THE MONEY MARKET.

Ashburton Guardian, Volume 50, Issue 260, 16 August 1930, Page 4

THE MONEY MARKET.

EVENTS IN AUSTRALIA. EFFECT OF AMERICAN DROUGHT THE WEEK ON 'CHANGE. (Written for the "Guardian" by "Investor.") This is always an unsatisfactory week on 'Change. Other interests demand attention, with the result that it is difficult, it not quite impossible, to follow price movements. The only satisfactory course for those who can get into touch with brokers is to ascertain what is happening on the other side of th© Tasman., News by caole from London seems to indicate that investors have more confidence in the strength of the Australian position than have the political writers. The price of Australian stocks is said to have improved, but, on the other hand, we have had at least one leading journal asserting that the Commonwealth has been ignoring economic laws and is not inclined to face the unpleasant task of working its way back to stability. For myself, I cannot see any grounds for the criticism. The Federal Government has taken the most drastic and courageous steps to effect improvements, and the prospects are brighter. If the American disaster assumes greater proportions, then the price of wheat must go up, so that Australia may be able to market thaimillion tons carried over from last season. Then stocks of tops and yarns are said to be within reasonable limits,and the opening of the wool sales toward the end of the month may be encouraging. I have more than once drawn attention to the splendid stability of the leading banking and commercial institutions during these times of trial, and have had some experience of the remarkable recuperative powers of the Commonwealth. The price movements during the weeii have been small, and many shrewd judges are of the opinion that they will go lower. And, of course it does not always pay to wait for the lowest ebb. If one secures a holding on a satisfactory basis, nothing more should be demanded.

There are one or two aspects that should bo borne in mind if, and when, a marked improvement is recorded. It would not be wise, in my opinion, to be influenced by fluctuations. When prices begin to climb it must be remembered that there will be many people unable to resist the temptation to take their profits, and that always has an. unsettling influence. Another tiling is that, after such a fall as that experienced, some people wanting to "play safe" show a preference for preference shares, and as Government issues mature it is not unlikely, some people think, that many people will invest in preference issues. If one excludes the banking group there has been so little business passing that comment is unnecessary. There has been only one sale reported in the Government section this week, to time of writing, 4£ per cent, ins.ribeds, 1939, changing hands at £99 15s. There are buyers of practically ail the tax-free issues at £99 12s 6d. The Banking Section.

In the banking section there has been more than usual activity in New South Wales. Prices have eased from £36 15s to £36 ss, cum div., of 10s. Dealings in Commercials have been at 20s 3d and 20s 4d, with a sale of the prefs. at £6 Bs. A.B.C.'s were turned over at 225, Commercials of Sydney at £2O 7s 6d, and E.S. and A.'s at £5 16s 6d and £5 17s, and Unions at from £lO 14s to £lO 13s. Taken throughout, the margin between quotations shows little difference.

Business in New Zealands has been iput through at from 55s 9d to 565, with more available at the higher figure. The only sale of Nationals was at £5 14s 6d, and quotations are now Is either way. In the insurance group dealings have been few. Nationals had a sale at 14s, and New Zealands two at 41s 9d, while 57s was paid for South British. After an early sale at £lO 2s 6d, Dalgetys eased -to sellers at £lO, probably because of the lower quote cabled from London. If one had credit available in London these shares would be tempting. Buyers moved up 2d to 27s 4d for Goldsbrough Morts, but sellers wanted 27s 9d. Auckland reported a sale of New Zealand Loan and Mercantile ordinary stock at £B9, a substantial easing. Shipping issues have been quite neglected, and the only sale in woolleus was of Kaiapois at 9s 7d. Coals also have been out of the picture, with only one sale, Taupiri prefs. at 235. Quotations in this group are firm.

Most Exchanges have had business in New Zealand Breweries, prices ranging from 50s 9d to 51s, but the turnover has been comparatively light. Tooths were released at 28s lOd and 28s 9d ; and Oarltons at 30s 3d.

The miscellaneous group has been strangely inactive. Christchurch has drawn a blank to time of writing, and dealings elsewhere have been few. British Tobaccos have had a sale at 37s 9d, with later sellers at 37s 6d. Wilson Cements were turned over at 40s 6d and Kauri Timbers at 13s. "With so few dealings it is useless to speak of movements. The Mining Division. Mount Lyells continue to fluctuate. Thev have been dealt in at from 22s 6d to 22s 4d in Christchurch and at from 22s 3d to 22s 7d in Wellington, but as sellers stayed in at 22s 4d it would seem that the Christchurch business' was closer to Australian prices. Waihis are firm, with business at 14s and 14s 2d. Duhedin reported sales of Okaritos at 6s lid and 6s lOd and a sale of Mahakipawas at 2d. The latter were sold in Christchurch at 2Jd. The onlyi other business has been in Grand Junctions at 2s Id and 2s. The assays of the lode in the Junction property are encouraging.