THE MONEY MARKET

Ashburton Guardian, Volume 55, Issue 138, 23 March 1935, Page 7

THE MONEY MARKET

AN INTERESTING PERIOD. & MOVEMENT IN INDUSTRIALS. THE WEEK ON ’CHANGE. /"Written for the “Guardian” by Investor.) The difficulties experienced by the Minister of Finance in securing agreement in the party caucus to the provisions of the'Final Adjustment Bill is , reflected in the different opinions held by private citizens. The fact is, as the Timaru Chamber of Commerce put it, i there are so many fact.ors to be investigated, so much new ground broken, that one must work a way to a sound conclusion, and time should be granted for the task. Many people hold that the Bill! is along the lines recommended by the Dairy Industry Commission, and some of the statements made in Parliament lead in that direction, but if the legislation, in broad effects, implements the Commission’s recommendations it departs from them materially in others. We have not the evidence given before the Commission, but on page 73 of the report it is stated: “We think that it is’ due to the farmers of the Dominion that we should state that they did not ask to be allowed to repudiate their capital liabilities,” and it went on to say that “scarcely one urged that a mortgagor should be relieved of capital liabilities.” But the important part of the Bill is that by means of which, ultimately, these liabilities might.he written off. My reading of the report is that it did give some consideration.for the unsecured creditors, but I do not know where they stand under the proposed scheme. And it must be remembered that the report was signed on October 15, when butter was down to 64s per cwt. Since then it has gone over 80s and is now about 745, 765, so

that the season’s pay-out may be better than was anticipated. If the Bill is held over till next session then the producing season will have ended and the producers will know what payment, including any bonus, they will get. Price Levels Break. It has been a most interesting week on ’Change. On Wednesday the price level broke and some Australian industrials fell rapidly. Dunlop Rubbers, for instance, sold at 17s 9d on Tuesday and down to 16s 5d on Wednesday. As often happens the movement over-carried and. some issues have since firmed a little Business has been within restricted limits, and there is a feeling of uncertainty Government issues are firm, the 4 per cent 1946 selling at £lO6 2s 6d find the 1955 to £lll 2s 6d, both bonds and stock. Banks have had scant attention. Commercials eased with sales at 16s and 15s lid, and New South Wales sold at £3O. New Zealand brought 49s but there were later sellers at 48s 9d, while the D mortgage shares firmed from 32s 4d, to 32s 6d". Tieserves have been steady at £6 10s 6d, and Australasia cum div. sold at £ll 6s. Quotations indicate an easier market. In the insurance section business has been limited to New Zealands at 68s 9d and South British at 94s 6d and 95s 6d. Goldsbrough Morts sagged from 27s 9d to 27s Id and sellers offered more at the lowest price. The only other business to time of writing was of Wright Stephenson prefs, at 19s 2d and 19s 6d. Woollens and Breweries.

The only sales of woollens were Bruce ords. at 14s and Kaiapoi (17s paid) at 14s 6d. Dealings in coal mining shares included Stockton ords. at Is 9d and Is lid, buyers staying in at the higher price, the prefs. at 4s, and. Renown prefs. at 2s 6d. Most brewery issues eased a little, Timarus being one of the exceptions. New Zealands sold from 51s 7d to 51s sd, and have since been available at 51s 3d. Staples realised 31s 3d, Tooths 49s 3d and Dominions 14s. New Zealand Refrigerating paid sold from 19s Id to 18s lOd, with further sellers at 18s lid, while the partly paids, after business from 8s 8d to 8s 6d, were offered at 8s sd. British Tobaccos cum diy. dropped from 37s 5d to 36s 2d, and are Is down for the week with sellers at 36s 6d. Colonial Sugars were firm at £4l 10s. All dealings in Wilson Cements were at 34s and in New Zealand Newspapers at 31s. New Zealand Drug cum div. realised 79s ,with further buyers, and Dominion Fertilisers sold from 22s to 22s 3d .and 225. Interest in Mining. As usual mining has provided some interest. In Christchurch the sudden demand for Alexanders (15s paid) put the price up from 17s to 17s lid and 17s 9d, with buyers 2s up for the week at 17s 6d. Big Rivers also moved up from 2s o£d to 2s; 4d, and further buyers at the higher price. Mahakipawas have been firm at lid, though later sellers quoted Maori Gully changed hands at Is 5d and Is s£d, and Mossy Creek at 2s 7d. Goldfields Dredging have been steady at 6d with business in three centres, and King Solomons at 3s lOd and 3s 10£d. Skippers were turned over at 4£d to sd. Bell Hooper had sales at lid and Id and Nevis Diesel were sold at 2d and 2Jd. Waihis moved from 39s 10id to 40s 3d and sellers are asking 40s 9d. Elbctro. Zinc ords. firmed from 21s 6d to 21s Bd. The firming of prices in the mining section came on Thursday, but taken on the whole quotations are not very far from last week’s level.

A cable message late in the week mentioned that the weakness of the mining market in Adelaide had been reflected in Sydney. It is a strange thing but Adelaide is the most active mining market in the Commonwealth. On some days the transactions run into six figures, shares in well over 100 ventures changing hands in a day. The explanation given is that in the days when the goldfields in "Western Australia were developing Adelaide became the mining centre, as far as shares were concerned and i£ has held the lead ever since. They have some hectic periods on ’Change in that beautiful city.