At a comparatively early hour yesterday the March settlement of the Stock Exchange had been practically put through. A few days ago we mentioned that it was likely to be almost as large as was that of December,: but when—the transactions came to be totalled up it is believed that they were even heavier. As has been stated the easiness of money has enabled the settlement to be carried through without hitch, and so far as can be seen the speculating public are just as eagerly engaging in operations for June.
In view of the extraordinary position of cotton, which overshadows everything else, the prices which have been quoted' for local shares are justified for the immediate future, and buyers of shares at present values may expect to get 10 per cent. or over. This is all very well for the time being, but these shares are standing so very much above par that the public would do well to pause and consider whether the present movement of prices is really sound. The position may be all right for months ahead, but it is inevitable that sooner or later a reaction will set in and somebody will be very badly bitten. With prices at their present high level it is not enough to see merely a dividend of 10 per cent. or thereabouts on cotton shares.
'A settlement like that just put through showed a tendency to be-ome unwieldy. As a matter of laet it was largely a case of carrying forward, which was facilitated by the ease with which loans can be negotiated. The question is whether June will be carried through so smoothly. As a rule money is not nearly so easy in June when the export season is on, and before now we have had unpleasant experiences then. At the moment there is no sign of the speculating fever exhausting itself, for the public, as usual, is fully convinced of the favourable possibilities of the situation, an inevitable feature of a rising' market. To show—the degree of speculation taking place, one statement may be quoted that less than 10 per cent. of the dealings are for cash. The position, of course, looks rosy, because of recent dividends and those in prospect for some time to come, but as we have pointed out the future thereafter is altogether so speculative that it may well be matter for anxiety.
Text read from the printed page and cleaned; old type leaves the occasional error.