent says: “There is no denying the fact that tho price has now fallen to an uneconomic level for many producers. There has been much unloading by speculators, who recently purchased,at a higher level, and this, combined with the rather free selling by leading dealers, accounts for the continuous, fall. It is feared that the price will inevitably drop further. The main trouble is excessive world production, and this must be corrected .to some , extent before the market can right itself.’’