THE MONEY MARKET

Ashburton Guardian, Volume 55, Issue 14, 27 October 1934, Page 7

THE MONEY MARKET

DOMINION'S OVERSEAS TRADE. THE EXCESS OF IMPORTS. THE WEEK ON 'CHANGE (Written for the "Guardian" by Investor.) The report of the Company Promotion Commission has been duly presented, and, with the report on the dairy industry, will do something to make 1934 memorable. There seems to be a real need for somo method of making these reports available to the public as soon as they are brought down. The farmers are expected to discuss the proposals, but few of them have an opportunity to read the report, and, however good the selection of extracts may be, one must study the thing as a whole before sound constructive criticism is possible. I happen to have read both documents, and was struck by the trend of the recommendations. Both suggested a central controlling authority, armed with powers that our fathers would have considered outrageously wide', and some of the recommendations would, in effect, remove control from Parliament to these special bodes.. Well, we may be, as some of my friends tell me, evolving from, the individualistic stage into one of joint and controlled action, but evolution at the rate proposed runs counter to my understanding of that great principle. I always thought it wan slow-moving. But we must wait to sec the legislative form finally adopted ■before we can assess the advance —if advance it proves to be. A country! that can show an excess of exports over imports in the course of nine months amounting to nearly £17,500,000 should have little difficulty in financing its own internal requirements, and with money on deposit in the banks at what must be record levels there is a need for opening avenues of investment or some of tin's money will leave the country. That fact led me to hope that the Minister of Finance will use some of the powers taken, for the raising of £6,000,000 for various purposes, and in that way add to the resources from which he derives revenue. Business not so Active. Business on 'Change has not been nearly so active, although the turnover tended to move up as the days passed. In the Government section the demand is still for the 4 per cent, stock. The 1946's sold at £lO9 and £lO9 10s. the 1949 to £lO9 10s, and the 1955 touched £ll3 10s, as did the bonds of that issue. In the banking section Reserves are steady at-£6 10s 6d to £6 lis, and buyers stayed in at the lower price. Commercials sold at 16s 2d and 16s Id, and the prefs. brought £lO. National of Australasia cum div. came from £l2 17s to"£l2 12s 6d, and the £5 paid shares sold at £6 3s 6d, a movement a little difficult to understand. New South Wales sold at £32 and £3l 17s 6d, and Unions at £9 7s 6d. National of New Zealand are steady at 70s. New Zealands are firm with business from 48s 6d to 49s 3d; with later sellers at 495. The high prices ruling must account for the limited volume of business passing in the insurance section. Nationals changed hands at 21s 9d, New Zealands at 68s and 695, and Standards at 71s, and there are few sellers. Goklsbrough Morts have eased a»am, with sales at 31s Id and 30s 4d. sellers offering more at 30s sd, against 31s 3d last week. N.Z. Guarantees are steady at 5s 5d and 5s 5Jd. Few Dealings in Coals.' Dealings in coal company shares have been few. Westports sold at 19s id, lCaitaugatas at 21s 6d, and Renown prefs. at 2s sd. The chairman of the Coal Companies' Conference this week contended that there were too many mines operating. The difficulty is to lind a market, and we may yet have the miners, and the companies, urging the development of a process for extracting the oils from our coal. The Miners' Conference at Home, 1 understand, has adopted that course. The onlyi sale of woollens was of Kaiapoi ords. at 13s 9d, and dealings in brewery shares were limited to New Zealands and one of Timaru (7s 6d paid). The big company's shares sold at 49s to 49s 4d, with sellers at the higher price, and Timarus had business and buyers at 7s 6d, with no furtheroffers from ' sellers The sales of Colonial Sugars at £<4 to £BO ca« be understood in the light of the chairman's speech. Dunlop Rubbers, alter steady business at 20 ! s Id and 20s had sellers at 19s lOd. British Tobaccos moved from 41s 9d to 42s oil and 425. Wilson Cements are steady at 345, and Broken Hill Proprietary at 52s 7d and 52s 6d. Cons. Brick have been active at 10s lid and lis. Individual sales have .covered a fairly wide range. The Mining Section.

There has been nothing outstanding in the mining section. The most marked movement was in Worksop If tended, which went from 2s Oid to 2s 6Jd, with buyers ready to take more at the higher price. Waihis touched 395, but were later available at 38s 6d. Big

Rivers' -firmed to Is 8d and Is Bid, while Gillespie's Beach are steady at Is BJd and Is 9d, and King Solomons at 3s 7£d to 3s 9d. All dealings reported in Mahakipawa have been at lOd, and in Mataki at 2s 8d and 2s Sid. Nokomai sold at 3s 6d, and Skippers at 6d and 6|d. The proposals of the Companies Commission, if adopted, will give the suggested bureau power to deal with company prospectuses and generally to examine any new flotation. The idea is, of course, to provide the investor with a greater degree of protection, and it could be contended that genuine companies would not object to any examination of thair plan, while promoters of any "gold brick" schemes might reconsider the matter. Supervision may be desirable, but we do not want any hampering of sound initiative.