FIANCE AND COMMERCE

Press, Volume LXXIV, Issue 22594, 27 December 1938, Page 11

FIANCE AND COMMERCE

LONDON MARKET PROSPECTS

COMMODITY PRICES STEADY

heavy arrivals of new ZEALAND BUTTER

(EXITED PRESS ASSOCIATION—COPYRIGHT.) (Received December 26, 9.45 p.m.) LONDON, December 25. Stock markets have conformed to conventional Christmastide ideas, worsened, if anything, by minor cabinet dissensions and technical drawbacks. M. Daladier’s good budget majorities, allaying French nervousness, are steadying influences. Commodity prices are steady and mostly slightly advanced. The tendency in the markets is to be somewhat more hopeful, in anticipation of greater inquiry in the New Year, which is expected to see a return of Continental buyers. Butter has been firmer throughout the week, but it is difficult to forecast the immediate future, as the weather may alter the possibility of lower prices due to fairly heavy New Zealand and Australian arrivals. Cheese is quiet with a firm undertone for New Zealand.

THE POST OFFICE BANK

EXCESS OF WITHDRAWALS OVER DEPOSITS

FIGURES FOR EIGHT MONTHS OF YEAR

"Withdrawals from the Post Office Savings Bank in the first eight months of the year ending on March 31, 1939, exceeded deposits by £1,730,576, according to figures published in the latest issue of the Abstract of Statistics. It was stated in the previous issue that the excess of withdrawals for the first seven months was £873,963, so withdrawals in the eighth month. November,, must have been, £856,613, the difference between the last two figures. As published in “The Press” earlier, the excess of withdrawals over deposits in October was £1,546,120, the highest recorded in any month during at least the last 12 years. Comparative figures given in the Abstract for the years between 1934 and 1938 show that there has not been an excess of withdrawals over a whole year in that period. The excesses of deposits have ranged between £1,610,681, in 1934, and £3,634,966, in 1937. The excess of deposits in the year ended March 31, 1938, was £3,412,008. For the first eight months of the 1937-38 vear deposits exceeded withdrawals "by £2,618,380, compared whittle excess of withdrawals over deposits in the same period this year of £1,730,576.

LONDON METALS MARKET

RISE IN PRICE OF TIN SPELTER SLIGHTLY LOWER LONDON, December 23. Dec. 22. Dec. 23.

LONDON PRODUCE MARKETS PRICES AT END OF WEEK LONDON, December 24. Friday’s closing prices in the London produce markets were as follows: Cotton—s.24d per lb, January delivery 4.88 d. Rubber—Para 7d per lb, plantation smoked BJd per lb. Jute—December- January shipment £l9 7s 6d a ton. Copra—January-February shipment, South Sea, £9 10s a ton, smoked £9 10s, plantation Rabaul £lO ss. Linseed Oil—£2s 10s a ton. Turpentine—33s 6d per cwt.

LONDON STOCK EXCHANGE quotations for mining SHAKES LONDON, December 23. Buyers. Sellers _ £ s. d. £ s. d. Clutha River ~ 0 1 4J 0 1 7J Molyneux River .. 0 0 6 0 0 9 new YORK STOCK EXCHANGE NEW YORK, December 23. Turnover on the New York Stock Exchange to-day was 1,220,000 shares. TREASURY BILLS

(BBlriSH 0771 CIA I# WIBELE3S.) ■ RUGBY, December 23. The total amount applied for in tenders for £35,000,000 in Treasury bills, was £52,855,000. The average rate per cent, for the bills at three months was 22s 0.45 d, compared with 20s 0.79 d a week ago.

THE POSITION OF WOOL

IMPROVEMENT IN FRENCH TRADE

FLUCTUATION IN DEMAND THOUGHT UNLIKELY

The wool market has not shown any appreciable variation lately, and indications abroad are not for any marked fluctuation in demand, says the latest report of Winchcombe, Carson, Ltd. The outlook in France is now more favourable than for some weeks, activity at the mills having shown recovery.

Wool has certainly demonstrated that it is in a sound selling position during the last four months. Unsettled international conditions and difficulties in some countries have arisen, but the wool market has withstood those unfavourable influences. The level of prices has certainly not been high, but values have shown decided stability. Yorkshire has been the largest individual purchaser of the Australian clip, but the Continental section has played a most important part in enabling ready sales to be made. France, in spite of the internal troubles which have beset her, 'has operated with almost continuous freedom. Her wool needs have exhibited a marked regain. During the first nine months of this year her retained imports of wool from all sources were the equivalent of 1,069,000 bales of Australian weight, being 203,000 bales more than during the similar period of 1937. Her exports of yarns rose 50 per cent, during the months mentioned and fabrics 30 per cent. Devaluation of the franc has encouraged foreign customers to buy more French goods. For some years subsequent to the introduction of a duty of 20 per cent, on woollen textiles entering Great Britain,' English imports from France were negligible. But during the first nine months of 1938 1,100,000 square yax’ds were imported. is a good development for the mills in France, but it is not favourable for the English establishments. By way of contrast British exports of woollen and worsted fabrics to France for the nine months, though totalling 1.168,000 sauare yards, were 803,000 square yards less than in 1937. Currency changes have had marked effects on the flow of trade from various countries during the last 10 years. They have been like a game of chess, trade gaining and receding in the countries concerned. , Meantime wool consumption nas proceeded, but business is not likely to show normal volume until the trading barriers between the nations become less irksome. The arrangements between the United States and Great Britain are one step towards that objective. Hopes are held that a reduction in the . duty on Australian wool entering America will eventuate. Because of the tariff wool is dearer in the United States than in other countries. American millmen would redsn cheaper raw material. It should encourage consumption of the sheep s staple, but a reduction of the duty is likely to be opposed by growers in America. , .... , Of all classes of wool, skirtings have been in the most regularly keen demand throughout the season. A number of grades of pieces and bellies are 5 per cent, dearer than at the first week’s auctions of late August and early September. Only a few fleece wools display that appreciation. The influence of the Continent is chiefly responsible for the relatively streng inquiry for skirtings. The New Year sales open in Sydney on Tuesday, January 3.

SALES TAX LOWER

FIGURES FOR NOVEMBER

The amount of sales tax, collected in November amounted to £304,381, compared with £308,579 in October, and £307,824 in November, 1937. For the expired eight months of the current financial year the amount collected was £2,343,269, a decrease of £38,980 compared with the total for the corresponding period of the previous financial year.

FOREIGN EXCHANGES

(BRITISH OITICUL WISKLISS.)

ASSOCIATED BANKS’ DOLLAR RATES

The Associated Banks (other than the Bank of New South Wales) quoted the following dollar rates on Saturday, on a New Zealand currency basis. They are subject to alteration without notice:—. ' U.S.A. Canada (Per £1 N.Z.) dol. dol.

Selling— T.T. .. .. 3.703 3.74 7-16 O.D. .. .. 3.71J 3.74J Buying—■ T.T 3.75 9-X6 3.79 3-16 O.D. .. .. 3.761 3.801

TRICE OF GOLD

LONDON, December 24. Gold is quoted at £7 9s Id a fine ounce.

A ton. A ton. Conner— £ s. d. £ S. d. Standard, spot 43 18 14 44 0 0 1 Forward 44 3 14 44 5 74 ! Electrolytic 49 10 0 49 5 0 1 to 50 0 0 50 5 0 Wire bars 50 0 0 50 5 0 Lead— Spot t . 15 1 104 15 3 9 Forward 15 5 74 15 6 104 Spelter— Spot T . 14 1 10J 14 0 0 Forward , # 14 1 104 14 1 3 Tin— Spot 214 12 6 215 5 0 Forward 215 12 6 216 7 6 Silver— Standard per ’• 02. 20 l-16d 20id ;1 Fine, per oz. 21|d 21id '■ Dec. 16. Dec. 23. £ s. d. £ s. d. Pig iron, a ton 5 9 0 5 9 0 [Antimony— British . . 70 10 0 70 10 0 Foreign *43 0 0 43 0 0 (A unit) Molybdenite *2 3 0 *2 2 0 .Wolfram „ . 3 16 *2 18 6 •Nominal.

RUGBY. December 22. Par. Dec. 22. Dec. 23. Paris.fr. to £1 179.60 177 5-32 1773 New York, 4.663 4.66J dol. tb £1 4.866 Montreal. 4.663 dol. to £1 4.868 4.703 Brussels, belgas to £1 35 27.69 27.683 Geneva, fr. to £1 25.2215 20.67 20.643 Amsterdam, 8.59 8.58 7-16 fl. to £1 12.107 Milan, lire 888 to £1 92.00 88g Berlin, reich11.65 11.643 marken to £1 20.43 ' Copenhagen, kr. to £ 1 18.159 22.40 22.40 Stockholm, 18.159 19.42 19.42 kr. to £1 Oslo, kr. to £1 18.159 19.90 19.90 Vienna, schgs. 34.585 „ to £1 — ■— Prague, kr. 136 136 to £1 164.25 Helsingfors. 226| 2263 marks to £1 193.23 Madrid, pese25.2215 tas to £ 1 — — Lisbon, escu1103 11 dos to £1 110 Athens, drach 5473 to £1 375 547i Bucharest. 660 lei to £1 818.60 660 Belgrade, 376.3 209 209 dinars Rio de Janeiro, pence to 3 1-16 3 1-16 milreis 5.899 Buenos Aires. pence to dol. 11.45 20.45 20.453 Montevideo, 183 pence to peso 51 183 Bombay, pence 17 59-64 to rupee 18 17 59-64 Shanghai. 83 8| pence to yen • Hong Kong, 15 15 pence to yen ♦ Yokohama, pence to yen 24.58 14 14 Batavia. guilders 12.107 8.563 8.563 Warsaw, zlotys to -J3.38 26.31 26.31 ♦Determined by price of