FALL IN LONDON FUNDS

Press, Volume LXXV, Issue 22877, 25 November 1939, Page 11

FALL IN LONDON FUNDS

BANK PRESIDENT’S VIEWS

EFFECT OF FALL IN EXPORT

PRICES

- “New Zealand has faced a continuous fall in London funds mainly as a result of the slump in world prices for primary products. In a country whose prosperity depends fundamentally on its rural industry the effect of low export prices is more farreaching than in a country with a more balanced economy,” said Mr R. W. Gillespie, president of the Bank of New South Wales, at the annual general meeting of shareholders. “The economic policy of the New Zealand Government has been based on an attempt to ‘insulate’ the Dominion from external adverse influences. The opinion is widely held that to some extent this policy was successful: internal business activity remained buoyant and employment high, but exchange control and import restriction did not stop the decline in oversea resources. “Primary producers had a difficult year due partly to unsatisfactory seasonal conditions- and rising costs. In the coming year, however, Great .Britain’s purchases 'Should ease the situation greatly. New Zealand and the War

“War organisation is taking place with commendable rapidity,” said Mr Gillespie. “New Zealand’s economic assistance, the basis of which is her export of foodstuffs and essential war materials, will prove much stronger than in 1914-1918." He added that the restrictions which were imposed to stop the decline in London funds might be useful in ensuring that the whole of the country’s productive effort was directed to assisting Great Britain. This war effort, it is stated, “may require the control and diversion of resources to meet the essential requirements of the Allies.” Speaking of Australia’s war aims, Mr Gillespie said that this diversion “will involve a decline in present standards of living, since maintenance of these may not be consistent with the most vigorous war effort." Australia’s War Effort

“Australia,” said Mr Gillespie, “enters the'war with a strongly organised economy.” She was able to overcome the effects of low export prices without recourse to stringent and economically unjustifiable restrictions. The expansion of central-bank credit and the small increase in Government spending maintained internal activity at a level only slightly lower than last year. The resilience of the Australian economy in the face of adverse external circumstances and the effects of widespread drought and bushflres were shown by the slight rise in retail trade and buoyancy of wholesale trade, factory production, and building. London funds declined during the •year, but the movement •at no time gave cause for anxiety and, with Great Britain’s purchase of Australian primary products at stipulated prices, their position must be considered sound. “Australia,” said Mr Gillespie, “is learning the techrtique of cushioning the organisation of production from the effects of external influences of a temporary nature.”

GRAIN AND PRODUCE

BETTER CROP PROSPECTS

The rain which fell in most parts of Canterbury this week has relieved the anxiety which was being felt for the welfare of the crops. The fall was a steady one, and was the more helpful because it was unaccompanied by wind. If normal weather follows over the next few weeks, the prospect of a reduced, wheat- yield should disappear. Growers of spring wheat are particularly glad of the fall, for although their crops have had a bad start they should now be' able to make fair progress. The Government’s decision to discontinue the certification of seed wheat was a big disappointment to farmers, but some hope is taken from the assurance which the Director of the Fields Division of the Department of Agriculture (Mr R. B. Tennent) gave to deputations that he would recommend continuance of the present procedure for at least another year. Some overseas inquiry for red clover has been received in Christchurch markets lately, but little business has yet been completed. Trade generally is very quiet, and there have been no alterations in ’prices. Quotations The following quotations to farmers on trucks at country sidings, unless otherwise indicated, are supplied by the president of the North Canterbury Grain, Seed and Produce Merchants’ Aconniatiftti Wheat—Milling, f.0.b.. Tuscan 5s lid: Hunters 6s Id; Pearl 6s Sd. (Final payment of 3d a bushel on all wheat at the end of vear.) Oats—A Cartons 2s 9d to 3s, B Gartons 2s fld. Algerians 3s £o 3s 9d, Duns Ss 6d to 4s 6d. Ryegrass (good germination)— Perennial up to 6s fld (nominal). Italian up to 4s to 4s 6d (nominal). > Cocksfoot—od to 7d (nominal). White. Clover—ls to Is 3d per lb. Red Clover—Old season’s. 4d to 6d per lb: new season’s, 7d. Chaff—£4 5s to £4 7s 6d a ton. Barley—Mailing 4s 7Jd, feed 3s to 3s 6d a bushel, according to quality Bran —Large £4 15s, small £5 ss. Pollard—Large £6 5s a ton, small £6 155."

ASHBURTON Following the recent rains, Ashburton grain merchants report a strong inquiry for ryegrass; clovers, rape, and turnip seeds. Stocks of all lines of grain and seeds are on the light side. Algerian and Dun oats are in strong demand, and Gartons are also required. Most lines of wheat have now been dealt with, and potatoes are off the nicirksti The following are prices quoted to farmers, on trucks at country stations unless otherwise indicated, sacks extra, free of commission:—Wheat —Tuscan 5s lid. Hunters, 6s Id.- Velvet or Pearl 6s 3d, f.o.b. (3d bonus at end of season). Oats—A grade Gartons 3s, B grade 2s Bd> Algerians 4s, Duns 4s to 4s 6d (according to quality). Grass Seed—Perennial 6s 3d, Western Wolths and Italian 4s 6d to ss, cocksfoot 7d per lb. white clover Is 6d, red clover 7d per lb. . O.S Chaff—£4 5s a ton. Partridge Peas—No. 1 grade, 8s 6d.

SALE OF RICCARTON PROPERTIES i MESSRS BAKER' BROS. (Estate Agents), LTD.,. 166 Manchester street, report having sold on account of the trustees, Estate A. B. Tench, fiveroomed bungalow in Maxwell street, to Mr M. Humm. ALSO On behalf of the Estate H. E. Cox, five-roomed bungalow In vPicton avenue, to Mr M. D. Joyce. —6