SYDNEY SHARE MARKET.

Press, Volume LXVI, Issue 19941, 30 May 1930, Page 16

SYDNEY SHARE MARKET.

RETURNING CONFIDENCE.

The trend of investment price* on the Bydney Stock Exchange of late, remarks the "Sydney Morning Herald," has been more encouraging than for month* past. After an almost unbroken aeries of reverses this year it looks is if. most classes of shares are beginning to take « turn for the better.

Three external influences have combined to bring about most of the improvement in the investment marketa sensitive barometer of the country's prosperity, bountiful rains, sustained improvement in wool prices, and a more hopeful view of the industrial sitnation. . , Owners of industrial shares who have ■een the market values of their holdings whittled down in recent months to levels undreamt of during last year's period of high prices are hopeful that the market has "touched bottom." At all events buyers have operated with more confidence of late than for a long time past. Furthermore, they have been advancing their limits steadily though cautiously for sound stocks, many of Which are quoted at the advance. A significant feature is that the tecent strongly-sustained advance in Commonwealth bonds has been broken by price irregularity of late. Prices of industrial stocks suffered severely for weeks, while investors transferred their funds to gilt-edged securities, for which they have shown a marked preference during the period of trade depression. Now it looks as if buyers, rendered more confident regarding the trade position, are giving better attention to sound industrial shares. One factor to which share prices have reacted sympathetically, and which the market has taken as a hopeful sign, has been the maintenance of dividend distributions at their usual rate by several important companies. For months the market has been depressed by the reduction or passing of dividends by many companies in order to resources" during the depression. Last month a good impression was made when the National Bank of Australasia announced its dividend at the usual rate. More recently similar announcements by the Colonial Sugar Refining Company, the Australian Glass Manufacturers' Company, and Tooth and Co., have put heart into many investors.

U.S.A. TARIFF BILL. MANY PBOTESTS RECEIVED. (mnnn FBxss assocutioh—bi iixoraw ZKUBfiKUS—OO7TBIOXX.) WASHINGTON, May Jg. Over 160: protests and -observations •a the Tariff Bin have been received by the State Department from thirty foreign countries, and forwarded to the Senate Finance Committee. The large majority are from foreign trade organisations v and individual producers. Some, however, express the views of Governments. The. communications date back as far-a* March, 1929, bnt •everal have been-received this month.

EMPIRE AS ECONOMIC GROUP. SF.U.G. COMMITTEE'S RECOMMENDATION. LONDON. May 38. The "Daily Mail" says that the Economic Committee of the Trade Union Congress General Council has drawn up a remarkable report.'urging that it would be in the interests of. the Trade Union movement for the Labour Party at the Imperial Conference to .press for the fullest possible, development, of the, economic relations between Britain and the Dominions, including the. creation of machinery and agreements with the Dominions for the further development of inter-Common-wealth trade. The committee points out that among the factors favouring the establishment of the British Commonwealth as an economic group are the fact that supplies of raw materials and manufactured eoods could be balanced and that , there is an abundance of opportunity fOr movements" of population within it. GOLD PRODUCTION. SUGGESTED AUSTRALIAN BONUS. In an address to the Economic* Study Club, Perth, Mr O. da BernaleS, obairmaa •{ tha gold bonus committer of the Mining Association of Western Australia, expounded the case in favour of a bonua of £1 an ounce for tan years being granted by the Federal Government on tha production of gold. Mr Berpales said that going back • only as far aa 1030 it waa noteworthy that . there had been a steady decline year by year in .production from 617,842 mto 877,17603 annually. This deolme'was direct- . ly traceable to the continuous demand for ' higher grade bie necessary to meet the rifling costs r of production. Gold was in a ' different category from ■ all other primary produots. It had a fixed standard value and • ready market: The suggested. bonus ~ Would permit of the mining of large ore bodies • yielding 6dwt to the ton and upwards It -had been calculated that in four years after the granting of the bonus the -gold output .in Western Australia. would be ;. lnoreaeed to 1.500,0000z, to say nothing of the likely developments in the other States. Ho submitted that it would be cheaper ' lor the' Commonwealth to pay the bonus of ' £1- an os than to allow the £4 represented by the value' of the ounce, of gold that' would be-won to remain owing. to Australia's oreditor at compound interest. Tak ~ ing- an, average of 5 per cent, as the rate ef interest on the national debt, which would mean 4s a rear on Si, every four and a half-years' compound interest would i mount -to £U. Therefore every four and a half years the gold was allowed, to remain in : the. ground Australia was losing in interest parable on external debt the full amount ef the snsrgested bonus.

The foregoing has a degree of interest for the New Zealand mining industry There are large areas in this country containing ' low spade ore which will just about pay expenses, but insufficient profit to justifv the expenditure : of: capital. . With some relief in the direction -of taxation and Customs duty on machinery, it is quite possible—now that "old in London is quoted at £1 4s Hid an onnce and a 5 per cent, premium is payable" in Australia—that this low-grad« ere could be nrofit-vbly worked

NEWSPAPERS BEST. Mr C. Dandndge, the London and NorfchItatern Railway advert'ainp manager, ■jetting to members of the Britfsb Industrial L -Ataool«tion recently, said: We rely more ~.'» advertising; tnan on anv other ! -¥K v t*iZ32?iJS** c * at ' °' *"* comoany'e adverto/«i "kSSS?' "??Ks£'' *■* ,aid > wa »"■pent with *h« i r T,,we <" »° better way." Im T? '»**• to relv on the new*-anew MfcS*'MtffiL£«JP-iT m * t * TW tne-fiiirk story