STOCKS IMPROVE

Dominion, Volume 24, Issue 80, 29 December 1930, Page 9

STOCKS IMPROVE

British Trade Review PRICES AGAIN DROP (Rec. December 28,,5.5 p.m.). London, December 27. The Stock Exchange closed for the Christmas holidays in cheerful vein, the markets having received an unexpected fillip in the reduction of the New York re-discount rate to two per cent., which is the lowest on record. It is generally believed that the reduction is made with tlie idea of assisting American conditions and checking the decline in stocks which recently have been seriously affected by the bank failures. ■ The reduction had an immediate effect on the Stock Exchange, all British funds advancing sharply and the movement spreading to many other sections. Unfortunately, the Australian Governments did not participate, their tendency being downward. Other Australian securities also .show a weakness, which was not surprising in view of the decreased profits. Australian Companies. An analysis of the balance-sheets of eight leading Australian companies shows that the net profits in 1930 were f 1,191,843, compared with £2,053,808 last year, a decrease of almost 42 per cent. The "Economist’s Review” states that trade once again makes far from cheerful reading. The reviewer says that the faint promise of greater stability held out by some October-Novem-ber trade statistics, once more ended in disappointment. Wholesale prices, after a period ot six or seven weeks of relatively greater stability, begari to fall with renewed precipitancy at tlie end of November. It seems highly probable that New Year’s Day will coincide with the return of the economist index number to pre-war level. Unemployment returns lately continued to grow in contradistinction to the normal pre-Chnstmas tendency. The last available weekly figures show 2,306,962 unemployed. Downward Tendancy. Overseas trade which, in October, showed signs of a little improvement, receded again in the following month. Here,too, there is no sign that the general trend of -the curve has ceased to be downward. . After this dismal foreboding it is pleasant to read in , th . e -, Times” that a definitely brighter pros nect opens out before the tin industry. The Producers’ Association announces that 90 per cent, of the world’s output has bound itself to a definite agreement under which each country's output will be restricted to a specified percentage.

BUTTER PRICES Improved Market Values SUCCESS OF PUBLICITY (Rec. December 28, 5.5 p.m.) London, December 27. The butter market has had quite a good spirit of activity during the three business days of this week,, and prices have firmed from a shilling to two shillings all round. . One factor contributing to the improvement was the unfortunate loss of the steamer Oberon, as she was carrying over 3000 cases of Finnish butter, and the absence of this from the northern markets had a hardening effeet. The consumptive demand throughout the country remains good. The Empire Marketing Board’s report says that stored stocks which six months ago amounted to nearly 1,000,200 boxes are now reduced to 276,000, which is less by approximately 91,000 than the stocks of a year ago. Importers are gratified at the success of their propaganda function in connection with the arrival of the “Empire butter fleet.” It received much publicity in newspapers, and cinemas showed films all over the country for several days, so millions of people must have learned that Australian and 'New Zealand butter was obtainable here. This should certainly stimulate the demand. EGG VALUES DOWN Good Continental Season (Rec. December 28, 5.5 p.m.) London, December 27. The Australian egg season is approaching its close, the last shipments

being due in about three weeks’ time. The season has been a record one so far as quantity is concerned, but, unfortunately, seems likely to furnish another record in respect of low prices. Owing to heavy supplies from all sources, values have steadily declined. Apart from a short-lived advance for delayed deliveries, to-day’s prices of from 12/- to 14/- may not be obtainable till the last arrivals are cleared, as the European production is large owing to the prevalence of mild weather conditions on the Continent and in Britain. WISER BUYING London Shopping Survey “EMPIRE CONSCIOUSNESS” London, December 26. A Christmas survey of the shopping districts discloses an appreciable growth of Empire consciousness largely attributable to the national trade mark and Empire preference movements. All the big stores featured Empire foods, wines and tobaccos.