THE MONEY MARKET.

Ashburton Guardian, Volume 50, Issue 83, 18 January 1930, Page 4

THE MONEY MARKET.

THE LOWER PRICE LEVELS

LESSENED RETURNS EXPECTED.

THE WEEK ON 'CHANGE

(Written for the "Guardian" by

"INVE8TOB.")

It has been a quiet week on 'Change, and the most active market, that of Christchurch, has had a very limited turnover. As is usual at times Tike these, the tendency is for business to concentrate on the strongest issues, and,.of course, to-day the buyer hopes for other benefits than a relatively higher yield. It is not a difficult matter to see why those engaged in business anticipate a reduced profit. Take the loan and agency firms. The lower level of prices will* affect both them and their clients," and not only because of the lower returns that may be obtained. Many of these firms carry large stocks of the things required by tlie men on the laiid, and the reduced purchasing power probably will be reflected in a reduced turnover in these trading departments. Many people point to the increased advances of the banks, and, admittedly, that means bigger profits in that respect; but, on the other hand, the lower prices being paid for some of the chief items of export will reduce the earnings from exchange,, and that is- no inconsiderable item in the banking figures. The latest banking averages, for the December quarter, showed once again that in the Dominion the bulk of the financing is done by means of overdraft, and little by the discounting of hills. ' Advances have increased by nearly six million sterling, when compared with the total a year ago, but bills discounted ." have declined nearly £IOO,OOO in the same period. The returns, by the way, disclosed a posi-tion-that can he,said to be satisfactory, the point to be borne in mind being that during the current quarter the excess of exports' over imports will not be anything like that recorded last year, wheu.it exceeded £12,000,000. Most of the Government issues snow little change. The sellers of the taxfrees are asking £IOO, and for the 53 per cent, issues buyers are quoting a sum that, wijjh charges, would bring them to about par. The 4$ per cent, bonds, 1938, have changed hands at £99 15s, and the,-5} per cent, bonds, 1933, at J 299 10s. Quotations hav* been limited. The Banking Group. In the banking group Commercials have been the most prominent, although the dealings have been by no means heavy. The price sagged a little, dealings opening at 25s 3d and closing at 24s lid and 24s 9d. The ance of the usual rates for the interim dividend did not aid the market at all. The shares are available at 24s lOd cum div., which brings the price down to an attractive level. Next in probably has been E.S. and A. Here the price has cased from £6 19s to £6 16s (id. A year ago the shares were changing .hands at £8 16. 564 New South Wales have hardened, there being sales at £4l and £4l ss. Commercial of Svdneys have been turned over at £23 15s, and the £5 paid issue of National of Australasias at £7 18s and £7 10s. The last transaction has not yet been confirmed by mail. Unions cum div. are firmer. There have been sales at £l2, and an_ additional shilling was given for a parcel on the Melbourne register. - This week £6 10s has been the ruling price for Nationals of New Zealand, and the only transaction in New Zealand* to time of writing was at 58s, at which price more were available^

The insurance group remains inactive. Auckland lias had a few sales, including New Zealands cum div. at 44s 6d, and South British at Cls 6d and 61s. . . Loan and agency and shipping issues have been 'quite neglected. Prices quoted for the former have receded, sellers of Dalgetys coming from £l2 15s U> £l2 10s, and of Goldsbrough Morts to 35s Qd. It must ba some tim£ since the group failed to record business. It would not be correct to report the brewery group as being active, but it is firm.' This week New Zealand Breweries have changed hands at 88s 6d and 88s, with further buyers at 88s 3d, which is sixpence up on last Saturday. For Staples 55s 3d and 55s 9d have been paid. Miscellaneous Activities.

Wool and coal-mining issues have been quite out of the picttt®. tne only sale of meat company shares have been the partly-paid issue of N.Z. Refrigeratings at 4s and of Gears at 41s 6d. The annual balance-sheet of the former showed a substantial loss 1 , bur the ability to transfer £IOO,OOO toward meeting it emphasises the importance, in good years, of making ample provision for the lean ones. Since the issue of the balance-sheet the shares have hardened, buyers now offering 4s 7d for the partlv-paids and lis 4d for the. others. British Tobaccos have been the most active in the miscellaneous section. The prices have been from 45s to 44s 9(1, with later sellers at 44s Sd. Then there has been steady business in Kauri Timbers at from 15s lOd to 16s. The profits of this company have shown an advance in the last year. For Wilson Cements 40s 6d and 40s 9d have been paid, and a parcel or N.Z. Drugs changed hands at 73s 6d. Reports of increasing signs of oil, ai Morere have probably accounted for the sales of Taranaki Oils. The price lias eased from 6s 6d to 5s lOd, but let us hope that the boring is a success. It would provide a needed fillip. Mount Lyells have led the way in the mining grouo. that is, numerically. Auckland had at 38s 3d and 37s 6d and Christchurch business at from 37s 3d- to 36s 9d. There have been few sales apart from these. In the north, Waihi changed hands at 13s 9d. while Dunedin had a sale of.ißig Beach at 5s 9d, and Christchurch one of Mahakipawas at 4d.