A. NOTE OF OPTIMISM

Sun (Auckland), Volume I, Issue 227, 14 December 1927, Page 8

A. NOTE OF OPTIMISM

THERE was a refreshing note of optimism in the address given by Mr. G. C. Creagh, chairman of the Auckland Stock Exchange, at the annual meeting of that, institution yesterday. Mr. Creagh expressed gratification that, despite New Zealand having passed through a time of financial stringency, the Exchange, as a body, had experienced a very satisfactory year. This, in the opinion of Mr. Creagh, was indicative of the increasing interest of the public in the skaremarket as a more profitable method of employing its money than lending it. on mortgage or putting it in banks. But it would be presenting it in a better way to suggest that the increasing interest in the sharemarket showed that the financial stringency was over, and that the public was now willing to invest in shares because it had the money to do so, and was no longer influenced by the timidity which accompanies bad business times to seek “gilt-edged” securities as moneylenders or bank depositors. But though Mr. Creagh was optimistic, he issued a warning for which the public should be grateful—a warning against investment in companies which issued glowing prospectuses solely on the strength of the representations made by promoters and salesmen. Even a glowing prospectus might be a true one, and a salesman might be quite honest, yet the public will do well not to risk being gobbled by the sharks of good times, but to take Mr. Creagh’s advice and, before investing, consult a member of a recognised stock exchange. “Business conditions should be better in 1928 than those obtaining this year, and possibly better than in any year since the Great War,” concluded the chairman of the Stock Exchange in his address. It is a heartening view expressed by a man whose opinion is worth while in financial circles, and it should go far to confound the croaking pessimists who are largely to blame for business inactivity.