GILT-EDGED STOCKS IMPROVE

Auckland Star, Volume LXI, Issue 236, 6 October 1930, Page 4

GILT-EDGED STOCKS IMPROVE

AUSTRALIANS RECOVER. OTHER LINES LIFELESS. LONDON, October 4. 1 The Government's decision to issue 4 per cent Treasury .bonds, to pay oil £75,000,000 of the 4 per cent tax-com- , pounded war loan, was very favourably received. The immediate effect was a sharp i advance in prices of British funds, and the {Tilt-edged market' was more active yesterday than for some time. The 5 per cent war loan was marked to 104 13-16, its 1 highest record. Australian issues all showed a marked recovery from the slough of despond into which they had sunk. This improvement is partly attributable to the hopes of good results from the Imperial' Conference, while Mr. Scullin's reassuring utterances were also a contributory factor. But other departments of the Stock Exchange are still lifeless, although better news from Wall Street caused a somewhat firmer tendency in industrial stocks, which have mostly been very flat owing to the depressed condition of the _ commodity markets, especially rubber, while the mining group kas been overshadowed by the slump prices mentioned later. If any evidence were required of _ the unfortunate, position into which British trade has fallen, it may be found in the "Economist's" index number of commodity prices, which at the end of September stood at 73.2, compared with 91.8 in September, 1920. Thus during the past 12 months prices on the average have fallen nearly 19 per cent or close to 4/ in the pound. The average level of commodity prices is now only about 5 per i cent higher than in 1913, and excluding ' foodstuffs the index figure for raw materials is substantially below che prewar figure. Slump in Metals. All the non-ferrous metal markets have had severe setbacks in the past fortnight. The values of several declined seriously. Standard copper, at £42 17/0, touched the lowest level since 1894. Tin, in spite of the decrease in visible supplies, fell ro £123 17/6 a ton, the lowest price since 191 G. Zinc collapsed to £14 10/, the lowest for more than 40 years. Pig lead at £16 8/9 marked the lowest figure since 1013. In, each case the depression was attributable to a great reduction in trade requirements, with the consequent heavy accumulation of stocks, arid the great increase in production within the last few years. Food is Cheap. Another group of articles which shows a considerable decline is that of the food products which Australia and New Zealand export, notably butter and cneese, which arc respectively about £60 a ton and £23 lower than a year ago. lhe egg market, too, is very depressed. Heavy supplies from the Continent are a\c\ilablc, with the result that Australians, although the quality is excellent, meet with only a poor demand at about 14/ per 120. Bacon id another very cheap food just now. lis price is down to pre-war level, consequently the British housewife can supp.y the breakfast table much more cheaply than she was able to do some years ago. Clothes Still Very Dear. New Zealand butter is_ obtainable ai 1/6 per lb, Australian at 1/3; Danish streaky bacon at 1/3. Eggs are 2d each. lac fall in wheat has resulted in a reduction in the price of bread to 8d for the 4lb loa.. On the other hand, prices of all clotnts have been maintained most unreasonably, the fact that wool is at a lower level being counterbalanced by what the tailor and dressmaker describe vaguely as overhead charges." . i Tho Australian rabbit season opened 1 none too well, for although the arrivals 1 are described as excellent in every way, prices are below last years, bes < realising 26/6 a case, and. young 23, . Unc reason for the lower price is the great slump in the value of the skins, which last year made about 4d each, and now are worth only IIM.l I M. As large shipments of Australians are afloat, there is little pros ■pect of any improvement.