THE MONEY MARKET

Ashburton Guardian, Volume 53, Issue 210, 17 June 1933, Page 7

THE MONEY MARKET

WORLD ECONOMIC POSITION.

PROBLEMS FOR THE CONFERENCE . THE WEEK ON 'CHANGE. (Written for the "Guardian" by "Investor.") The great Economic Conference has opened, and, unfortunately, the war debt issue competed with it for public interest. Personally I had expected that President Roosevelt would, on the eve of the conference, make some more or less dramatic statement regarding the debts and thus have given the international gathering a good start. Incidentally such a course would have placed the American delegation in. a very strong position, with no small measure of initiative in its control. As things are the British representatives appear to have stated the position with admirable clarity. The British statesmen do this sort of thing wonderfully well. The latest dispatch to Washington regarding war debt's is an admirable summary, and should strengthen the hands of the President if he has to go over the head of Congress and make Ins appeal for support direct to the people. One can see. whole series of problems that will prove knotty. If tariffs come down, then how about the competition of Japan with, girl labour costing about 8d per day of ten or eleven hours? If most-favoured-nation policy is attacked, then where does the Ottawa Agreement stand? If quotas go, where dees the New Zealand farmer see light? And yet action is imperative. The great danger is the possibility of nations competing in depreciating their currency so as to get some export trade, and perhaps greater still would be the demoralising psychological effect of failure. The compelling power of hard facts is the thing on which we must place our confidence. One is tempted to analyse the statement made by the Minister of Finance regarding our budgetary position, but it is hardly my sphere. Nominally we balanced the national accounts last year, but to do so we had to realise £2,500,000 by disposing of reserves, and bring in some of the funds obtained by exchange purchases. . As a matter of fact, wo ended the year with Treasury bills outstanding far in excess of the balances in the Consolidated Fund. It has been an active week on 'Change, and prices generally are very firm. The slight hesitancy reported from Sydney in mid-week had no marked effect here, and at present levels the return to investors is often very small. The anticipation is, of course, that there will he an increase in market prices for the more speculative, and prospects of splendid returns for those who seek investments, when dividends are on a larger basis.

The movements in Government stocks have been small, really, in most cases being about the additional accrued interest. The 3} per cent, issues have sold at par and the 4 per cents to £IOO 10s.

The Banking Group. Commercials have been active in the ranking group, and prices went from ios 7d to IBs id, with buyers now at 16s. For the»prefs. prices moved from £8 17s to £8 19s. Commercials of Sydney have had several sales at £l6 19s and £l6 18s, and most of E.S. and A.'s have heen at £5. The £lO paids of National of Australasia touched £l2 7s 6d, and offers at £6 10s tor the others were ignored. Isew South Wales went from £3l 10s to £32 ss, and then to £32. Unions are in steady demand and prices rose from- £8 5s to £8 Bs, with later buyers at £8 10s. New Zealands are firm at 47s to 47s 9d cum div., and the D mortgage shares are in keen demand at 30s lid to 31s 3d. ' i Insurances keep well to the fore. This week South British touched 68s, Nationals went from 16s 5d to 16s lid, and N.Z.'s have changed hands, at 49s 5d and 49s 6d. Loan and agencies improved when wool prices rose. s Dalgetys sold at £8 15s, and holders are asking £lO. i Goldsbrough Morts moved from 245. lid to 26s 9d, and buyers at 26s 7d are Is 5d up for the week. N.Z. Refrigerating issues have been very prominent, with, heavy business. The paids went from 14s 9d to 15s, and the partly paids from 5s 6d to 6s 3d. Oyer 7000 shares sold in Christchurch alone.

Business in coals has been limited to Westports at lis 9d to lis lid, while woollens and shipping issues have been inactive.

Brewery shares are firm. N.Z.'s cum div. sold "from 32s to 33s Id, and buyers at 32s lid are Is up for the week. Staples had business and buyers at 26s 3d, Tooheys realised 23s 7d, and Tooths 37s 9d.

The miscellaneous section has not been given, great attention. Colonial Sugars eased from £SB 10s to £SB, and have since been offered at £57 17s 6d. British Tobaccos cum div. have sold at 35s 3d and 35s 4d, and Dun lop Rubbers at 18s 6d .and 18s 9d. Wilson Cements Avent from 31s to 31s 9d. N.Z. Paper Mills brought 275, and N.Z. Newspapers 25s to 25s Gd. Dominion Fertilisers sold in Dunedin at Us 9d and 12s, and N.Z. Fertilisers brought 15s 3d in the north.

The Mining; Section. In the mining section Blackwaters scored a rise, from 23s to 23s 7d, and buyers at 23s 8d against 22s 9d last week. Big Pavers recovered with business at Is 6d and Is 7d. Froshfords moved up to sales at Is and Is 3d. They were offered at lOid last week. King Solomons are quiet at Is 7J-d and Is Bd, but Lawson's Flats, with operations now commenced, went from Is 6d to Is B|d. Waitahus eased a little sales going through from 7s 8d to 7s 4d, but Nokomais were steady with business round about 4s 9d and 4s lOd. Okaritos cum div. have had sales

at lis 2d to lis. Waihis continue to hold public interest. They have changed hands at 22s 3d and 22s 4d, while Grand Junctions were sold at 3s 4d. The activity in the gold-mining industry is most marked. This week we have had good reports of prospecting in Otago, and of a reef formation being struck at Tapu, near Thames. There are several big undertakings that are nearing' either a first wash-up or the beginning of mining operations, while on many fields preparatory work is being pushed ahead. It all helps to provide employment, for mining plant lias to lie manufactured and timber provided. Mining is, at the present time, our most energetic industry.