CHEERY FORECAST

Hokitika Guardian, 15 December 1927, Page 1

CHEERY FORECAST

.PROMISE OF A RECORD YEAR AUCKLAND. Dec. 13. Ret ter times are ahead for New Zen land. The period o! financial stringency is gradually being left behind, and soon days of more general prosperity will he with tlie country oner again. This, in effect, was the tone of the annual address to members of the Auckland Stock Exchange given this morning bv the chairman. Air G. C. CVeagh. “It must he gratifying to every one of us.” said Mr Creagh. in reviewing the past year’s operations, “In realise that although New Zealand. in common with other countries, has been passing through a time of financial stringency we. as a body, have had a. very satisfactory year. The turnover, although perhaps not equal to that of the previous year, has again boon large and each .succeeding year furnishes fresh evidence that the public, to nil increasing extent is interesting itself in the share market and giving support lo members of our profession. So far as Hie coming twelve months are concerned, with Ihe promise of a record year ahead, the outlook for all classes of the community appears to he very bright, and "C, in common with the rest of the community. should share in flic general prosperity that is likely to characterise the year. The very large amount of capital raised by tbe Australian banks during tbe period from September, 192(1 to November of tbe present year lias had a considerable effect on the financial conditions for tlic period and helped to accentuate the stringency to

which reference lias already been made. The total amount of capital raised by the hanks was £4,243,000. and in several instances shares were issued at a premium, the total amount of premiums being £1.913.000. This means, of course, the hypothecation of £0.150,000 for new bank shares, which would otherwise have been available for investment in existing securities. “Some years ago 1 drew attention to the fact that the number of people. of moderate means holding shares in our various companies was ever on the increase, and this still continues to he the ease which. T think it. will he agreed, is a. very satisfactory state of affairs. There can he no doubt that so far as New Zealand companies at least are concerned the average shareholder is not a capitalist, but a man of moderate income.”

In previous years, continued Air Creagli. he had referred to the serious menace to the public of Clio share salesman. Investors would lie wise in their own interests if before purchasing shares they consulted a momlter of a recognised stock exchange. “It appears to me. however.” said Air Creagli “that something more than such a warning is necessary lor the protection of llio public. Tt is high time legislation was introduced dealing with the (pies) ion of slinroliawkors, and those who employ them. Tt should ho war to the knife on all fraudulent company promoters and swindling-shares salesmen.”

Interference by coimpuny directors with the rights of company shareholders was denounced by the speaker, who slated that the question had had the attention of the Stock Kxelinngc Association, and in future any company which interfered with the rights of its preference shareholders would he removed from the official list.

Touching! on the question of balancesheets Air Creagli stated that there was real need for a, reform in the legislation regulating their compliance. There were, no doubt, many exceptions. hut it was undeniably true that a large number of balance-shoots conveyed very little information to shareholders Jt was not an easy matter to deal with. lull nevertheless it should ho faced, and every balancesheet should he drawn up in such a way ns to give shareholders the tidiest possible information. Tt was within file knowledge of most people who handled balance-sheets that in many of them only the minimum of information was afforded, and shareholders wor kept in ignorance of the true state of affairs.