RAW MATERIALS

Evening Post, Volume CXX, Issue 115, 11 November 1935, Page 12

RAW MATERIALS

fliy Telegraph.—Press Assn.—Copyright.) LONDON, November D. Friday's closing prices for the following raw- materials were as follows; those for November 1 being shown in parentheses:— ' . • ■ l -

Cotton.—Liverpool quotation, good American middling, spot 6.47 d a lb (6.45 d); December delivery, 6.31 d a

Rubber.—Para, 6£d a lb (5 7-8 d); plantation smoked ribbed sheet, 6.15-32 d a lb (6 3-8 d).

Jute.—November-December shipment new season's Indian jute. Dundee quotation, £19 15s a ton (£2O 7s 6d>. Hemp.—November-January shinment, £23 a ton. . Copra:—November-December shipment, South Sea, to London or Rotterdam, £12 10s a ton (£l2 17s (id)smoked, to" Marseilles or Genoa £11 15s a ton (£l2 . 10s); • plantation, Kabaul, to London or Rotterdam, £13 15s a ton (£l4).

Linseed. 0i1.—£26 15s a ton (£27 ss).

Turpentine.—47s a cwt (47s 6d)

DEARER MONEY

MARKET IN AUSTRALIA

PROSPECTS OF NEW LOANS

"The market does not appear to be in a condition favourable for the flotation of a new loan," remarks the National Bank of Australasia in its monthly summary. The bank points to the firming of rates over the past few months, and states that in Victoria first-class municipal loans could be placed at 3i to 3J per cent, in the closing months of last year. At the end of June last they were from 32 to 3 7-8 per cent., and are now nominally 44 per cent. The market for fixed mortgage loans.has been more stable, but, for attractive business, the minimum rate has advanced from 4 per cent, early in the year to 4J per cent. The movement, in rates is reflected in a fall in stock exchange prices of Commonwealth consolidated loans, resulting in an increase in the average net interest return, including redemption. Bank interest , rates on both deposits and advances remain unaltered. NEW LOAN EXPECTED. The market does not appear to the National' Bank to be in a condition favourable for the flotation of a new loan, but Press reports indicate that a public issue in the near future may be authorised by the Australian Loan Council at its next meeting early in November.. There is as yet no indication of the amount of the suggested new loan, but it is expected that it will be substantially below that of the last loan, floated in June this year, when £12,500,000 was sought. On the present price level of Government stocks, the interest rate would have to be well ahead of the net return of £3 8s 5d per cent, obtainable on the £12,500,000 loan floated in June last. The rise in prices of export products, and the improved production prospects of primary industries, may, however, lead to some easing of the market during the next few weeks, and to a more.favourable reception to |an issue than it would receive at the (present time. NEEDS FOR BORROWING. Public loans, aggregating £50,000,000 were floated locally by the Australian governments during the past two financial'years, and it is questionable whether either the capacity of the market or the general state of public opinion is favourable to continuance of borrowing on that scale. Even if the amounts could be raised without unfavourable reactions on the money market, the need for large-scale borrowing has diminished considerably over the past year or two, and the outstanding requirement of, the present time' is that private enterprise should be encouraged to proceed further with its legitimate task of absorbing the unemployed. The rise in prices of primary products entering largely into Australia's export trade cannot fail to bring marked benefits to Australia. Secondary industry and trade continue to show signs of increased activity, while the linancral position, particularly the prospect of recovering last year's leeway in reserves held in London, has been strengthened. Seasonal conditions m all the States are now more promising of large outputs of rural products than earlier in the year, while in Victoria they are, on the whole ! classed as exceptionally good