FLOOD OF SPECULATIONS

Sun (Auckland), Volume II, Issue 491, 22 October 1928, Page 12

FLOOD OF SPECULATIONS

ISSUES IN BRITAIN “WHERE IS MONEY FROM?” | (Australian and N.Z. Press Association J Reed. 9 a.m. LONDON, Saturday. j A feature of the Stock Exchange during the last few weeks has been the wonderful strength of the purely investment sections of the market, notably gilt-edgeds, with five per cent. War Loan leading, in spite of counterattractions of a more speculative character, of which the flood of new issues continues. Every day sees the publication of seven or eight new prospectuses, mostly more or less speculative, and dealing with all sorts of commodities, ranging from gramophones to disinfectants. Most of these have been fully applied for, notably gramophone issues. This week’s public issues total just under £9,500,000, bringing the year’s aggregate to £37,195,000. Commenting on this state of affairs, the financial editor of the “Spectator points out: “During the past seven years, the capital value of 365 representative securities selected by the ‘Bankers’ Magazine’ has appreciated by no less than £1,500,000,000. Therefore it is scarcely surprising, in view of the talk of depression in certain heavy industries and the great volume of unemplovment, that the question constantly asked is. 'Where does the money come from?’ " ANGLO-PERSIAN OIL DIVIDEND OF 7| PER CENT. GOVERNMENT’S SHARE (Australian and N.Z. Press Association) Reed. 9.0 a.m. LONDON, Saturday. A considerable sensation was caused last March when the directors of the Anglo-Persian Oil Company decided not to pay an interim dividend, and to defer the question till the full year’s accounts were available. It is now announced that there will be a dividend of seven and a-half per cent, for the year, compared with 12 1 per cent, last year. This will come as a relief, for nobody had expected more than three, and there were some pessimists who expected less than that or even nothing. It is interesting to note that the British Government holds 7,500,000 shares in the Anglo-Persian, on which it will receive £562,500 in dividends. As the Government investment cost only £ 5,000,000, this is a good return. LESS WINE CONSUMED KNOCK FOR AUSTRALIAN SHARP DECLINE IN IMPORTS (Australian and N.Z. Press Association) Reed. 9 a.m. LONDON, Saturday. The wine trade discloses generally a depressed condition, and both the imports and consumption of wine lron> all sources show serious declines. This particularly applies to Australian wine, which is suffering severely from the combined effects of the reduced export bounty and the increased import duty here. In September, 1927, the imports of Australian wine amounted to <83,0Ll gallons; last month they were only 45 517. During the first nine months of 1927 imports from Australia totalled 3,127,281 gallons; in the corresponding period of 1928 they were 1,511.305 gallons. GREAT NICKEL MERGER BRITISH DEAL IN AMERICA tAustralian and N.Z. Press AssociationJ NEW YORK, Saturday. The “New York World” says Canadian and English interests are reported to have acquired control or the International Nickel Company, which probably will be merged with the Mond Nickel Company, thereby bringing about a combination which will control 90 per cent, of the world s supply of nickel. The terms of merger are said to include a cash payment of £ 1,500,000 to the Mond Company, and £3,750,000 worth of 7 per cent, preferred shares for the outstanding Mond preferred It is understood that the consolidated company will have a Canadian charter, in order to avoid being am™-, able to the Sherman antt-trust law. The price of International Nickel shares on the Stock Exchange to-day climbed to a dizsy height, and 182,500 shares changed hands at 190, representing a gain of 17 points for the day. This stock, moreover, gave an impetus to the feverishly speculative general market, on which 4,761,000,000 shares were sold, being the largest day on record. Favoured issues reached new heights, including Radio Corporation of America, which l-eached 235, "representing a gain of 20 points. HANDLING N.Z. BUTTER (Australian and N.Z. Press Association) LONDON, Saturday. The High Commissioner for New Zealand, Sir James Parr, is daily visiting a section of the Liverpool Produce Exchange, where he will shortly sign a contract for handling all New Zealand butter at one central cold store, as in London, thus facilitating distribution.