SHARE MARKET UPSET

Press, Volume LXXIII, Issue 22005, 1 February 1937, Page 11

SHARE MARKET UPSET

Interest Rates Uncertain STRENGTH OP WOOL POSITION (UNITBD PRESS ASSOCIATION —C'OPTRIGHT.) (Received January 31. 6.30 p.m.) LONDON, January 30. The second week of bank chairmen's speeches should have been a tonic to the markets, but investors refused to respond to their optimistic pipings, and, instead, sold stock so heavily that gilt-edged securities experienced the worst set-back since the black days of February, 1935. The main influence seems to have been the conviction that interest rates must rise over a long period, combined with fears of increased taxation. Nervousness over the currency situation Ms contributed to the unsettlement, which has extended to Dominion issues and many industrials. Metals Cheaper Commodities did not escape the prevailing depression. Most metals have been carried to rather high levels in relation to anticipated production-. There is no new factor in the oil market to encourage bulls. Rubber shares enjoyed a temporary spurt, following the committee's decision to raise the ouota, hut it was not maintained, owing to the continuance of the United States strike. Sugar is firmer on the announcement of the international conference, lor which the industry has waited 18 months. The British Empire dominates the industry as a producer and consumer, and therefore the chances of agreement are enhanced, but negotiations will be difficult, as a considerable surplus capacity still exists. The consuming markets are so closely protected that the free world market absorbs little more than 30 per cent, of the total production. The agreement will certainly mean a further rise in price. In relation to other commodities, sugar does not appear overvalued. Copra continues weak, but the tone is steadier, with consumers showing more interest. There was some speculative enquiry at lower levels. Butter Irregular Butter remains irregular, following the unexpected break early in the week, due partly to the publication of stocks, which showed an increase of 2000 tons, compared with last month. The market has been affected by the lack of speculation among importers, who are restricted by the agreement with the New Zealand distributors, which may delay the expected recovery. Danish showed a useful improvement. Wool More Settled The wool trade is gradually moving towards a more settled basis. The London lead was welcome as a stabilising influence, and provided a solid indication of the values that Britain and the Continent arc prepared to support. The large pastoral companies mostly elected to sell at current prices. Japan's switching from Australia to South Africa in the interests of her own internal economy is naturally a disturbing influence, but that operators withstood it is proof of the strong position of wool. The "Yorkshire Post" considers that London values are likely to be maintained for some time ahead. MINING NEMONA The Nemona return to January 29 is 30 ounces. The dredge has been digging mostly through old tailings and some virgin ground. This class of ground will continue for another 10 days before a full face of unworked ground is reached. The'next wash-up will not take place until February 12. GILLESPIE'S BEACH (PJtISSS ASSOCIATION TELE.JRUt.) DUNEDIN, January 31. Gillespie's Beach reports a return for the week ended January 29. of 790z Bdwt for 128 hours. WAIPAPA BEACH DUNEDIN, January 31. The Waipapa Beach wash-up for 124 hours' dredging was 28oz sdwt. MOSSY CREEK GREYMOUTH, January 31. The Mossy Creek return is 41oz 6dwt for 11,600 yards, in 132 hours. MAORI GULLY GREYMOUTH, January 31. The Maori Gully return is 340z ldwt for 132 hours. ELECTROLYTIC ZINC The Electrolytic Zinc Company of I Australasia, Limited, production statement is as follows; Four weeks ended Dec. 16. Jan. 13. 1936. 1937. Zinc, tons .. 5,386 5,337 Of which used at the works .. 90 90 Silver lead product for shipment to Port Pirie for realisation — Lead—Tons .. 180 160 Silver—Ounces . . 34.500 34,500 i ! - NEW RIVER i The New River return is 30oz of j amalgam from 9000 yards of old worki ings. | WHITE'S ELECTRIC The White's Electric return is 28oz from 7000 yards. GOLDEN DAWN At the Golden Dawn mine, for 11 working days ended January 19th, 267 tons of ore were treated for a return of £1207 at £7 2s a gold ounce. PRICE OP SILVER RUGBY. January 29. Silver is quoted at 20 15-16 d a tine ounce for spot and 20£ d for forward.