MONEY AND MARKETS

Evening Star, Issue 21637, 5 February 1934, Page 12

MONEY AND MARKETS

LONDON'S REPOST RUSH FOR GOLD MINING SHARES , Pres* Association— By Telegraph—Copyright. LONDON, February 3. The Stock Exchange during the; past few days has been mainly centred 1 in the gold mining section, which, under the influence of the meteoric rise in the price of gold, has been enjoying another boom, especially in Kaffirs, some > of which have risen phenomenally.- ‘ Australians have also benefited considerably. Gilt-edged stocks have developed strength owing to favourable revenue returns, and as there is still much money- seeking investment in them firmness seems likely to be maintained. AUSTRALIAN LOANS. Dominion stocks generally are well maintained, and a good result is anticipated with the next Australian conversion loan, which cannot bo far distant. The ‘ Financial News ’ suggests that Australia might proceed at once to convert her loans redeemable in 1935-45. >Vhen these are out of the way there will be a gap of five years before any more conversions can be carried out. Australia therefore might well feel that if she could make certain of converting £62,422,000 of the 1935-45 issues she could look ahead for five clear years. She would have to offer some small inducement to holders to accept convex - sion now, and would, of course, have to pay the full present interest to the date when the loan becomes callable. THE AMERICAN PUZZLE. The American gold policy is puzzling financiers. Nobody seems able to say what the result will be. As the ‘ Daily Telegraph ’ says, there are two questions no one in New York or London can answer. One is: How long will President Roosevelt be content to draw gold to America ? Clearly he does not want it. To take gold to America is to take coals to Newcastle. The other question is whether American rumours of imminent conversations between the London and Washington monetary authorities have any truth, and, if so, whether there is any chance of a temporary agreement on that point. London opinion is sharply divided. APPLES. Fruit traders generally are taking a fairly hopeful view of the forthcoming apple season, for, although the latest information points to the total shipments from Australia and New Zealand again being not far off 6,000,000 boxes, there are . several factors in the . situation which seem to indicate that we •hall not see a, repetition of last season’s disastrous slump. In the first place, about three-quarters of the expected Australian exports are scheduled for shipment by the end of April, so they should arrive here before there is any risk of meeting competition with our soft fruits, which had such a serious effect on the market last year. Another satisfactory factor is the elimination of many poorer sorts of apples and plain grade fruit, which have always had a depressing effect on the market. Another, favourable point is that stocks of apples stored ,in America are considerably lighter than a year ago. WOOL OUTLOOK. Describing the wool outlook, Messrs H. Dawson and Sons- write that the slight reaction in the London sales from the peak values is , healthy and should not cause any disturbance of confidence. The consumption of, wool, continues apace without any inatefial alteration in the machinery activity in, the consuming centres. Wool has been at an extraordinary low figure for practically three years, and has definitely stimulated a demand for itself. The major proportion of the advance has been in a measure corrective, but it must be digested throughout all sections of the industry. The competitive power in other textile commodities, including silk, which has dropped 4s a pound in the last six months, will be felt more keenly now that wool has reached a higher level. Botany tops are selling at eight times the value of American cotton, which, together with rayon, produced on highly scientific lines at a steadily increasing pace, places the manufacturer in a difficult and complex situation. The world’s stocks of cotton total 41,000,000 bales. The carry-over of American cotton is almost equal to a full crop.