THE MONEY MARKET

Ashburton Guardian, Volume 54, Issue 91, 27 January 1934, Page 7

THE MONEY MARKET

CAPACITY iTO SHORTEN SAIL. UNDERESTIMATED BY MINISTER. THE WEEK ON ’CHANGE. I (Written for the “Guardian” by Investor.) Naturally, the trade figures for the past year, with the big excess of exports, tinned one’s thoughts to the position of the exchange purchases, and made one wonder what the floating debt of the Government will be at the close of the financial year. When the Bill providing for the purchase from the banks of surplus funds in London was before Parliament about a year ago, pne member of the Ministry said that “We might have to pay something.” We know that we shall have to pay a great deal, for the money purchased is costing us about 5 per cent., and it is earning about one per cent., and a margin like that in a matter of many millions soon mounts up. The trade figures show that exports are being well maintained and that the capacity of importers to shorten sail has been under-estimated by the Minister of Finance. Some months ago he said that these firms would have to import to replace stocks, but* there is no sign of any upward trend yet. And, with the exphange rates so heavily against them one cannot be surprised that they are keeping commitments down to the very minimum.

As I ventured to predict, the visit of the Prime Minister to Otago Central was primarily concerned with goldmining. The reports regarding areas tested by geophysical methods have been of exceptional interest, and the confidence of those in charge of the work is striking. The next step will be to confirm tlie geophysical tests by means of bores and that should not take long. And I sincerely hope that private interests will take advantage of the Prime Minister’s statement with.regard to the employment of the experts on other fields. The old methods of prospecting were both costly and uncertain, and 1 should like to see these scientific, methods tried on the reef formations in the north and on the West Coast. I wonder if, in view of these developments, we shall hear anything further regarding that scheme outlined in Christchurch some time ago, that the Government should itself develop!" a mining field and use the proceeds to reduce the National Debt?

A Light Week.

Business on ’Change this week has been exceptionally light. Price movements have been small, and, on the whole, a little down. In the Government section ipost of the dealings have been in 4 per cents. The 1940 stock sold at £lOl and £lOl ss, the 1946 to £lO3, and the 1949 at £lOl ss. The 1946 bonds also touched £lO3. During the week a prominent business man, visiting the south on 7 holiday, told mo that the 4 per cents., after deducting income tax on the present scale, gave the companies a very small return. If conditions were more promising probably much of this money would bh diverted to other channels of investment. Commercial Bank shares have been turned over at 18s 6d and 18s 7d, and the .prefs. at £9 4s and £9 4s 3d both cum div. E.S, and A.’s sold from £5 17s to £5 18s, and have sellers now at £5 17s 6d. New South Wales are a trifle easier with business from £34 17s 6d to £34 12s 6d. Unions were turned over at £lO 2s to £lO 3s, and Australasia at £l2 16s 6d, National of New Zealand firmed to BSs 6d, with further buyers at 86s. Dealings in New Zealands were from 49s 3d to 48s. and sellers offered more at the lower price. - The Insurance Group. Insurances have not been active. A.P.A. changed hands at 11s 2d, Nationals at 18s 7d, New Zealands cum div. at 57s _9d and 58s, and South British at 76s 6d. Practically all the business was in -Auckland. .Dalgetys are easier with sales from £lO 9s to £lO 7s, and the only transaction in Goldsbrough Molds. was at 35s 9d, with later sellers at 55s 6d. National Mortgage A’s sold at 635, and N.Z. Loan and Mercantile (ord. stock) at £59 2s 6d and £59 15s. Dealings in Huddart Parkers this week havo been at 33s 6d, which represents a concession on tlic part of sellers. Last week they asked 34s 3d. In coal mining issues business Included a sale of Grey Valleys at I.os, one of Westpovts at 14s 9d, and of Taupiris at 15s 3d and 15s, In the woollen section business was limited at a sale of Kaiapoi (17s paid) at 10s 9d, at which price buyers stayed in. Brewery issues are in steady demand. Carltons sold at 44s 9d, N.Z.’s at 39s 6d to 40s Id, Tiniarus at 9s 3d and Tooths at 44s 7d. This market is firm. - - Miscellaneous Section. - In the miscellaneous section Dunlops continue to be prominent. They lost much of the recent advance with business from 22s 5d to 21s 7cl, and sellers at the lower price. British Tobaccos went from 37s to 37s 6d, while Henry Jones sold at 345, Wilson Cements at 27s Bd, Kauri Timber at 16s to 16s 4d, and N.Z. Newspapers at 30s Cd. In the north Colonial Sugars sold at- £65. The big Sydney firm or Anthony Horderns have been active with sales at 18s 2d and 16s 3d. Isolated dealings have covered a fair range this week. In the mining section Gillespies Beach have been in demand with sales from Is 11-id to 2s 2d. Okaritos eased from 9s 5d to 9s. Black waters went from 34s to 35s 9d and 35s 3d, and have buyers at ,35s sd. Alexanders (13s 6d paid) realised 15s 9d, and Big Rivers had sales and sellers at lOd. King Solomons art steady at 3s 7d and 3s Bd, while Waitalius came from 6s 6d in the south to 6s 2d in Auckland, but later Christchurch quotations indicated that they were firm, with buyers at 6s 3d. Waihis have been turned over at 30s and 30s 3d, and buyers stayed in at 30s. Other sales included

Upper Sliotovcr at Is 7cl and Is 9d, N.Z. Crowns Is 7-id to 2s, BellHooper (9d paid) 7id, Maliakipawa 2d, Maercwhenua lOd ana 10id, and Mataki Is 4*d and Is sid. Electro. Zinc ords. are firm with business at 27s and 27s 3d, and Alt. Lyells went from 25s to 25s 3d, and have buyers at 25s 2d.