TRADE BOOMING

Hokitika Guardian, 22 August 1929, Page 2

TRADE BOOMING

RECORDING ACTIVITIES IN . UNITED STATES. THE FINANCIAL POSITION. According to official advice from the United States Department of Commerce received by Mr C. ICunkel, assistant American Trade Commissioner for New Zealand, reports from practically every section of the country inthat many records have been established in production and distribution both for. tlie month of June and the half-year period. The long-herald-ed seasonal decline has failed to materialise to any great extent, and the key industries are maintaining their high rate of activity. Credit conditions have eased appreciably, and trade in general is well above the level of the corresponding period cf last year.

STUCK EXCHANGE TRANSACTIONS

Trading on the New York Stock Exchange during June established a now record for that month, although the turnover was the smallest of any month since August 1923. Sates totalled-' 69,547,510 shares, which brings . the volume of trading for the year to date to .537,865,790 shares or 'at tlie rate of more than one billion shares a year, the heaviest six months trad-' ing in the history of the exchnnge. Not deterred by the hig hmoney rates which prevailed, the buying pub'ic reentered the market in the final week with the result that the price averages were pushed up to new record levels. The New York “Times” average of 50 combined stocks not only recovered the 13 point I'ss sustained in May, but made an additional gain of even greater range. The month opened with the average at- 235.09. and closed at 224.52. a net gain of 29.43. points the largest gain of any month op record- The previous record was estjabiished/ip November, 1923, when the net gain was; 18.66. points. . •. " Dealings: 'in / bonds amounted to/a par vqlue of : 236,485,950 dols., an increase: of; 7.853,500 dols., over tlie preceding month. As with stock . transactions, tyading was active during the final 'week of the month. . Tlie average of 40 domestic issue opened the month fit 83.50. arid closed at. 86.53.

Trading on the Curb Exchange was the heaviest of any month in the history of the .institution, with sales .totalling 44,858,61 Q shares. This brings the total far the year to date to 207, 882,034 shares.

MONEY RATES, Aloney rates in general were decidedly better in June than in the preceding month. For the first half of the month call loans ranged from 6 to 8 per cent,, then for ten day shield steady at 7 per cent. During the dosing week large withdrawals of ifunds sent tne rate up to 10 per cent., where it remained until the end. of the. month, xne average rate of new call loans for the month was 7.689 per cent., and of renewals 7.600. .{Compared with 8.387 and 8.709 per cent., respectively for May. Rates on time loans against securities were also lower during June At the beginning of the month 60 and 90 day loans ruled at 8-J per cent, and six montns’ loans were 81 to 84 per cent. ; These rates declined steadily during the month, and at the close were 7} to 7f per cent., and per cent., respectively. This compares with a range of 8J to for 60 to 90day loans in May, and with 8 to 9 per cent for six-months’ obligation.

BROKERS’ LOANS. The Federal Reserve Bank’s reports on loans to brokers and* dealers show that the first two weeks in June the total of such loans remained stationary at 5,284,000,000 dols., which was 4,009,000 dols. below the total 'for the final week in May. For the week ended June 19, an increase of 136.000,000 dols. was shown, and this was followed by a further expansion of 122.000,000 dols'. for the week ended June 26, bringing the total up to 5,542,000,000 dols. These increases lyere partially due to heavy subscriptions to new securities by holders of . rights. The Stock Exchange tabulation covering the entire month shows a total expansion of" 406,000,000 dols., and reflects more accurately the tremendous month-end demands.

FEDERAL RESERVE STATEMENT. The combined statement of the Federal Reserve Banks for the week ended June 26, when compared with that of the closing week in May, shows a further strengthening cf the credit position when considered in the light of the tremendous requirements of the mid-year financing, .which was partiallv completed at that time. Although there was a net expansion in member bank borrowings of 28,553,000 dols., and in holdings of U.S. Government securities of about 5,000,000 dols., t' is was offset by a decrease in the holdings of acceptances from 117,919,000 dols. to 82,839,000 dols. The net increase in the amount- of reserve credit outstanding was only 3,926 000 dols., bringing the total to 1,262.428,000 ools., which is 205.000.000 dols. less than at the same time last year. The Federal Reserve ratio advanced during the month from 74.5 per cent to 75.3 per cent. lmnorts of gold during the month totalled 28,370.000 dols., and exports were 402.000,000 dols., compared with 22,393,000 dols. imported and 201,000

dols. exported in May. For the first six months of the year imports have totalled 171',127,000 dols. and exports 3,636,000 dols., a net import balance of 168,941,000 dols. This compares with an export balance of 374,900,000 do ! s. for the corresponding period of last year. . On the basis of incomplete returns for June it appears that the insolvency record for the first half of the year will show considerable improvement over the like period of 1928. Commercial failures totalled 12,165, with liabilities of 234,950.000 dols., as against .12,828 with liabilities of 251,488,406 dols. in the first six months of last year, a decrease of 5 per cent in number and 6.5 per, / pent in indebtedness.