THE STOCK EXCHANGE

Sun (Auckland), Volume II, Issue 609, 11 March 1929, Page 10

THE STOCK EXCHANGE

SERVICE TO COMMUNITY BAROMETER OF BUSINESS ‘ By ‘‘Noon Call.’’ Since earliest times there have ; been exchanges, and always the business transacted there has reflected the general prosperity or otherwise of the people. To-day, the Stock Exchange is literally a “barometer of future business conditions.” The first exchanges were very simple affairs, yet our modern institutions can be traced back to the time when Jones met Brown in an open space and bartered goods. As the volume of trade increased, special trade centres were developed and regulations governing the methods ol trading were formulated for the protection of both buyer and seller. It was from these early markets that the Stock Exchange evolved. London had its Stock Exchange for many years prior to 1773, but it was not till that year that the institution was first known as the “Stock Exchange.” The now famous New York Stock Exchange started from, a group of 24 men, who met under an old tree in Lower Wall Street during the summer of 1792. To-day, in all parts of the world, Stock Exchanges render an essential service to the community. Firstly, they offer an ever-available and reasonably safe avenue for the investor who desires to place his savings to the best advantage. Acting under the advice of an established broker, risk of loss is reduced to a minimum, and the needs of the small as well as the big investor are provided for. This latter truth is not generally recognised, and there is too big a tendency to hold the view that the ’Change is only for the speculator or the capitalist. One of the greatest services rendered by the ’Change is the mobility it gives to stocks and shares. A holder of listed securities can practically always, at a moment’s notice, learn through a broker the market price of his holdings—the price at which he can actually dispose of them. Bound listed securities are as much cash as money placed at call in the savings bank. They can, to all intents | and purposes, be converted into cash j at a moment’s notice. In addition, sound stocks have a mortgagabl© value, and the banker is naturally more likely to lend freely on securities in which transactions are publicly recorded. Despite the foregoing it must not be understood that because a security is listed the Exchange guarantees its merits, however. Such would not be practicable. What the Exchange docs do is to subject the company’s affairs to a close examination at the time of application, with a view to ascertaining whether it is being run in the best interests of shareholders. Listed companies are also required to keep shareholders informed as to their financial progress through the issue of balance sheets. The ’Change cannot be held responsible for anything which happens subsequently. Stock market quotations represent the combined judgment of trained minds, bankers and brokers, speculators and investors in all parts who are constantly looking ahead seeking to spy out future business and financial conditions. If they look for an improvement In business they tend to increase the purchases and buying limits; if they fear a depression, they are inclined to sell. This factor represents one of the greatest services the Stock Exchange provides in giving the trained observer a daily register of business and financial conditions with an accurate forecast as to the future. It is said of the London and New York Stock Exchanges that every business depression England and the U.S.A. have had has been indicated in Stock Exchange movements anything from six months to two years in advance. The same applies in a lesser degree in the smaller ’Changes. The importance of this discounting service to the business man should not be overlooked. To the keen student of financial and industrial affairs Stock Exchange movements present a fascinating study—a study which is too important for the wide-awake business man to overlook. LONDON MEAT MARKET PRICES AT SMITHFIELD The New Zealand Meat Producers’ Board has received the following cablegram from its London office, dated March S, advising Smithfield delivered prices, averaged for the week ended that date, as follows: New* Zealand Wethers and Maidens.— Canterbury quality, selected brands, 561 b and under, 7d a lb: 571 b to 641 b, 6 3-Sd; 651 bto 721 b, 54d. Other brands, 561 b and under, 62d; 571 bto 641 b, 64d; 651 bto 741 b, 5 l-Bd. New Zealand Ewes.—64lb and under, 43d. New Zealand Lambs —Canterbury quality, 361 b and under, 9 3-Sd; 371 b to 421 b, 9d; 431 b to 501 b, 8 7-Sd; seconds, 82d. Selected brands, 361 b and under, 9Jd; 371 b to 421 b, 9d. Other brands, first quality, 361 b and under, 9d; 371 bto 421 b, B|d; second quality, 301 b to 321 b, average, S 5-Sd. Australian Lambs. —Victorian, first quality, 361 b and under, S4d; 371 b to 421 b, Sd. Argentine Lambs. —First quality, 361 b and under, 7 7-8 d; 371 b to 421 b, 7.\. New Zealand Beef.—Ox hinds, sd; cow fores, 33d; cow hinds, 44. Argentine Chilled Beef.—Ox fores, 4 3-Sd; hinds, 6d. New Zealand Frozen Pork. —Porkers, 601 bto 801 b, 8 Jd; 811 bto 991 b, 8d; 1001 b to 1201 b, 7£d; baconers, 1211 b to 1801 b, 73d. * Mutton Market.—The demand for wethers is quiet and trade is slow\ especially for heavy-weights. Ewes are meeting with better inquiry. Beef Market.—Nominal prices. Stocks are light. New Zealand Porker Pigs.—Good steady trade. New Zealand Baconer Pigs.—The mar- | ket is firm, with better prices. MATAMATA JERSEY CLUB (From Our Own Correspondent) MATAMATA, Saturday. A general meeting of the Matamata Jersey Club was held in the Kensington Rooms last evening. Mr. 11. Lewis presided. The following remits are to be sent to the Matamata A. and P. Association : In the event of any person or society subsidising the A. and P. Association prizemoney to, at least, an equal amount. Full prizemoney will be paid out irrespective of number of entries or other conditions. The A. and P. Association be asked to provide for a reserve championship in the male and female Jersey classes. The association be requested to allow’ the Jersey Club to appoint an official Jersey steward to assist the other stewards in the Jersey sections. All cattle to have labels on bearing catalogue number, when entering the The Jersey ClH!®» be allowed to nominate three judg#K from the official list, the A. and P. Association to select one of the three. During the evening Mr. Lewis presented the Matamata Jersey Club's challenge cup for the best pair of yearling heifers, owned by a breeder within 15 miles of Matamata. to Mr. A. Brooke, Okauia.