Trade Position in Britain

Hokitika Guardian, 13 January 1922, Page 2

Trade Position in Britain

AUSTRALIAN AND N.Z. CABLE ASSOCIATION. LONDON, Jan. 11. Business on the Stock Exchange in tlie first week of the new year has been somewhat disappointing. Various factors are contributing to the dullness, notably some fairly large selling orders, rumours of a general election, considerable profit taking, and last, but not least, the new issues by South Australia, Chile, and the Bristol Corporation, Buenos Ayres and Western Railway, aggregating nearly £8,000,000. All these are over-subscribed. Bristol’s £1,000,000 at 5} per cent at 9(5, being subscribed thirteenfold in two hours and Chile's of £1,657,000 at if peF cent'at 75 fivefold, also in two hours. This heavy subscription diverted money from the existing stocks and caused a 1 flatness for British gift-edged securities, especially as it is known in the street that fresh issues are coining.

The fact that Bristol was aide to secure a loan i per cent cheaper than South Australia caused some comment in colonial circles. The explanation is simple. In the first place, corporation stocks are always popular with the investing public, who also like their security near at hand. Bristol is a thriving community with a population of 377,000. with indebtedness a little over £9,000,000. .MONEY MARKET EASY.

Easy conditions continue in the money market. Treasury Bills were allotted at a fraction under Oos per cent, the lowest on record, reviving the hope of a reduction in the hank rate before long. SHIPBUILDING IN BAD MAY. The severity of the general trade depression of 1921 is illustrated by the number of bankruptcies, which in the United Kingdom totalled 3495, compared with 1594 the previous year and 753 in 1919. Turner, Davidson and Company write that the depression in shipping values has been accentuated by the throwing into the market of various fleets of steamers and forced Sales of new steamers, for which the owners have been unable to complete. There is no guarantee that more fleets, especially those purchased at high prices, may not be thrown on the market. The owners of pre-war boats cannot hope to do more than make ends meet until the trade improves sufficiently to induce a large proportion of the laid-up tonnage to resume business. The prospects for shipbuilding are worse than ever. Ihe tramp tonnage cannot be built under £l2 per ton, which is prohibitive. In the absence of orders it is only a question of time before a great many yards must close.