SOUND MARKETS

Evening Star, Issue 21945, 4 February 1935, Page 11

SOUND MARKETS

LONDON STOCK EXCHANGE UNEASY WEEK SUCCESSFULLY NEGOTIATED BUTTER PRICES HARDENING Press Association—By Telegraph—Copyright LONDON, February 2. The Stock Exchange passed through a most unCasy week in a manner which affords a splendid illustration of the underlying soundness of markets. The principal cause of the anxiety was a disturbance on the Baltic Exchange and in commodity markets, the first resulting from the failure of the Strauss Company, with liabilities amounting to nearly £19,000,000. The news of this disaster naturally had a depressing effect, but it was soon ascertained that the losses had fallen principally on big hanks and companies which were able to bear them. Following this came the news of difficulties in markets for two such widely diverse commodities as shellac and pepper. Meetings of bankers and others interested in these affairs were being held, and it is generally expected that matters will be arranged without untoward results. The la6t disturbing element was th® slump in the Yellowdine, group of mines in West Australia following a disappointing cablegram which damped the ardour of speculative operators in more than one market. But after two - days’ excitement, with considerable panic, the sell-, ing market grew calmer, and yesterday there was a general steadiness in West Australians. BUTTER. The butter trade continues to improve. Prices have steadily hardened until to-day the choicest salted New Zealand is fetching 92s per cwt, Australian 90s, which is 15s higher than January, and 20s higher than the beginning of December. Several causes have contributed to this satisfactory state of affairs. The first is the continuance of a strong consumptive demand which resulted in a reduction of cold stored stocks to hbout 400,000 boxes, or, roughly, about one weak's consumption. Another bull factor in the market is the fact that New Zealand is shipping considerable quantities to the United States, which country has also been buying here. Then there was the news of a severe drought in New Zealand, with a consequent heavy reduction in butter production. importers, therefore, are taking a very firm attitude. The higher values will cause retailers to Advance their prices by a penny or twopence per lb, but it is not expected that this will mean any serious reduction in consumption. EGGS.

The egg market is still depressed. A brief cold snap gave hope of some improvement, but spring-like weather quickly returned and prices remain at their recent low level, Australians ranging from 7s 3d to 9s, according to weight. NATIONALISATION OF BANKS •THE TIMES’ CRITICISES LABOUR VIEWS LONDON, February 2. Speeches by chairmen, at tlnj meetings of the “ big five ” banks have, as usual, been read with much interest, particularly the remarks made in respect of the nationalisation campaign. Commenting editorially thereon, ' The Times ’ says: “ There can hardly he a competent critic familiar with the history of central banking who would

regard nationalisation, as understood by the Labour Party, as anything short of a calamity. The subordination 6f monetary policy to the exigencies of party politics would inevitably lead to immediate disaster, and who could guarantee that the protagonists of Socialism, once in power, Would be immune -from such temptation ? Nor would the nationalisation of joint stock banks provA any less damaging to the interests of the nation, for what motive can lie behind this clamour for nationalisation except a desire to effect violent changes in the manner in which these institutions conduct business-changes Ti’hich would definitely be directed to political ends?