DEFLATION

Evening Post, Volume CVIII, Issue 118, 14 November 1929, Page 12

DEFLATION

A "dvastic N i'aH in market values" is how Were and Son put the situation, and they give the following examples of movements in pi-ices of bank shaves since 31st August and 31st October last:— 31st Oct. 31st Avis. Bank. £ s. d. £ s. d. Adelaide 9 8 0 10 0 0 Aust. Bank of Com 1 10 0 1 lfl 0 Australasia 13 15 0 11 10 0 Co. Bkg. Co. of Sydney 23 10 0 27 0 0 Commercial Bank Old. .. 15 9 110 0 E.S. and A. Bank 780 880 National Band £3 8 15 0 880 Kew South Wales 47 5 0 5115 0 Queensland National .. 81? 6 915 0 "Union Bank 14 8 0 15 3 0 I'or Rome weeks now, stated J. B. Were and Son sliare prices have shown a marked downward tendency. The weakness has become accentuated, and bank shares in particular have had a pronounced fall, due principally to hardening money rates and the unfavourable trade outlook, and in addition no benefits can be expected from the new issues. The actual market valuation of. Australian banks at 31st October prices was about £81,500,000. This shows a drop of £2,500,000 from the total valuation only a ■week earlier and when compared with the value at the end of August last, two months ago (when the total was £90,000,----000), the drop is £8,500,000. In a second table the firm includes a Eelected and representative list of investment, stocks, in which the same marked downward tendency is also apparent. For those stocks listed, the actual decline in market values for the two months from the end of August until 31st October has been £11,700,000. The total market.valuation of the stocks selected at 31st August was £96,400,000; near the end o£ October it was £88,900,000, and actually £84,700---0-000 on 31st of last month. As the decline only for .the selected list shown is £11,700,000, and the decline in bank stocks £8,500,000, within two months, the extent of the decline in values of all securities quoted on the Stock Exchanges in Australia can be very readily realised. Only companies listed in New Zealand Exchanges are here shown in the fuller list prepared by Ware's:—

f Then there is the element of uncertainty in Australia, another factor to be 'taken into account in considering the state !bf the investment market. It would not be correct to say that confidence in the liiiture .is an outstanding feature of the {New Zealand market.

* 31st Oct. 31st Aug. ■" Stock. ■ £ s. d. £ s. d. Adelaide Steamship 0 19 G 111 Australian Gas C 15 0 7 3 0 Australian Glass ....'... 290 310 British Tobacco 2 4 0 2 9 G Burns Philp , 2 3 0 2 S 6 jCarlton Brewery 2 10 2 8 3 Colonial Sugar 53 5 0* i 57 12 6 Dunlop 1 5 3 1 9 3 fclee. Zinc, pref .■ 1 13 9 1 19 6 |Jo!dsbrougli Mort -2 2 D 2 7 G Holdens 14 9 18 3 Mount Lyell 119 3 2 5 0 Tooths and Co 2 5 0 2 15 3 yictoria Kyanza 2 2 0 26 3 •Wunderllch 119 0 2 3 0 .? *Bl dividend 25s.