FINANCE AND COMMERCE

Hokitika Guardian, 9 October 1928, Page 3

FINANCE AND COMMERCE

FORTNIGHTLY review. MORE ACTIVITY ON STOCK exchange;. (United Press Association- By Electric Telegraph—Copyright). LONDON, Oct. 0. The Stock Exchange continues* in cheerful mood, and the activity in (lie industrial market shows signs of shifting to new group's. Iron arid steel, for instance, aro showing signs of revival while artificial silk shares have gone out of favour owing to indications of over-production. Speculation is at present rampant arid is expected to continue unless there should he some violent change in the monetary position*. Signs are not wanting that some of the profits realised in industrials are being consolidated and re-invested in giltedged securities, which are very firm, definite monetary uncertainties, the past week having been marked by far the heaviest net loss of gold since the return of the gold standard. .The- bulk went to Germany. The “Statist” points out that 1 there has been an efflux of £8,(100MOT worth of wold during the past three weeks and it says that if certain special factors were not operating, it would be time to consider the advisability of bringing the bank rate machinery into r>la.v. HEAVY NEW ISSUES.

As the new issue season for winter approaches, there is ample evidence of great activity. Many new offers of capital are contemplated. This fellows the phenomenal activity practically throughout the year. For the first nine months of the Year the new issues totalled £269.254,000, compared with £201,8x7,000 for the corresponding, period of last vear. Til’s year's figures are the highest since the boom year, 1920. when nine months’ issues totalled €Bl-T.074.000, and, the full year’s £419.-1-38.000.' It is significant that out of £lB 390,000 issued in Septum tor. only £/.500,000 were to" dmuortio purposes. and nearly £7.090,,0'X). for foreign countries outside the Emu ire. PRODUCTION STATISTICS.

Tim “Economist,” wliHi has often calk'd attention to Inadequacy of British statistics on production, mercy and national wealth, publishes an important supplement giving I'*e result of the recent b’nuirv tv Mr O. D. Ttokeling. relative, to the degree of national prosperity, based on the volume of raw wor’-rvl up 1”' industry, the ooos".mntu>n of 'oa.l and the number of productive workers. Hethen combined this wi+h an iitoex of the net real income fr'“n ' fowum investments, and divided the resulting figures by an i”dcx of nmvd'-d io,n, in order to give the index of flu* r*al national income ’-er capita. Tlnv-i computed, Mr Boko'in,"’- index n ”i----hers on national prosperity for Hie years 1920 to 19->” w-ik out at 101. 77, 89. 93. 100, 'o'), oil n nd 105. WOOL SALESA

To'a.l ofierinc - -if. H.-> wool sub's j'T cl owl were 149 r '9'i I,r 92,909 wore sold, the f'm’l i”"’' l Inkm" 55,500, Yorkshire 35 590 nod America 1009 hales. Expert eomnvmtetors take non" torrosy u view of future prosmep. .Ale 11. Dawson and Co. stale that Ihe siilcs not only r'-.gistore.'l a severe decline in values, hut left both the producing and consuming :-.e>. thins of t.-e industry ill a perplexing >u“d “nrerta ■” position. Until the opening of the sales there was no indication of snob serious trouble. The scarcity o( nev yarn orders from Continental centres combined with a slight drop of prices in Sydney, began the anxiety, which was intensified by holders "f raw wo'd who could not obtain ad. quate pn'-e" for tops and yarns, deciding to send stocks for re-sale. This clpcMon to n '"- come sellers instead of buyeis did much to shake confidence, checked new business at the nimmifaeturing end. and changed the fairly comfortable position of July and August into one that anproaehes stagnation.

The whole industry, from the grower to the distributor of cloths, has received a great shock bv the sudden change of the market, hut there is no justification for the sem-pnnie felt in some quarters. The ’-p"- arrival of colonial purchases, though dear, will not he heavy, aiul of raw nva--te rial, and man u fact are cl gjoods ape generally , light. The export demand for cloth is siirnrisiindv good, and shipments for fhe <• i<rli t months of the year total 190.090.090' square yards, compared with 112.009,000 foi the correspondng period last year. CONDITIONS IN GERMANY.

Mr J. AV, F. 'Tliohvii.ll.- British Commercial Secretary to the British Ernbasisy at Berlin, in a carefuT analysis of economic conditions in Germany published in the Board of Trade Journal, says that, while suffering a temporary set-back in the home market, there is no reason to anticipate any real cheek in the country's general progress. There has been meicly a slowing down in the pace of the general' recovery from the ravages of inflation, which has been too hot. to Inst. A valuable index of the general prosperity last year was shown by the fact that the total actual dividend distributions by 3-29 industrial companies quoted on’the Stock Exchange showed a 34 per cent increase over the previous year, Twenty-seven transport companies showed a similar increase of 54 per cent. Mr Thclwull’s references to the labour situation are of special interest to Australia. He says that the most striking feature has been the increases of wages and salaries. The system of official arbitration and compulsory awards had cut .short many disputes that were threatening to become pro-

longed struggles. So far the workers have practically always obtained Increases, ibut consequent on the continual upward trend of prices, this i® giving concern. A vicious circle of wage and price increases is unbroken and no effective step to bring about stability has yet been thought out.