COMMERCIAL

Hawke's Bay Tribune, Volume XXI, Issue 13, 29 December 1930, Page 9

COMMERCIAL

LONDON MARKETS STOCK EXCHANGE IN CHEERFUL MOOD TRADE review (United Frees Aesoolation-By Cablel/osyright.l London, Dec. 27.. The Stoefc EschUnge closed for the Christmas holidays in cheerful vein, the markets having received an unexpected fillip in the reduction of New York rediscount rate to two per cent., which is the lowest on record. It is generally believed the reduction was (nude with the idea of assisting American conditions and checking the decline in stocks, which recently have been seriously affected by bank failures. The reduction had an immediate effect on the Stpck Exchange, all British funds advancing sharply and the movement spreading to many other sections. Unfortunately Australian Governments did not participate, their tendency being downward. Other Australian securities also showed weakness, which was not surprising in new of decreased profits. An analysis of the balance sheets of eight leading Australian companies shows that net profits fn 1930 were £1,190,843, compared with £2,053,859 last; year, a decrease of almost 42 per cent. The “Economist’s review states that trade again is far from cheerful reading. The reviewer says the faint promise of greater stability held out by some October-November trade statistics once more ended in disappointment. Wholesale pneces, after a period of six or seven week® of relatively greater stability, began to fall with renewed precipitancy at the end of November. It seems highly probable that New Year’s Day will coincide with the return of the “Economist” index number of the pre-war level. Unemployment returns lately have continued to grow, in contradistinction to the normal pre-Christmas tendency. The last available weekly figures show 2,31X>,962 unemployed. Overseas trade, which in October showed of a little improvement, receded again, the following month. Here too there is no sign that the general trend of the curve has ceased to be downwards. After this dismal foreboding it is pleasant to read in the “Financial Times” that a definitely brighter prospect opens out before the tin industry. The Producers’ Association announces that 90 per cent, of the world’s output has bound itself to a definite agreement, under which each country’s output will be restricted to a specified percentage. THE BUTTER MARKET The butter market had quite a good little spirit of activity during the three business days of this week and prices firmed a shilling to two shillings all round. One factor contributing to the improvement was the unfortunate loss of the steamer Oberon, as she was carrying over 3,000 cases of Finnish butter, and the absence of this from northern markets had a hardening effect. The consumptive demand throughout the country remains good. . The Empire Marketing Board’s report says that stored stocks, which six months ago amounted to nearly 1,200,000 boxes, is now reduced to 276,000, which is less by approximately 91,000 than the stocks of a year ago. Importers are gratified at the success of their propaganda function. It received most publicity in the newspapers and pictures showed films all over the country for several days, so millions of people must have learnt that Australian and New Zealand butter is obtainable here. This should certainly stimulate the demand. AUSTRALIAN EGG SEASON The Australian egg season is approaching the close, the last shipments being due about three weexs hence. The season has been a record one so far as quantity is concerned, but unfortunately it seems likely to furnish another record in respect of low prices. Owing to heavy supplies from all sources, values steadily declined, apart from a short-lived advance when for delayed deliveries, and to-day’s prices of 12/- to 14/- may not be obtainable till the last arrivals are cleared, as European production is large owing to the prevalence of mild weather conditions ou the Continent and in Britain.