THE MONET MARKET

Ashburton Guardian, Volume 54, Issue 257, 11 August 1934, Page 7

THE MONET MARKET

RESERVE BANK RETURNS. EMPLOYMENT OF CAPITAL. THE WEEK ON 'CHANGE. (Written for the "Guardian" by Investok.) In future, apparently, we are to nave a vveeiUy statement oi the anaUs or tile Keaeive JianK, and that mania auotner stage m iiie development or a money marivec. a 1 or a start, it seems, our central, institution noius nknu sterling exonange than tne trading department oi tne Commonweal m uaiuc, out possibly tne JLonuon oaiance3 will not be quite so important a factor in the .regulation of credit ah formerly. Tne Government has repaiu the trading banks for the Treasury Hills issued against London iunds, tlius ettectmg a substantial saving in interest, and clearly bringing the banks face to face with the problem of finding a suitable use for their funds. judging by the big premiums asked for current Government issues there should be little, if any difficulty, in raising a loan lor building workers iiomes, as outlined recently by' tne member for Mid-Canterbury. ' On'& of the pressing problems, and it appears to* be world-wide, is to lino a means of getting the capital available to work, it is a strange thin 6 tnat, despite tne prolonged depression, or possibly because of it, there are accumulations qf capital to-day greatr er than have been recorded lor man\ years. This is due chiefly to the fact that those with money are lacking in the necessary confidence. The business, world would soon use,it if the industrialist could be-assured that he could sell his output at a reasonable profit. The protective steps taken by so many Governments with respect to debtors have also had a distinct effect. It has been stated that the private gold holdings in London, mostly on foreign 'account, run into at least £100,000,000. How the figure is arrived at I do not know, but it is certain that nervous holders are content, for the present, J not to lose anything rather than take any risk in order to make more. Prices Generally Firmer. Business on 'Change this week has been brisk. Prices taken as a whole are firm, ' but sellers' snow no disposition to make concessions. In the Government section the 4 per cent.' stock, 1940, touched £lO7, and later buyers offered £lO7 ss. The 1949 issue sold to £lO7 17s 6d, and the 1955 at £IOB, with buyers later at £IOB 10s. The 1940 bonds went to £lO7 ss, and for the 1955 bonds buyers have offered £lO9. I cannot recall a time when such premiums were offered. In the banking section Reserves have been prominent, but it is clear that the sellers are holders of only small allotments. The price went from £6 5s 9d to £6 6s 6d. Commercials cum div. moved from 15s 7d to 16s, and buyers stayed in at the higher price. For the prefs. buyers advanced 3s 6d to £9 16s, but sellers did not respond. E.S. and A's had dealings at £5 0s 6d and £5 Is, and Nat. of Australasia (£5 paid) sold at £6 and £6 Is. New South Wales cum div. are steady at'£3o ss."New Zealands have moved irregularly. They went from 46s 9d to 46s sd, and then recovered to 46s Bd, with later sellers at 46s 7d. Insurances are exceptionally strong.

A.P.A.'s were turned over at 10s 2d and 10s Id. Nationals from I9s 6d to 19s lOd, while New Zealands cum div. sold at 635, and ex div. at 625. South British went from 83s to 83s 9d, and Standards had business to 66s 3d. Loan and Agencies. Loan and agencies have not had much attention. JDalgetys eased with sales at £9 2s and £9, and Goldsbrough. Morts after an early sale at 28s 7d, sold at 28s, though later buyers offered at 2S's 9d m Cnristchurch. Shipping shares have been more active. Union Steam prefs. sold at 27 s ill two centres, but a reported sale oi P. and O. def. .stock at 18s 3d in the north is difficult to understand. The previous transaction in my records was at 21s 6d. Coals have not had much business. Stockton ords. sold at 3a 4d, and vVesports were offered a little cheaper at 19s 4d. . . Tne only business m the woollen section was of Ivaiapoi ords. (17s paid) at lis 2d and lis 2*d. .buyers stayed .ii at us 4U, and tney ottered ifc/s ior tne prets. * . . . Meat company shares sold included a parcel of JNo'rch Canterburys at 2Us. J.HIB snows a good recovery, and sellers are now ftsicing Siis, but buyers stopped at 16s. N.Z-. Iteuigerating paid , .*au dealings at l»s 6a, and tne ius | paid at »s 3d. JS.Z. Breweries are firm,' with sales from 43s lid to 44s 6d, and further ouyers at the higher price. Staples cum div. sold at 28s 6d and ex div were available at 28s 9d. Timaru (7s M paid).had a sale at 6s,Bd, and later ouyers only Id away. There iias been nothing of outstanding interest in the miscellaneous section. Aust. Glass brought 48s, and British Tobaccos 36s 9d and 36s lid. Colonial Sugars had a sale, and sellers at £64 15s, and Wilson Cements, several transactions at 30s. Dominion Fertilisers were dealt in at 18s 6d, and Kauri Timbers at 17s 8d and 17s 6d. • Activity in Mining Section. The mining section has shown Renewed activity. The amending legislation, clearing the wav for companies to operate on a larger scale, shows chat the search for gold is of the keenest This week Alexanders (13s 6d paid) sold at 14s lid, while Brian rJorus were a little easier with busiuess at Is s£d and Is sd. Charlestons, alter early sales at Is o£d, had sellers at Is. Gillespie's Beach joins the ranks of dividend payers. The shares sold at 2s UA to 2s 3d and 2s Id. Gienroy are steady with business at. Is and Is 2d, and Mataki realised '2s. Moonlight Nelson Creek firmed to 6d in the north, but the only sale of Okaritos was at 7s 9d. The southern group has been more prominent of late. Bell HoOpers sold from oid to 6d, and BellKilgours from 4|d to s|d. Bendigo Goldlights had business and buyers at Bd, and Central Shotovers sold at Is sid and Is sd. Golden Point touched 3d, and later sold to while Goldfields Dredging went from lid' to Is OH and Is. King Solomons are steady at 3s Hid and 4s, and Maerewhenuas sold at 6d and 6Jd. Mahakipawas had business between lOd and lid, and the 1930 prefs. touched Is 2d. Dealings have covered a wide range this week.