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Hokitika Guardian, 17 December 1923, Page 2

At the annual meeting of tile Auckland Suck Kxclnnge, .Mr (1. C. Cieagh, the Chairman stated that there was evidence of ample money in the Dominion. Issues ol shares had heeil taken up freely, justifying their looking forward with hopefulness and confidence. The chairman ol a .Metropolitan Stock Kxchange lias to ho very careful in expressing his opinions oil economic lintlios, for, whet liar lie desires it or not his opinions carry weight with the community. We have no doltht Mr Cough ga vo very riose and eareiul . i.iisidcrnl e n to Ids subject before venturing to express an opinion of so decided an optimistic eharnetor. A\ c think he is fully instilled in his upiti--11,11 and i opiott.s cogent evidence <111'! he adduced to substantiate ids reii.asks. The slump nj 1920-21 was .settee ipit .slioit., but it lasted long onuiigh to teach the comiiiuuity a r.ludewoiuo lesson. From hankers: down to retailers, and going right down to workers the imperative need lor economy and thrift was eidoncd. and tke lesson was learned thoronghlv. linoe was an immediate elfoit at liquidulion. stocks of merchandise were sold at bargain prices. impoM- wore lestricled. were reduced Mails adjusted, hank menhafts were reduced and other d.el.ts paid. Those who were too deeply involved became insolvent, and their i" i a iis were w omul tin.

’| m ;N - began a period of economy and tluiit. and fm i unat"ly with this, the 1 rices for our primary products begun to advance. Butlei and Vhee.-o iiilofl at high pri -'s and wool common, "d to In m and then started to move upwards. Taxation was reduced and generally a belter tone prevailed The eiforts at saving were soon as .suc-

cessful. and credit began to accumulate Additional credit was obtained by the Penowing cf the Government and the local bodies in l.ondon. and toon then was niotiev for investment.. It was not until the second hull ol the year that there was auv pronounced movement in investment. ’I he N. Brew eries I,to. issued £1.009,000 in HI lor cent debentures and fully half the amount was subscribed. I In* I’-oik oi Net' Zealand issued 1.2-AOJMI' new shares of £1 t . and though X«'w Zealand .'as net eu.Pod uj on to tind the whole amount, its share w a> substantial.

(,)riii. a number of other companies obtained additional capital, and .several farmers’ freezing companies receo

sti-ieu-d the public finding I resit eapitai. I .oca I bodies issued loans on the local market, such tor instance as the l hrix!dmrrh Drainage Hoard which appealed for eSno.COO. and the Auckland Harbour Bonn! lor L'2-iO.OOH- Nie Stuck Exchanges have been active, and there* was a good demand lor varioi , lasses of shares. The demand was strong enough to force up the prices of shares, particularly those, that come within the term “gilt-edged. ’ .such tor ii.sTam-e as Bank shares. Thus Xati*nai Bank shares which were '(noted at (V. 2s (id twelve months ago. are notv m demand at £6 1 Is fid. all advance of 12s. or nearly 10 per cent. A year ihe Blink of New South Whiles .stood ai CJJ, now buyers, are gladly paying CIO, and a shade more; lit ion Dank shares were £l4, and they are now standing tit £ll 11 s. Iho .(tio,ations for Bank of X-wv Zealand slmtos have been jillVetecl by the new issue mu' a fair eompari.sou is not possible pith these shales. Even cool shares, not wjthstamling the prolonged disruption in the industry show improvements in tho share Values a.s compared with a

T)j;:iir. is n:uloiil>»<*<lly plenty of money in the ooiiniry. that is to say the octi-lu-tiiir coiidit--ions of tlus Dominion ate very healthy and vtM'.v satishietory The finances of the Government prove Inal, lor the revenue shows remarkable Imoyattcy. Furthermore the prices of the commodities we export are standing high. Butler and cheese are extremely profitable tit present prices, and wool is selling at pence above the prices ruling last- year, and that tor crossbred wool which terms about Si percent of the wool clip of tho Dominion. The income from those sources wji| ho as large, if not larger than was obtained last year, and several P'ctd bodies, such as the Auckland Klectric Tower Board, the Southland Tow<*r Bon'd, and the Auckland ( ity ( mined have borrowed in l.ondon, and New Zealand is therefore well in funds in London, in fact too much so for the banks me finding it a difficult matte 1 ' to transfer the credit „frnm London lo New Zealand. 11 io Dominion can face tire N'ew Year with nhsolutr. confidence, and there is only one thing that can mar the prospects and that is political complications in Europe.