ENCOURAGING REPORT

Press, Volume LXXII, Issue 21975, 26 December 1936, Page 9

ENCOURAGING REPORT

DOMINION-GROWN TOBACCO i GOOD SALE IN LONDON V'. (PEBSS ASSOCIATIOK TBLEOHAM.) WELLINGTON, December 25. A most encouraging report of the experimental shipment of 85 tierces (approximately 78,0001b) of Nelson - grown tobacco leaf to London, by the Port Hobart, which left Wellington on October 15 last, has been received by cablegram from the High Commissioner for New Zealand, at London. It is to the effect that arrangements have been completed for the disposal of the consignment at an over-all average price of 2s per lb. “It will be appreciated that the overall price represents a considerable improvement upon that realised for a similar shipment in the previous year,” said the Minister for Agriculture (the Hon. Lee Martin). "Selling commission this year has been reduced to 3 per cent.’’ : DAIRY PRODUCE 1 BUTTER MARKET QUIET ' Further drop in prices LONDON, December 24. The butter market is quiet. Quotations are:—»

LOAN FAILURE AUSTRALIAN BORROWING HIGHER INTEREST RATES The wisdom of the Commonwealth Bank in declining to underwrite the last Commonwealth loan was emphasised by the Melbourne “Argus” in commenting upon the failure of the issue, which was announced in a cablegram published last week. The loan was for £7,500,000, and with about £2,000,000 undersubscribed it was the least successful of any loan offered since borrowing was resumed just after the height of the depression. The result of the loan, which was issued at £97 10s, bearing a coupon interest rate of 3j per cent., and giving a return, including redemption, of £3 19s 4d per cent., shows clearly that the money is not available from the savings of the people, states the “Argus.” Economic recovery in Australia has been proceeding apace in the last two years, and the demands of industry for capital for the furtherance of expansion have been so great that the point is rapidly being reached when, in the absence of any further augmentation of the credit Irase, money will be obtainable only at dearer rates. Trend Towards Dearer Money The trend toward dearer money has ■been very apparent since March, when the trading banks increased their rates for fixed deposits by 10s per cent. Recent months have seen an appreciable increase in the return on Government bonds, in rates charged on overdrafts, and in interest rates on first mortgages. To carry through Its amended programme the Loan Council will need to raise £7,000,009 some time now in the new year. It is certain, if the money is to be obtained from the market and not from the resources of the Commonwealth Bank, that a return more attractive than £3 19s 4d per cent, will need to be offered. The average yield on the 10 4 per cent, issues on December 12 was £3 19s 9d, establishing a new high level for 1936. A new loan will tend to raise interest rates still further, and at the same time will exert further pressure on the trading banks, which have been keeping up with the demands,of industry for accommodation, in spite of the fact that there is a disproportionate increase in the amount of deposits. Unless some early alleviation is given the banks will be bound to preserve a safe degree of liquidity by increasing again rates of interest chargeable on deposits and advances, MORE BUSINESS BRADFORD TOPS MARKET LONDON, December 24. Thfe Bradford tops market is very firm, with improved enquiry and gobd consumption, With rather more business. Quotations; — Dec. 17. Dec. 24.

LONDON EGG PRICES LONDON, December 24. . Eggs are steadier. Fourteens, 8s 9d to 9s 100; fifteens, 9s; sixteens, 11s 6d to 12s; seventeens, 12s 3d to 12s 6d.

Dec. 17. Dec. 24. s. s. s. s. Danish — to 114 — to 110 Australian— Salted — — — to 94 Unsalted — to 104 — to96 New Zealand— Salted — to 100 — to 95 UnsaKed — to 108 — to 100

d. d. 70’s .. 37J 38 64’s .. 36 36 60’s .. 35 35 58’s .. 32 h 324 ? 58’g .. 30 30 SO’s .. 22i 224 ■