THE MONEY MARKET

Ashburton Guardian, Volume 50, Issue 155, 12 April 1930, Page 10

THE MONEY MARKET

decidedly quiet tone. INFLUENCE FROM AUSTRALIA. THE WEEK ON ’CHANGE. (Written for the “Guardian” by “Investor.”)

As was to be expected the commencement of the new financial yeai finds the money and stock markets decidedly quiet. The marked influence played by the Australian! markets on conditions ruling here has been amply demonstrated, but there is no reason for pessimism. Our neighbours have adopted truly heroic measures in order to improve the position, and it looks as though the Commonwealth will pass through this crisis with, credit Hie country is meeting the financial strain, in a remarkable manner. Not long ago doubts were entertained regarding the ability of the country to renew the £60,000,000 of loans falling due m December. The fact is that the Federal Government has practically completed the big transaction already, and the .prospect of converting the £4O 000,000 of maturing State loans is now’ held to be good. If that is done it will mean that Australia will have converted about £110,000,000 in a year, and that would be no mean record. Another cheering factor is the statement that the wool clip will be cleaied this season, so that there will he no heavy carry-over to depress puces next season The drastic steps taken to restore the balance of trade, while undoubtedly, they will result in some difficulties, should have a steadying effect. There can) be no doubt that the Australians have set about an unpleasant task with courage and the outcome will be good In the meantime money is dear and that fact may continue to Affect the Dominion. It will be interesting to see how we have come through the financial year. A surplus in the next Budget would place the Dominion in a wonderfully attractive light, and would contrast strongly with the position on the other side or the Tasman. It would not matter it the amount were small, indeed very small, just so long as there is a baJ ance on the right side. Not a Wide Range of Business.

Operations on the Stock Exchanges have not covered' a very wide range this week. The banks and breweries have accounted for the greater pait of the ■ business, and prices seem fairly stable on the lower basis ruling o 1& In the Government section most of the sales effected have been of tax-free issues. The inscribeds 4i per cent., 1938 and 1939, have been sold at from £B7 7s 6d to £97 12s 6d. The drop from prices ruling at the close of business last year, when some of these issues carried a small premium, may be due, in part, to the demand for money compelling holders to sell; but, as I ha.ve pointed out on occasion, there is a possibility that the easing reflects the opinions of large holdeis that the national finances will enable the .Government to get through the current year without adding to the burden of taxation. The only sale of „5>- per cent, was of 1936 inscribeds at Commercials have been the most active in the banking group, Mue to operations in Christchurch. The price hS -one from 21s 9d to 22s l*d, with buyers staying m >at 2ls lid and sellers, at 225. Lnions, after business at £l2 S, had sellers at £l2, hut- buyers dropped their offer by 3s to £ll 18s. New South Wales have been turned over at from £39 to £39 ss, and more could be placed at the higher figuie. Australasias had a sale and buyers at £l2 os, and A.B.C. s business at 6d and 255. For E.S. and A. s £6 Hs 6d has been the ruling price, .and £ls 2s was paid for the £lO issue of National of Australasias. New Zealands are firm cum div. There have been sales at from oßs bd to 59s 6d with further buyers at o9s 3d against 57s 6d last Saturday. Nationals are also, firmer Transactions have been reported at £6 os and insurance section has been neelected. The only sale to the time of has been of South British at 625. Quotations have been few, thus making it impossible to follow the trend of prices.

Position in Other Groups. Price movements in the loan and agency group have been small. Dalhad sales at £ll Js and 111 7s 6d, and Goldsbrough Morts have been dealt in at 31s 6d and 31s 9d. There have been a iew sales re corded in the shipping section. JAucldart Parkers were sold at 38s and the prets. at l?s lid, while 20s 6d was paid for Union prets. w The business passing in the brewery group has been almost entirely m New Sealands. Early sales were 50s 3d, but the price has since hardened to 51s 9d and 525. . Buyers at 51s SW are Is 6di above their offer of a week ago. Other quotations have moved little, T>ut have been put aside. It is held in some quarters that themarket for New Zealands, on the new basis, opened well below the real value, and it has been stated in Auckland that 56s would be nearer the mark. The only dealings in the woollen group have been of'the Kaiapoi cents. They have changed hands at 3s 9d 3s 9d, and buyers liaye advanced Is 11s for the fully paids, but without business resulting. British In the miscellaneous section Bntis Tobaccos have been the most active. In Christchurch all the dealings have been at 2d and 40s 3d, but the other Exchanges have liad s fj les a l t c 0 “ 40s 6d to 40s. For a small paicei or Colonial Sugars £43 7s 6fl pard^ Drugs have been made at 695, while Wilson Cements have been turned ovei at 39s and 39s 3d. The Mining Section. The'mining group has had attention. Mount Lye ls are witk sales at 34s 3d and 34s id. roi YVaiMS 14s has been paid on several The Electrolytic Zinc oids. nd '? changed hands at 26s 9d and 275, and the nrefs. at from 2/s 6a to 2<ss. U Altogether it has been a quiet week, but there is a good tone in the m kets People, fortunately, are not becoming depressed, and recogmse that these clouds will pass. Th ® { on J“ . is necessary, especially when one is considering trade in primary products, ft is necessary to average pnces oyei a reasonable period m order to get a good basis for comparison and on that basis the Dominion, is quite‘Stable.