COMMERCIAL

Grey River Argus, 23 September 1936, Page 3

COMMERCIAL

(Per Press Association.) CHRISTCHURCH, September 22. Sales: GoldsboiOugh Mon. 33s 3d; N.Z. Breweries 52s 6d. 52s 7d; Booth McDonald (pref.) 2s 6(1; Broken Hill ■Pty. (ex rights) 75s 9J; Colonial Sugar £42 17s 6d; Dunlop Rubber (cum. div.) 18s 2d. Repoiccd; Four per cent. Inscribed 1946-19 £1.05 5s ('ate sale yesterday); N.Z. Farmers’ Co-op. 41 per cent. Stock 10/10/10 £93. * September 22. Sales reported: G. J. Coles S2s 3d; Shillings Ltd. 17s. After call: Mount Lyell 2!> s 6d; Mount Morgan 13s 2d. WELLINGTON, September 22.

Sales: Mt. Morgan 13s 3d, 13 Id; Selfridge's (old) 26s 9d; Comm. Bank ISs 3d; Hume Pile 19s 8<1; Broken Hill 7,65; Claude Neon (Victoria) -13 s (id; Wilson’s Cement 36> 6d; Burns Philp 72s 4d. AUCKLAND, September 22.

Sales (combined cat's): Broken Hill (rights) 2s 4cl. 2s 2d; Ml. Morgan 13s Id; Dunlop ISs 2d; Selfridge (old) 275; Newspapers 40s; Breweries 52s 6d; Martha ISs 41d. LONDON/September 21.

Bradford; Merino tops steady. Consumption well maintained, but buyers cautious. Considerable business ‘in crossbred tops and yarns, the latter hardening. London wool sales; 10.046 bales offered, including 3887 New Zealand; 7514 sold. Excellent selection sold active'y to Home trade and the Continent at full current rates. Withdrawals w.ce large among the speculators’ lots and greasios, owing to the firm limits. New Zealand greasy crossbred, harder; top 15d —average 14U1. The wool tiade is pleased at the ’’avourable opening of the London sales, especial’y as some good buying has been d'Hie on German account. France also i< operating, but Russia and Ttalv thus far have been out of

the market. Opening values are being maintained. Whil’e the sales have not resulted in an advance at Bradford, tliev have provided a tonic. Buyers, however, ar, l inclined to wait and see whether values in Australia remain firm, despite the absence of Japan, who at present is paying 1J to 2d Irgher for South African than any other competitor can afford to pay. It remains to bo seen how long Japan will be able to continue such uneconomic buying. If the Cape wools continue high, some Bradford users may switch over to Australian. Gold 137 s -Id; dollar 506 5-8; franc 76 15-16. British Market N.Z. BOOSTING OUTLAY. SUGGESTED BY BRITISH CAPITALIST. WELLINGTON. September 22. “'There are more people employed in Great ‘Britain at 'the present time than ever before in her history, and that is an important thing to New Zealand products,” said Sir James Steel Maitland. “At the same time, there is a large number of unemployables, even more than before the war. but that applies to al! countries. Even if every worker were required for three shifts a day, there would be some who 'would be unable to work. However, the number of employed in < Great Britain meant increased buying i power to the advantage of producers, i who sent goods from overseas.” i

W;h}'le New Zealand had a good market in Britain, it could be improved. New Zealand should take a leaf out of Canada’s book, he said. Canada went to all the great exhibitions, and put up a real good stand'. New Zealand would also have a standbut it was not done on the scale of Canada. Advertising wav expensive, but it bad to be done. Nothing would sell itself. It -was up to the New Zealand Government, in co-operation with the producer, to tell the British consumer about: New Zealand products. New Zealand had trouble with the adulteration of tier butter, and a strong stand should be taken about that sort of thing. England was the world’s worst salesman abroad, and it appeared that New Zealand lad inherited' something of that British manufacturers could still be found trying to sell in £ s. d., where British currency was nof known by the average individual. lie was not connected with produce in tiny way, but be considered that provided supplies were not grossly in excess of market requirements, values were not likely to go down. A few years ago there was over pto.luc.t ion, linked up with undei-consumption, but us the general public got confidence again consumption tended to teach the level of prodi'ctmn. The general trend was for staple commodities to art together, cither up o" down. Consequently. provided there was not n glut of an import:'.el commodity such as wool, the pieces of all basic products would w.,ik together, and as the recent trend had' been upward, the price!’ of New Ze'i'and products should remain firm, provide! no special set of rircum.-dances appeared. PRICE OF GOLD. LOWER TREND PERSISTS. 'fhe continued fall in the price of gold in recent weeks has given rise to some speculation regarding the outlook. Mining interests (says the New Zealand Her,aid) are frying to decide whether the future trend will be upwards or downwards, and there is room for considerable divergence of opinion. The present price, about £6/17/6, is the. lowest for two years. Extreme quotations in fhe past three years compare as follows: 1934 1935 193(> £ s d £ s d £ s d Highest 7 3 3 7 9 4 7 1 4 Lowest 6 G 8-J 6 19 9-1 6 17 .51 The price is fixed by the day-to-day relation of the pound sterling to francs and dollars. Recently sterling has been appreciating and the sterling price of gold has shown a corresponding fall. Should France devalue the franc it is assumed that the stcrling-doltar exchange will become the yardstick. The price, in turn, depends on the United States maintaining its present gold buying rate of 35 dollars an ounce. An appreciable fall in the gold price would deal a heavy blow to expansion in the mining industry, and much of the prosperity which has been built on the higher price would be lost. The effects would be felt severely in the British Empire, which is an important producer. Realisation of this has prompted the belief that Britain will endeavour to hold :i, price of about £7 an ounce. If this is so, the current

decline may be only temporary. The use of the Exchange Equalisation Fund may restore the exchange rates and so reverse the movement. JAPANESE WOOL PURCHASE PROGRAMME. TOK 10, September 20. According to the “Yomiuri Shimbun,” the Wool Imports Control Association approved a plan to import quotas, providing for the purchase of 180,000 bales of wool from South Africa, 80,000 from New Zealand ami 40,000 from South America. TASMAN SEA SHIPPING. N.Z. SUBSIDY INDICATED rPer Press Association.') WELLINGTON, September 21. Plans to aid the Mercantile marine, and the part it played in the lives of New Zealanders, were outlined by the Minister of Marine (Mr Fraser), at a social function organised by shipping interests. The Minister emphasised the fact that New Zealand was a maritime country, and even those who did not go to sea had an important part to play in carrying out the great maritime industry. The problem was the Tasman, and that could be solved. Mr. Fraser hoped that it would be possible to eliminate cut-throat competition among modes of transport. Another way in which the Government and the people of the country could aid the mercantile marine, continued the Minister, was by making the shores safer. Recent events had impressed this need upon the country, and the Government had laid down a programme to provide radio beacons and other safety devices. GERMAN SYNTHETIC TEXTILES. (Aust. & N.Z. Cable AsraO LONDON. September IS. The Berlin correspondent of the “News-Chronicle” says that, in accordance with Herr Hitler’s plan of self-sullieveney. a decree prohibits the manufacture of e'othes and other textiles from natural material, and re-, quires a mixture of synthetic wool or cotton to the extent of 20 to 30 per een t. SYDNEY WOOL PRICES GOOD (Received Sept. 22 at 10.30 p.m.) SYDNEY, September 22. At to-day’s wool sales, 12,155 bales were offered, 10.525 being sold, as well as 747 bales privately sold. All of the best lines of fleece and skirtings were firm to-day, with wider competition on the ordinary and inferior wools. Yorkshire and Germany were the principal buyers, with good support from France. Greasy merino made 21d. HOME EUTTER MARKET. LONDON, September 20. The weakness in butter has continued, and a further sharp decline in values has resulted from forced selling on an unsupported market. Continental descriptions similarly have been affected, and the feeling in Tooley Street is now definitely pessimistic. Recovers- in flic near future is not expected. Cheese is disappointing in sympathy with butter. Tt is possible to buy Now Zealand white a! Is be|!ow quoted prices. Tlierle is little

chance of any speedy alteration in the situation. LONDON MONEY MARKET. LONDON. September 20. A crop of unfavourable rumours es|.>eci;i]ly connected with labour troubles in France an,] other, international factors. lias depressed the Stock Exchange., which at pres'nt i in such a sensitive eondiUon that i-wn the flimsies] reports exercise an undue nflir.'iK'e. The public as a whole is km'liing out the markets, where there is a tendency io drift, though tin' undertone is stmidy. Most city financiers believe that France is moving nearer to devaluation. The Government is finding it difficult to borrow ini era:' 'ly, an,] for this reason U reirewing its inflationary bor.rowing.from the Bank of France. Funds are again finding their way abroad, and are benefiting the gilt-edged securities market in London 'wh'«'h has been further strong!hened by the continued plethora of idle funds. Tndust rial’st have been somewhat neglected, and gold shares are patchy.