THE MONEY MARKET

Ashburton Guardian, Volume 54, Issue 191, 26 May 1934, Page 7

THE MONEY MARKET

MORTGAGES ON RURAL LANDS.

WAIHI MINING DEVELOPMENT.

THE WEEK ON ’CHANGE,

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

A tour of the North Island has leftmo Avith someAvhat conflicting impressions. In the first place the country is looking splendid with, sufficient grass to carry the stock Avell through the winter. But among the men on the land there is great uncertainty. Adversity may have its uses but uncertainty is a real handicap. The more farseeing men have kept their holdings in good order, and they. Avould reap at once any improvement in prices, but others, probably lacking the resources, have nlloAved the land to go back, and so, next season, they must face the probability of a smaller output. In the Auckland province I found a general apprehension regarding a possible quota on butter, but as it was based on speculation one could make no progress in discussing the matter. Mqrtgages form a burning question in many districts, and I notice that Avlien the Prime Minister Avas in Taranaki the farmers asked for some adjustment, not simply Avith regard to interest, but also Avith. regard to principal. More than one man, in combersation, strongly urged that the personal covenant should be excluded from mortgages, and the president of tbo Auckland executive of the Farmers’ Union has advocated adjustments “giving the same consideration to the equity of the mortgagor as to the mortgagee.” The point I stressed Avas that it Avould he a short-sighted policy to do things iioav that Avould at once block the flow of capital to rural securities. IT might be possible to ride rough shod over certain interests today, but there Avould be no further loans to-morroAV, and it is extremely., doubtful Avhether the State could fill the role of sole supplier of funds for the primary industries. Government Stocks Rise. Inquiries made in the money market shoAved that there Avem ample supplies but some difficulty in securing approved securities. One effect has been to make prices for Government issues soar. Sales have been made of 1955 issues to £IOB 10s and £IOB 12s 6d, and buyers liaVe since offered £IOB 15s. Other issues carry substantial premiums so that thei net return on the investment must he small. In Britain they are talking of money dropping to a 2£ per cent level. To what level may it drop here? Banks have had v steady attention and prices have firmed. Unions went from £9 19s 6d to £lO Is, E.S. and A.’s have been released at £5 8s and National of Australasia (£5 paid) at £6 10s cum div. New South Wales sold from £32 5s to £32, ; and. New Zealands from 51s 3d to 50s 3d. The D mortgage shares sold at 84s 9d and 35s / Insurances are very firm indeed. This week Nationals touched 20s 6d, Ncav Zealands Avent from 62s 6d to 63s 3d, ISontli British sold at 80s, Standards at 64s and Queenslands at 695. These prices represent a marked advance on those ruling a year ago. Loan and agency issues have not been active. Goldsbrough Morts wont from 32s to 32s 7d, NeAV Zealand Loan and Mercantile (or.d. stock) sold at £56 and £57 10s find N.Z. Guarantees at 4s 3d. /

Coalmining and Woollens. In coal mining shares-Westports cum div. changed hands at 17s and in Auckland Pukemiros went from 25s 3d to 26s 6d. Business in woollens lias been confined to Kaiapois. The ords. sold at 10s, the 7s paid at 3s 3d and the prefs. at 18s 3d. x ■ Breweries are in steady demand. N.Z.’s cum div. went from 42s to 42s sd, while Staples brought 27s lOd, and Timarus (7s 6d paid) had business at 6s 3d and 6s 6d. The only sale of Tooths was at 455. . ' In the miscellaneous section, Colonial Sugars finned from £64 10s to £65 ss, while Dunlop Rubbers were active at 18s 9d to 18s 7d. Wilson Cements are steady at 28s 6cl, N.Z. Paper Mills at 31s and 31s 3d, and N.Z. Newspapers at 29s 9d to 30s 3d. Dominion Fertilisers are firm, at 17s lOd and 18s cum div. and N.Z. Fertilisers went from 18s 7d to 19s. Individual sales have been numerous, indicating the growing demand. Not for a long time have many parcels of local body debs, been sold in a week. Prices are very firm indeed, especially for the various city issues. Auckland Harbour Board sold with a premium of £7 15s.

The Mining Section. The mining section, while active, is irregular. The most marked drop was of Moonlight Nelson Creek, from 8d to 3d and later buyers at 4d. Mahakipawas were active with sales from Is to 7id then to lOd and 8-kl. The prefs. brought Is 2d. Alexander (13s Gd paid) changed hands at 14s 3d to 14s 2d, Brian Boru at. Is 6d to Is 9d and Is 7d, Gillespie’s Beach at Is 9*d to Is lid, Mataki 2s Id and 2s 2d and Okarito 8s 5d to 8s 6d. Bell-Kilgours eased from 4d to 3d with buyers later at 3-kl, Goldfields Dredging went from 7id to 9d and buyers stayed in at the higher price. Nevis Electric had sales from 4-)d to 4d, and New _Cornish Point (6d paid) at 6d. Nokomais changed hands at 2s 9d and 2s Bc_, and Skippers at lid. There was business m Maerewhenuas at Jd and and the market is awaiting the begiuning of operations on virgin country. I found interest in mining very keen on the old fields in the north. At Waihi they are watching with close attention the development work that is (roino- on in the big mine, and hoping that it will prove the existence of a oood body of ore. Mining is playing an important part in providing employment, and if for’ that reason alone it is io be hoped that the companies will meet with encouraging success.