STOCKS AND SHARES

Hawera Star, Volume L, 25 August 1930, Page 9

STOCKS AND SHARES

LATE EDITION

LONDON TRADE REVIEW AUSTRALIA’S FINANCES DECISIONS APPROVED. (United Press Associntion-By Electric Telegraph Copyright;. Received U a.m. to-day. LONDON, Aug. 23. Not for years have Australian i* ’ i nffniis received so much <itSS in K F«S r« SS „ dm-ins V the Melbourne the decisions as evidence of a nationwide common policy. The appointment of a committee representatives of the States as well as the Commonwealth to carry out the d eisions is welcomed as proof that the problems are ffoing to be tackled earnestly and effectively, leading to a steady if gradual movement towards Wnuilibrium. In thei meantime despite Umei wild alarmist Press cables from Australia responsible quarters have never doubted that the recently consummated exchange pool ensures absolutely due provision for debt services. Mr Niemeyer’s approval ot tne Melbourne resolutions has naturally rrjven added value to this and leading authorities are convinced that if the people will only accept the inevitable sacrifices entailed by the necessity for reducing costs of production there will be oreater confidence here in the Australian situation than there has been for some time past.

GILT EDGEDS DEMANDED. Further liquidation of industiial shares and steady for gilt edgeds have been features, of the stock exchange during the past ueeK, The firmness of gilt edgeds is not stuprising. It is a corollary of bad tiade. P Cheap money has been fostered by a holiday** rest in the new issue maiket and a shortage of floating stock. is practically the peak °‘ J ho g season circumstances ivhicti nave Sn plainly reflected in the restricted character ‘of dealings stocks have shared with- othei «d edgeds a steady improvement the the week and the publication o Melbourne. Conference- resolutions was only an additional contributing factor to a. movement which had already bein favour of trustee securities, on - Tng chiefly to depression m nidus-4-rin I c The “Financial News,” in advice to investors who regard the present as an opportune moment to weigh up the chances of earliest improvement an trade, points out that- a. recovery will first come from the countries providing, primary materials and it will be speediest in countries not embairassed W political: unrest or involved m national depression. In the- list of countries which he suggests as .likely ultimately to offer a field for profitable investment, the writer recommends them the following order : Argentine, 'Caiiada, South Africa, Chili, New Zealand, Brazil. France. Sweden tinted States, Denmark, Italy, and Germany, significantly excluding Australia en+irelV' WOOL PRODUCTION. Bradford regards as opportune the publication this week of Dalgetys estimate of wool production in Australia, and New Zealand for the season 192930 as it will provide data making calculations for the current season. The position is that 3,582,000 bales of Australian and New Zealand wool were absorbed in 1929-30, an increase of 21,123 over the previous year. The “Economist”, says that an alarming fact in the figures is that the average price realised for Australian wool of the last season was ]o‘d and for New Zealand it was 81 d. “It has been frequently said 12d to 15d should be the minimum to enable Australian growers to cover costs and a shilling similarly for New Zealand.” continues the “Economist. “It is overmuch to expect that values will recover as much as this for, while it is time that no more wool is being produced than the world’s manufacturing machinery can absorb, it is equally true that there will be a big expansion of consumptive requirements which will set all machinery going full time and thereby get ahead of supplies and lift values.” The Australian Dried Fruits Board last week sold 1350 tons which is one of the biggest week’s sales for a long time. It is believed that during the next few weeks trade will be much better than in June and July and prices average will be slightly lower than last year.