SUMMARY OF BRITISH CONDITIONS

Hokitika Guardian, 17 February 1930, Page 3

SUMMARY OF BRITISH CONDITIONS

AUSTRALIAN SECURITIES RECOVER,

LO-NDON, February 9.

Conditions and prospects on the Stock Exchange are far more favourable than they have been, for some time. Several factors have contributed to this improvement. Tl>o, first, of couse, is; the reduction of the Bank rate, which has. naturally j strengthened all gilt-edgeds and caused a mild, recovery; in many industrial : stocks , which had previously been in a depressed condition. Apother, gopd factor is the gradual, lessening of the liquidation which has been troubling the market far months, but from the Australian viewpoint the most satisfactory incident is the I steady improvement fin Australian Government stocks after their late j unprecedented and unwarranted col. lapse. Financial .writers unanimously attri-bute-the recovery to Mr J. H. Scullin’s and Mr E. G. Theodore’s reassuring statement, especially of the intention to pursue a drastic policy of economy., t .and Mr . Gibson’s, an!.nouncement that the, ..v'Couimonwpalth ; Bank in shipping £7,000,009. i' l g°W •is also having a gopd, effect.. Commenting on the . position, the < “Financial Times” says : ‘‘lt waa the i heedless conduct of Australia's affairs i which was questioned here, and not ; the good faith of its people. Mr iSdul- ; lin and Mr Theodore appear now to j have not only a full realisation of the j seriousness of ■ the position, but. a .de-l-termination'" to r-qdress it. If their (efforts are carried to the logical „con- ; elusion there is no need, to doubt as ; to the complete restoration of AVsHp' lia’s credit..

I How great the . improvement lias j been is shown in the following' middle I prices dealing with . 'Commonwealth 15 per cent., 1945-85:—On Tuesday, the j price was £BS 10s; on Friday, £B9. I Commonwealth 4"f per opnt. were:.— ! Tuesday, £Bl 15s; Friday., £B4. New South Wales 5 per .cents., 1945-65, Tuesday, £B4; Friday, £BS- 10s. Victorian 5 per cents., 1945-75, Tuesday, £B4; Friday, £87.. .. Other ’Australian ; stocks show similar improvements.

India is yfclil Bjfrb horrowgr^ldfy rthe year. Underwriting is proceeding' of £6,000,000 6 per cents, at £99. The loan is repayable air -par in June, 1932, but may ne extended, a ve]ar, in. which case it will be repaid at' £lOl. Allowing for redemption, in. ,1932 the loan yields 129 s per cent.,' and if redeemed in 1.933 the yield' is 1325,' 3cf ? per cent. The object, of the loaft is to repay maturing bills due' on ruary 27th. The terms are cbnsidbfed very generous to subscribers, and may lie taken as an indication that future borrowers here will have to pay a high price.

DAIRY INDUSTRY. The butter trade remains disappointing. There is an. entire absence of speculative buying, retailers being content to take only sufficient for their immediate requirements. This is not surprising-in view' of the liberal stocks hero and the quantity afloat, hut as present prices of Australian and New Zealand are' 'nearly 30s a cwt. below those ruling a year ago soine importers are hopeful that the bottom has been reached. One cause of these low prices' has 'been the mild weather through all the winter months, with the wannest January on record. Now, however, we are experiencing a cold spell, and the demand ought to improve. Dissatisfaction has been expressed with the quality of some recent arrivals of Australian butter. One importer who purchased an unsalted consignment of a certain Australian brand on c.i.f. terms rejected the parcel on the ground that it was of inferior flavour. Other importers also sav their consignments from Australia this year have been far from - satisfactory, chiefly on account of- the flavour, but they also complain of excessive moisture. There are also said to have been, numerous instances of short weight.