BRITISH TRADE.

Hokitika Guardian, 11 December 1924, Page 1

BRITISH TRADE.

FORTNIGI IT I„Y REYIDW. THE STOCK EXCHANGE. LONDON December 7. “Steady” is tho best description applicable to the Stock Exchange, which has weathered the excitiment without anything more serious happening than a sharp drop in Egyptian bonds. Generally tho markets are firm and though the settlement concluded last Thursday was noticeably ol smaller dimensions than the two previous there was no sign of weakness apparent. A feature has lieen the demand for new issues. The Commonwealth Loan was a notable success, hut undoubtedly a good proportion ol the applications came from stags, and from scrip selling at a slight discount. Another issue which is likely to attract an enormous subscription is the Greek Government’ “refugee” loan, floated under the auspices of the Financial Commission of the League of Nations. Tlie proceeds will he devoted to the settlement of Greek refugees upon the hind. The total amount of the loatt is Cl 2.800.000 and Britain’s share is £7.100,009 in 7 per cents. The issue prices is 81. Allowing for redemption at. par in twenty years the loan yields over B’, per cent, so it is not snrprsing, not only that there was a great rush to secure a. share in its underwriting, Iml that long queues waited outside the issuing house for prospectuses. THE RISE OF STERLING.

Sterling has again |>rovidcd tho sensation of the foreign exchange market, the price having at one time reached 4(591. According to a financial expert this movement is not based on general economic factors as both movements of prices and trade balance in the two countries would suggest a fall rather than a rise. Probably the immediate cause is the difference in the mat kef money rates at the moment between the two countries, which has resulted in the movement of a large amount of short money from Now York to London. Therefore the position is far from stable. THE GOLD STANDARD. Following this rise in sterling dollar enchatige a discussion has arisen in the newspapers regarding our early return to it gold standard. The “Economist” writes:— “Undoubtedly hopes are growing on both sides of the Atlantic that the recent movement foreshadows an early return to parity and Great Britain’s resumption of the gold standard. If these hopes’ can he realised a contribution to world reconstruction will he made second only in importance to the introduction of the Dawes Plan. If Great Britain returns to a gold standard she will soon ho followed hy tho great Dominions and other countries, among whom Holland, Switzerland and Spain are most likely to lie first. THE ANGLO-GERMAN TREATY. The provisions of the Anglo-German Commercial Treaty arc arousing much interest in tlie city, particularly in hanking circles. A considerable difference of opinion exists among bankers regrading the advisability of permitting the German hanks to re-open branches i" London. One side suggests that London, being the monetary centre of the world, is an international clearing house to which foreign countries must he admitted. Germany, which formerly was one of the most important customers, cannot- he excluded now we are at peace. On I'm other hand the opinion is expressed that Germany being our competitor it is against British interests to allow her to come into this countrv. There is little likelihood of British hanks extending to Germany, so reciprocity is of no value to us. THE METAL MARKET. The -slight setback in metals is largely attributable to the advance in toiling exchange and the .positions of the copper, tin. lend and spelter are all intrinsically strong, tin. especially meeting with a steady demand i l out works in America. South Males and the Continent, and as one of the brokers point out. it is all interesting fact that, witli heavy shipments from the straits Settlement to all parts and heavy arrivals in London the tin no sooner is discharged ex steamers than it i.s cleared, either for English consumption or transhipment. THE \YIXE TRADE. Tn a review of the wine industry Messrs W. A. Gilhov. Limited, state that the annual world production according to latest returns i.s estimated to total 4.099.099.009 gallons, of which France alone produces one third. France’s annual lmme consumption of wine apart from the quantity distilled into brandy, amounts to a thousand million gallons, or actually a hundred and fifty bottles per head of the whole population. compared with the 1 nited Kingdom's almost negligible consumption ~f two Kittles a head which includes wines from all European countries as well as Australia and other dominions.