LONDON STOCK EXCHANGE.

Press, Volume LXVII, Issue 20252, 2 June 1931, Page 10

LONDON STOCK EXCHANGE.

FINANCIAL REVIEW.

CONDITION OP TRADE,

rr.sss association—by, electiuo ■tEEEGIiAfH—COPSIHGHT.)

LONDON, :May SO,

Since tlio resumption of. business after Whitsuntide the Stock Exchange lias been in a depressed' condition, chiefly owing to tho unfavourable. developments in Central Europe and tho further weakness of Wall Street, though, fortunately, both failures have been unimportant. Even feritish funds, which recently had been so strong, showed some reaction. Foreign stocks were very weak, oh account'cjf tho Austrian bank, failure . and ( the doubts " about German " Reparations payments. Yesterday, however, saw a littlo ray of sunshine, and markets were mostly firmer. The extent of the shrinkage of values on the Stock Exchange is revealed in tho "Bankers' Magazine." The monthly valuation of public securities shows that tho market value of 365 representative securities has fallen during tho month £219,000,000. The decline, with tho exception of November,. 1929, following the great slump in New York, is the heaviest for many years, and brings the aggregate values very near the point at which it stood in 1922, when the "Bankers' Magazine" commenced its records. Taking tho general index number at December, 1921, as 100, tho figure to-day is 108. In January, 1929, a few months previous to the election of the Labour Government in Britain, the index number was 127, since when that figure has steadily gouo down to the present level. Australian Finance. Weekly financial newspapers, which make little comment on the Australian Unsocial proposals, are mostly content to publish details. Tho "Economist" says: ".For the moment it is sufficient to say. that Australia's present methods possess a far greater chance of Buecess than those essayed earlier in tho year."

Explaining the city's view of the Premiers' Conference proposals," a'wellinformed authority tells the Australian Press Association that while tho city generally is not greatly perturbed, opinions fall roughly into two classes, one of which considers . that the authorities havo at last' come face to face with the unpleasant facts,, thus holding out hope of the formulation of a sound and rigorous financial policy. On the other hand there is obscurity regarding the compulsory or voluntary conversion. Those fearing the former ore unable to Bee an early return to confidence.

Trade Disappointing. r>! Be viewing the state of trade at Home and Abroad, "The Economist" says;— Doting the past few weeks the business situation has disappointed all hopes of an* Improvement which were entertained earlier in the year. The plain truth is that confidence is still lacking and the business world is still waiting for something favourable to turn up, ; either in the political or financial sphere. That is by no means a healthy ■ atmosphere, especially when it is remembered that industrialists are already fully appreciative of their escape from further taxation in the recent-Budget. * ■ By itself the bank rate has proved of i little direct assistance, and it is doubtful if it has reduced the rate charges | on bank loans to more than a very small 1 minority of borrowers. It has, howt r , ever, brought nearer the possibility of *' r dealing with the 5 per cent, war loan and taking, a long view of the sub- , conversion .operation, which would place the National Debt upon a 1 <4 4 per cent, basis, and would eventually result In driving more long-term capital into industry, and- so -bring about a general reduction of fixed interest rates here. However, the question of confident again arises. No doubt tho ."i| recent strength of British Government r securities is largely - due to the reluctanee of the investor to venture his savings elsewhere.

•• v ' Butter Market. The position in the butter market is r., more satisfactory than for some .time. .' There .is a good consumptive demand, especially "for Australian, and New Zealand butter, and arrivals'are clearing well, with the result that prices' have ' hardened 3a to 4s a «wt. There also " were considerable purchases of Ans* tralian and New Zealand butter for ei shipment up to July. The'production ofhoth Britain and the Continent is inonly slowly, owing to the late ? spring. Importers are hopeful of mttin- - tiining the present prices- for the next

; BANKRUPTCIES.

WELLINGTON FIGURES.

(I'XSSS ASSOCIATIOif TELEOEAII.)

WELLINGTON, June 1.

There were six bankruptcies last month; in Wellington compared with three a year ago. Three bankrupts last month were miniature golf course proprietors. The total hulnber of bankruptcies for the yeit to data is 44, compared with 24 for the same period of last year.

CANADIAN WHEAT. OPEN MARKET SALES. <ncmo tosss AasocuTios'—bt kucikio sbmgsapk—corxaiaax.) .» (Received June Ist, 9.45 p.m.) r.j OTTAWA. May 31. It is announced from Winnipeg by '-!* Wheal; Pool officials that open market selling of wheat and coarse groins as ' a " approved by the Manitoba'Wneat Pool' ' under an optional iystem. by ' which ; members wifibe able to collect the full / spot price on delivery at poor elevators, will' be effective on Monday.

J HOWNTBEE AND jCOJIPANY.

it, Th«* director* of Bonrntreo - and Company, f - of Xorlc. ttuuifaofcumea of cocoa, • chocolate, .' «t«y Taport •Mt vrSU for 1930 of £171.541, Ybfca b 578,618 less than that for 1039. ani £73.314 lea -than -that for 1939- < It is however, to maintain the dividend . on tie ordinary share*, which are privately fceldL at 10 per cent for the year. The ..." mml rwMrro fund, which was raised to ~ . JUOMOO by '» transfer of £47,760 ont of th« t ■ proitj for 1999, Is to. have no allocation .this o year, while the payments to tho management and the workers trader the proflt-jharlni; •efcame rajoixe oaly UIZ, asaiuit £23,000 a l»||b