WORLD ECONOMIC OUTLOOK

Press, Volume LXXXIII, Issue 25309, 8 October 1947, Page 5

WORLD ECONOMIC OUTLOOK

CONDITIONS IN UNITED STATES “SOME LIKELIHOOD OF A DEPRESSION ” Evaluating the capitalist world outlook. Professor E. E. Lundberg, eminent Swedish economist, in speaking at the New School for Social Research in New York on September 22, said there was some ’likelihood of a serious post-war depression in the United States. Professor Lundberg qualified his remarks by adding that he did not think the risk great because of the preparedness of the Government to intervene • and a more stable and careful attitude on the part of business than ever before,” reports the “New York Times.” Capitalism cannot return to the type that existed before the two World Weirs, according to Professor Lundberg, since we are bound to have more state control and government planning. He listed these four “danger” spots: The fear of a new war, the continuance of economic difficulties, a new severe depression or stagnation period, and a growing hostility to the capitalist system, especially by the working classes, “implying too much specialisation and planning,” so that the free-enter-prise' system gets too little living room. Another speaker at the gathering was Professor Sauvy, professor at the Institute of Political Science, Paris, who held that the fate of capitalism rests upon the success or failure of its main competitor, communism. Except for the possibility of war, he held, one must expect a slow evolution of both systems toward a new regime, but through different ways. If capitalism is to survive, he said, it must undergo “profound modifications.” Dr. G. F. Shirras, professor emeritus of University College, Exeter, England, teported that a surge of anti-communist feeling was spreading in Western Europe. In this country, he said, we must not follow dogmas but “realise the immense potentialities of free enterprise, management and techniques.”

RESERVE BANK RETURN

FURTHER DECLINE IN STERLING (P.A.) WELLINGTON, October 7. The Reserve Bank return for the week ended October 1 discloses a further fall in sterling funds of £1,813,642. Details are as follow, figures for the previous week being given in parenthesis:— Liabilities.—General reserve fund, £1,500,000 (same); bank notes, £46,928,201 (£47,134,624); demand liabilities: State £8,509,020 (£9,794,059); banks, £54.632,928 (£55,215,068); other, £529.064 (£439,627); liabilities in currencies other than N.Z. currency, £52,335 (£55,156); other liabilities, - £3,284,883 (£3,286,925). Total, £ (N.Z.) 115,436,430 (£117,425,459). Assets.—Gold, £2,801,878 (same); sterling exchange in N.Z. currency, £77,890,991 (£79,704,633); gold subsidiary coin, £44,017 (£40,802); advances to State marketing organisations, nil (nil); for other purposes, £30,005,436 (£30,106,934); investments, £3,868,093 (same); other assets, £826,016 (£903,119). Total, £(N.Z.)115,436,430 (£117,425,459). Proportion of reserve to notes and other demand liabilities, 72.912 per cent. (73.235 per cent.) BANK OF AUSTRALASIA’S SHARES RESTRICTIONS ON TRANSFERS Advice has been received by the Stock Exchange Association of New Zealand that the following announcement is being advertised in the press in London: — “Notice is hereby given that for the present transfers of the Bank of Australasia’s shares from either the British register or the New Zealand register to the Australian register will not be authorised." LONDON WOOL SALES CLOSING QUOTATIONS The Christchurch branch of the Bank of New Zealand has received the following cabled advice from its London office, dated October 6:— “Current quotations for‘wools of average condition at the close of the market

RABBITSKIN SALE LOWER QUALITY AND PRICES “The Press” Special Service DUNEDIN, Oct. 7. At the fortnightly rabbitskin sale today, an offering of approximately 40 tons was submitted to the usual attendance of buyers. Quality has rapidly deteriorated and there were very lew winter grades on offer. The demand was not keen and competition was fairly weak. This resulted in prices on the average being below those ruling a fortnight ago. The quality of ferret skins also deteriorated, and the market for these was also much easier. Following is a range of prices:—first spring bucks 76d to 96d per lb; first spring does, llld to 125 d; second spring bucks, 60d to 79d; second spring does, 106 d to 115 d; outgoing bucks, 114 d to 119 d; outgoing does, 127 d to 133 d; winter bucks, to 140 d; winter does, to 140 d; summers, 40d to 48jd; milky does, 38d to 47d; first milky does, 73d to 87d; stained does, 99d to 107 d; outgoing bucks, bloodstained, 104 d to 107 d; outgoing does, bloodstained, 115 d to 120 d; winter bucks, bloodstained, to 130 d; winter does, bloodstained, 130 d to 134 d; third broken, 44d to 46d; second broken, 69d to 71d; first broken, to 80d; third black, 35d to 40 Jd; second black, 60d to 80d; winter black, IOOd to 140 d; third fawn, 30d to 59d; second fawn, to 50d; first fawn, 80d to 82d; hareskins, 20d to 30d; horsehair, 483 d to 494 d; first large ferrets, to -6s each: first medium ferrets, to 3s; second ferrets, 6d to Is; first white ferrets, 4s to ss; second white ferrets, Id to 3d; first stoats, Us Ud to 13s 4d; second stoats, 6s; first red deer, to 4s 3d per lb. The next sale is listed for October 21.

STOCK SALES ASHBURTON There was a further depreciation in the ruling rates at the Ashburton stock sale yesterday, when values were estimated to be down by about 2s a head for all except some shorn sheep, which sold ■ at about last week’s prices. Wethers realised up to 37s for lightweights, from 38s to 40s for mediumweights, from 41s to 43s 6d for prime quality, and from 44s to 47s Id for extra prime quality. The prices were for shorn lines, which predominated. J. Gregory (Seafield) sold shorn wethers at from 44s Id to 47s Id, while Hunter Morris (Winchmore) sold three in wool at 63s Id. Ewes made up to 32s 6d for mediumweight, from 34s to 38s for prime quality, and from 39s to 45s lOd for extra prime quality. Four were sold on account of Lftmter Morris at the top price. Lambs sold at 365, 395, 34s 7d and 33s 6d. A fat cow; brought £l4 2s 6d. RANGIORA There were small yardings in all sections at the weekly stock sale at Rangiora. Prices were as follows: Sheep.—Ewes and lambs, 26s to 28s 6d. Cattle.—Dairy cattle, £8 15s to £l7 10s. Pigs.—Stores, 39s 6d to 435; weaners, 35s to 43s 6d. LORN EVILLE (P.A.) INVERCARGILL, October 7. Prices in the fat sheep section at Lorneville were good. The first two fat lambs of the season sold at 48s and 40s. The supply of wethers was the shortest for many sales and resulted, in butchers turning their attention to better-class ewes which showed an appreciation of about 5s a head. Medium and inferior ewes remained unchanged. Good medium weight wethers made 65s to 68s 6d, Hfeht-weights 56s to 625, good maiden ewes 60s. to 655, good young ewes 53s to 58s, good aged 4ss to 50s, medium-weights 33s to 38s, unfinished 20s to 27s 6d, good shorn ewes 29s to 335, medium 25s 6d to 275. There was again a full yarding of fat cattle. Prime heavy-weight bullocks made to £35 10s, good medium-weight £26 10s to £2B 15s, light-weights £22 to £24; medium-weight heifers £23 to £24 10s, light-weights £lB 10s to £2l, small £l4 10s to £l6 10s; prime heavy cows to £25, medium-weights £l7 10s to £2O 10s, lighter £l5 to £l6 10s, unfinished £9 10s to £ll 10s.

d. d. Merinos— Super, 60-64’s .. .. 39 to 42 Inferior • • .. 26 to 30 Halfbreds— * 56’s .. .. .. 291 to 33 50-56’s .. .. .. 27J to 31 Crossbreds— 50’s .. .. .. 231 to 261 48-50’s .. .. .. 211 to 24 46-48’s .. .. .. 201 to 23 44-46’s .. .. .. 191 to 211