BRITISH TRADE

Hokitika Guardian, 7 November 1928, Page 3

BRITISH TRADE

SPECITI.ATIVB-SHARES FALL

United Press Association.— Hy Elective Telegraph.—Copyright.)

LONDON, November 3

A change came over the Stock Exchange last week, a plethora of new issues having proved more than speculators could digest. Reaction in these speculative was inevitable, after such a prolonged upward movement, and it is consequently not surprising that there has been considerable liquidation, notably of one shilling shares. There has been nothing like a panic, but many of these new shares nave fallen sharply, and numerous speculators who thought they were making easy money by buying them have bad a salutary lesson. Hut. while speculative stocks have been having a bad time, gilt-edgeds have been bolding their own fairly well. and. though business in them has been small, quotations have moved within narrow limits. Ibe War Loan closed strong, and ( olonials have generally been quietly steady. Though the City of Sydney loans met with such poor support—dealings in it. opened at .seven-eighths discount—the underwriters are not perturbed, for, as one financial newspaper points out. the stock is likely to lie readily absorbed, as the gilt-edged market is short of stock at attractive buying prices. RUB HER RESTRICTION. The end of the Stevenson rubber restriction scheme has not so far had anvteffect on the market, and the best informed people do not anticipate tha* it will cause any serious fall, for it wiM he remembered- that prices decline” sharply when the Government announced the abandonment of the scheme on April 4. so that the effect of removing the restriction lias boon discounted There has been some anxiety regarding stocks which have accumulated in Malaya—variously estimated at between "0.000 tons and well over 100,004 tons of raw rubber—which it was Scared might lie thrown on the market all «f once, but it is now believed Unit there is no danger of this. INDUSTRIAL OUTLOOK.

In its quarterly trade forecast, the Federation of British Industries states that the outlook continues unsettled, but with prospect- of improvement in the Now Year. The federation ad'hs: “ There are many indications that the liank of England hum- soon he in a sufficiently strong position to exorcise something approaching its pre-war freedom of action, thus making the actions

of (lie New York Federal Reserve Bank

of less consequence, and. unless there is abnormally drastic restriction c'f credit in America, there is no reason why the New Year should not see considerable easing of our internal monetary problem, accompanied even by a reduction of the Bank' rate.” SCOTTISH THRIFT.

The Scottish joint, stock banks contemplate making an interesting innovation, which is likely to encourage thrift amongest the humblest classes of the population. The, proposal is to open deposit accounts for any sum from one shilling upwards, allowing the usual savings hank interest of 2f per cent. Hitherto the hanks have not opened deposit accounts for less than L l. The course now proposed will open the doors of Scottish banks to a large new class of depositor, previously barred unless he were resolute enough to save tip piecemeal bis first pound. The joint stock banks will thus be in competition with the Post Office Savings Hank and similar institutions. TEA -MARKET.

'I lie report of the Indian Tea Association for 1927-23 contains interesting statistics which show that the con-

sumption per head of population in 1927 reached the highest, figure yet attained. just over nine pounds, almost double the figure for IH.HO, and nearly eight time's that for 1310, the* year when statistics of tea were first kept. The increase seems confined to tea alone, among beverages, since figures of coffee and cocoa have boon compara-

tive! v stationary since 1020, and in both cases are less to-day than in 191 S, less than one pound of coffee being consumed per head in 1027 and two and one-third less cocoa.