THE MONEY MARKET

Ashburton Guardian, Volume 53, Issue 288, 16 September 1933, Page 7

THE MONEY MARKET

A FEELING OF CONFIDENCE. NEED FOR A LONG VIEW. THE WEEK ON 'CHANGE. (Written for the "Guardian" by Investor.) Events have conspired to create a feeling of confidence in t.he community, and that in itself, is a welcome change. The splendid wool sales in Australia, the confident predictions of a strong market when the London series commence next week, the return of butter to the 100 s level, improved prices for pelts and skins, and the general expectation that prices for the new season's lamb will be well above last year's have all made us see tilings with a more rosy jtint. But the man who learns by experience, or preferably by the experience of others, knows that the stage of recovery must be gradual. There are the accumulated liabilities that must be wiped off, and while, comparatively, they are not heavy in New Zealand, still they do represent a large sum. The outstanding lesson of this prolonged depression has been the necessity for State and individual reducing liabilities. Those who have deferred payments due to them must not jump to the conclusion that as soon as the market prices rise they will be paid in full. There will still bo need for the long view, and stability will come surely if tho discharge of these liabilities is spread over a reasonable period. In some respects I am a little anxious as to the attitude of many when, at last, we emerge from these trying years. Care must be exercised. It is one thing to make a mistake, but quite another to repeat it. Markets Very Firm. The markets have reflected the change in the outlook and are very firm. Business on 'Change has been steady and of good volume, and many investors have been cheered by seeing their scrip advance to higher price levels.

In the Government section the 3J p.o stock 1939-43 touched £lO2. The 4 pelcent inscribed 1949 and 1940 and also the 1940 bonds went to £lOl 5s and the 1949 bonds sold at £lOl 12s 6d. In the banking section thp advance of Unions has been noted. The first sale was at £9 16s, and then the price rose to £lO, and sellers are asking £lO ss. Commercials opened at 16s 2d, and have since sold to 16s 6d, buyers staying in at 16s 7d. Commercial of Sydney, after sales at £l7 15s and £l7 16s had buyers at £l7 18s, while E.'S. and A.'s, which were available at £s"Bs 6d last week, sold at £5 10s 5d and £5 lis 6d this week. National of Australasia (£lO paid) sold at £l3 2s and £l3 Is 6d, but the £5 paids went from £6 6s 6d to £6 10s. New South Wales have had business from £32 5s to £32 10s and buyers wanted more at the higher price. Australasias cum div. realised £l3. National of New Zealand are isteady with business at 82s Gd and 83s, but New Zealands eased a little from 49s 3d to 48s Ud. Business in insurances has included A.P.A.'s at lis Bd, Nationals 18s 3d, New Zealands 545, South British 73s 6d, and Standards at 60s 3d. The whole section is very firm indeed. Loan and Agencies. Loan and agencies continue to attract attention. Dalgetys had sales at £lO 10s and £lO 12s and Goldsbrough Morts from 29s to 29s Gd. New Zealand Guarantees have firmed steadily of late. This week business was from 7s 3d to 7s lid and buyers stayed in at 7s 9d. New Zealand Loan and Mercantile ord. stock, has also firmed, with business at £52 5s and £55. Only limited dealings have been reported in coal mining shares, the sales including Westports at 13s and 12s lOd. In the woollen section there have been sales of Kaiapois (17s Gd paid) at 7s 9d, with buyers at 7s lOd. New. Zealand Breweries have not held all the recent advance. This week the price eased from 38s 8d to 38s, and more were offered at 38s 2d, against 38s lid last week. Staples are firm with several sales at 28s 6d to 29s and 28s Bd. Timarus (7s Gd) paid sold at 6s Ud and 7s, and have buyers at 6s lOd. Tooths after business at 38s 2d sold at 395. British Tobaccos cum div.. have hardened from 35s to 36s being reported. Colonial Sugars went from £SB 12s 6d to £59 and have buyers at' the higher price. Wilson Cements have had dealings at 36s and 35s 6d. New Zealand Paper Mills isold at 28s and Milburn Limes at 30s Gd and 30s.

Meat company shares are firm. Gears have changed hands at 33s to 33s 6d. New Zealand Rofrigratings paid sold at 18s 9d and 19s 3d and the partly .paids at 8s lid to 9s 3d, with, further buyers at 9s 3d.

Activity in Mining. The mining section is very active, and dealings have been substantial. Alexanders (13s 6d paid cum diy.) are steady at 19s and 19s 6d, Big Rivers have been sold at Is 7Ad and Is Sd, in Christchurch alone 5500 shares being turned over. In Auckland Consolidateds brought 17s Od. Okaritos cum div., went from 12s 3d to 12s 6d and buyers at 12s skl are 4d up for the week. Gillespie's Beach have sold at 2s 2Jd and 2s 3d, and Waitahus from 7s 4d to 7s 7d. Lawson's Flats went, from 7£d to B£d and then down to Gd with further sellers. The Murchison enterprise, Mataki, sold from 2s 6d to 2s 4d and 2s sd. Bell Hoopers have been prominent with business from lid to Is Id. The company is concentrating on: development work. BellKilgours went from Is B£d to Is 7-kl. and Is Bd, and Central jShotovers had a :sale and sellers at lid. Freshfords realised 9d and have buyers at 9sd, and Kildares sold at 2s sd. King Solomons have.been well to the fore. Cum div. they went from 2s lid to 3s lOd, and have buyers at 3s 9d. Nokomais ie-

mained at 3s OJd to 3s 2d and 3s Id. In the northern mining ventures Waihis came from 27s 8d to 25s 6d cum div. Grand Junctions have had business at 4s 3d, and Golden Dawns from 2s lOd to 2s 7-id. Tho little W r est Coast company Golden Sands moved up 4to 3s 6d and 3s 7£d this week. Mount Lvells are steady with business from 21s' lOd to 22s 2d. Electro. Zino ord. sold at 23s 3d and the prefs., cum div. at 33s 5d to 33s 7d. Many companies are pushing ahead with the preliminary work, and, as ever, there is plenty of confidence as to the results. Gold mining, is one of our really active industries.