THE MONEY MARKET

Ashburton Guardian, Volume 53, Issue 204, 10 June 1933, Page 7

THE MONEY MARKET

WORLD ECONOMIC ISSUES.

a Substantial turnover.

THE WEEK ON ’CHANGE

(Written for the “Guardian” by “Investor.”)

When the history of this depression comes ,to be written the historian will have to devote a volume to the schemes proposed to overcome the difficulties. This week we have had Auckland proposing a compulsory loan at 3 per cent, others the transferrence of most rural rates to other shoulders, and that interest on mortgages on rural lands should be adjusted on the rise and fall of produce prices at a certain standard. Mr Coates saw in the Auckland plan a likeness to Mr J. M. Keynes’s ambitious scheme for Great Britain. That can be outlined as follows: “A national loan as a link in the transformation of the community’s surplus resources, which will otherwise be wasted, into useful capital assets.” There must he, it will he noted, surplus resources, and the goal is useful capital assets. Now, the Auckland proposals, taken generally, would not fit that mould, and apparently were never intended, to do so. As for the moving scale of interest on rural mortgages, a Taranaki- proposal, it raises the question of finding investors willing to lend on that basis. Would it not 'make urban mortgages the more attractive? In approaching the study of these plans it is necessary to go beyond the first stage. A compulsory loan might be pushed through, but,in the years to come we shall need to obtain further capital and where will that bo (Obtained? If money can earn up to per cent, in Australia, will not capital move there ? Most of the proposals put forward are not solutions, but adjustments, most of • them designed to lighten the burden on their advocates by adding to that of some other section, or of the people generally. Price movements on ’Change this week have not been as marked as in the preceding period, but the markets are firm, and the turnover has been; substantial. | _ In the Government section the majority of the sales have been below £IOO 10s, and the 31 per cent, inscribed 1938-43 changed hands at £99 15s.

The Banking Group. Banks have had. steady attention, and 'the trend has been upwards. Unions went from £8 4s to £8 7s, and buyers at £8 5s are 2s 6d up for the week. Commercial of Sydney went from £l6 10s to £l7 2s 6d, but later eased ss. Commercials have sold at 15s 8d and 15s 9d, and E.Sv and A’s at £5 and £5 Is. The £5 paid issue of National of Australasia had sales and buyers at £6 2s 6d, and offers of £l2 2s 6d for the others were without result. There has been much more activity in the D mortgage shares of Bank of New Zealand this week, with sales from 30s 9d to 31s 3d, while the ordinary issue touched 47s cum div. Nationals of New Zealand went from 74s 6d.to 75s 3d. New Zealand insurances have been prominent, and the price hardened from 49s 6d to 50s. Nationals were dealt in at 16s sd, and South British at 66s and 66s 6d. Queenslands realised 52s in the north.

Loan and agencies are firmer. Goldsbrougli Morts wont from 25s Btl to 26s 3d, and there are buyers at 265. New Zealand Guarantees sold at 5s 6d and 5s 9d', and buyers went to £8 2s 6d for Dalgetys, without response from sellers.

Dealings in shipping shares have been limited to Huddart Parkers at 30s 3d. Westport Coals have sold from 11s 9d to 11s 6d, and more were offered at the lower price.

Brewery Shares in Demand. Brewery shares are in steady demand. New Zealand’s cum div. w.ent from 31s 4d to 32s 3d, and buyers stayed in at 325, against 30s 9d last week. Staples brought 26s and 26s 3d, and Tooths 38s and 38s 3d, but later were available at 37s 9d. The advance of New Zealand Refrigeratings continues. This week the paid shares sold at 14s 7d, with further buyers, and the partly pa ids have sold at os 5d and ss. 6d. The section, taken as a whole, is very firm. There has been nothing of outstanding interest in the miscellaneous section. British Tobaccos cum div. were turned over at 35s and 35s Bd. Colonial Sugars are easier, with business at £59 to !eSB 10s, and N.Z. Drugs also eased with sales at 64s 9d and 64s 6d. Milson Cements cum div. realised 31s and 31s 6d, and ex div. 30s 7d. Dunlop Rubbers hardened to business at 18s lOd and Dominion Fertilisers had sales at 11s and lls Bd. N.Z. Papei Mills continue to attract attention, sales going through at 2'6s 6d to 2re.

The Mining Division. Mining is the chief interest at the present time, and dealings cover a good range. The chief advance has been in Waitahus (4s 6d paid). Business commenced at Cs lid, and then there was a speedy rise to 7s lOd. Buyers stayed in at 7s Bd, against 6s 3d last week. Okaritos are steady, with sales at lls 2d and lls Id cum div., and Waihis have been turned over at 22s Id and 22s 2d. Nokomais ■have recovered some of the lost ground, with sales from 4s to 4s 7d, and buyers stayed in at 4s 6d, against 3s lOd a week ago. Lawson’s Flats have had dealings at Is 6d to Is 7d and Is 6d, and King Solomons at Is Bd. Gillespie’s Beach brought Is 6d to Is 7-Jd, and Freshfords Is and lid. Big Rivers have not been so active, but sales have been made at is s)d and Is sd, while Rlackwaters sold at 22s 9d and 22s 6d. Consolidateds realised lls Id in the north, and there lias been business in Paddy’s Points at 5s 7d and 5s 6d. Mt. Lvells went from 22s to 22s lOd and 22s Bd, while Electro Zinc ords. sold at 19s lid, and the prefs. at 31s 6d to 31s 9d.

By this time next week the great International Economic Conference will be in session, and much will de-

pend on the outcome of the deliberations. The ground has been fairly well prepared, and Great Britain will lead a solid sterling bloc. One could wisli that the intentions of the strong French delegation were better known. They exercise a powerful influence, but the interdependence of the nations has been clearly shown, and it will only bo by co-operation that progress wili be possible. It is not only in time of war that the nations must take their courage in their hands, and surely this is the time for the whole line to advance.