TRADE REVIEW.

Hokitika Guardian, 6 January 1925, Page 4

TRADE REVIEW.

YEAR OPENS BRIGHTLY. CHEERFUL FACTS AND FIGURES. LONDON. January 3. The year 1975 has opened brightly on the Stock Exchange, the confident tone which marked the close of 1924 being maintained in nearly every department, with a satisfactory volume of business. The gilt-edged group quickly recovered from the shock if suffered on Wednesday from the surprise of the announcement of the new conversion loan issue and the prospectus thereof met with a favourable reception. Apparently the money is required to pay off the maturing s:j per cent. ExerTiequcr bonds. No amount is stated in the prospectus, but. the Stock Exchange estimates the amount wanted at between sixty and a hundred millions, and mi doubt is expressed as to a successful subscription. The issue of this loan probably oxp'ains what previously seemed rather mysterious, iiainelv the flotation o the Victorian loan at the tag-end ol the year, a time usually regarded as unpropit ions tor such issues. \ icLoria apparently wanted the money quickly, and had its loan been delayed till the New Year it would have collie into competition with the British Government's more important issue. A return ineoared by the “ Rankers' Al a; -,i lie” of the valuation ot 365 rep reseiitative Stool. Exchange rccurilo-i

makes clicerl'ill reading, lor it slums that during 192! tlioir value increased from £6,256,009,00(1 to £6.518,000,000, an increase of £262,1)01),000 or 1.1 per cent. Of this increase only £65,000,000, or 1.5 per cent., occurred ill the list of fixed interest stocks, while various dividend securities rose by £ 19< .000.000 or 9.1 per cent. The rise in British funds was a little under 2 per cent., and Colonial Government stocks, notwithstanding the issue of many largo loans, shows a satisfactory increase of nearly 31 per cent. An outstanding feature was a rise of 15 per cent, in, leading Home industrial shares, and a most spectacular advance was in tea shares, which have risen 95 per cent., while rubber shares are up 24 per cent.

Despite the increase in the supplies available for ordinary use the average price of silver in 1921 was twopence an ounce higher than in 1923. An expert in the bullion market points out tliaL the chief reason for the improvement lies in the determined effort of European Governments to assist in the general restoration liv re-estab-lishing their subsidiary coinage on a metallic basis and replacing the note issues to a large extent by silver. Russia, Germany. 1 Roland, and Austria have been the principal purchasers of silver for this purpose, and ill addition to the orders executed in New York, sixtv million ounces have been bought in London, although part of this will not lie delivered till early m 1925.

According to the annual report of a leading metal broker, the end of ’9°l witnessed the soundest situation in non-ferrous metals experienced in the last decade. The Dawes plan brought about a feeling of greater conuduice in Europe, and the prosperity which is ruling in the United States is stimulating trade, especially the industries using non-ferrous metals. The American public, after many years, once more are showing a willingness to support and finance the country’s railways. The result is a huge programme for construction and improvement on the part of the great transportation companies. Further-more,-American capital is helping Germany, whose industries are now in excellent shape, and as Germany is Europe’s foremost consumer of metals, this factor is making itself felt in the world’s metal markets. A downward movement in butter set in directly business resumed after the holidays, and seems likely to continue for the quantities due to arrive this month amount to 410.000 boxes of Australian. and -160,000 New Zealand. In fare of these heavy prospective supplies, retailers are operating very cautiously, not buying a box more than will meet actual requirements. The quality of the Australian now arriving shows a considerable improvement, tlie new grading regulations apparently working satisfactorily. One large importing firm says: “Australian best blitters are increasing in favour every week, and we think the margin of price between Australian and New Zealand will gradualy shorten.”