FINANCE AND COMMERCE

Hokitika Guardian, 13 August 1930, Page 7

FINANCE AND COMMERCE

FORTNIGHTLY REVIEW. INVESTMENT STOCKS FIRMLY HELD. [United Press Association—By Electrii Telegraph.—Copyright.] LONDON, August 9. With .holidays in full swing, business on the Stock Exchange naturally has been on a small scale. During the twenty-one days’ (account just concluded little speculative activity lias been shown, but investment in stocks has preserved a good tone. British funds hardened appreciably on hopes of cessation of the drain of gold to France, and the consequent lessening of fears that money will become dearer. Victory Bonds have been sold at a record price and 5 per cent War Loan almost touched the highest quotation ever marked. Dominions’ stocks generally are steady, but Australians have mostly fallen back somewhat from the improved prices realised early in July, and so far have not responded as they might have been expected to do to the Loan Council’s acceptance of Sir Otto Niemeyer's views in regard to borrowing

IMPERIAL TRADE. Barclay’s Bank Review contains an interesting article with reference to the bankers’ resolution on the subject of Imperial trade relations. The Review argues that “the only alternative policy to that of a low safeguarding tariff. which might enable us to develop the Empire market and still letain, through lower costs of production, a fair share of the trade of other foreign countries, would be through a reduction in wages, but such policy would obviously be attended with great difficulty, even though it may reasonably be hoped an adjustment of wages, corresponding with costs of living, may become acceptable on broad lines. There is, however, no guarantee that a reduction in costs of production in this country might not be negatived by still higher tariffs imposed by foreign countries, therefore the. most practicable line to follow, to obtain more rapid development of Empire markets, as well as retaining our other foreign trade, would seem to be safeguarding of industries of this country and securing effective power for bargaining ip the interests of our manufacturers rfs proposed in the bankers’ resolution.”

WOOL OUTLOOK. Most writers on wool appear to find signs of encouragement in the outlook. Their comments are couched in a tone of mild optimism. The correspondent of the “Economist” says: “One gratifying feature is the. gradual reduction of stocks of 'tops in Germany since the beginning of the year. The decline at the end of June, as cornpaired with January, was over one million pounds, and stocks of 4,404,000 kilos were only about half the quantity held in June, 1929. It is only expected, when the June figures of stocks in Prance, Italy and Belgium are available, that they will be considerably less than a year ago, though slightly larger at the end of May, This points to increased consumption of wool and tops on the Continent during the last twelve months, which will pave the way for substantial buying when the Australian selling season commences. If the Continental buyers can operate as freely as at last London sales, and the Homo trade becomes more active, the standard of raw material valuer will hg very folly as&urtd. DAIRY PRODUCE. The butter market has again relapsed into dullness, consumers having apparently more than filled immediate requirements, During the period of active buying early in June, retailers have been using their cold-stored stocks, which thus have been considerably reduced, but still remain very heavy, and as quantities afloat to this country from the southern hemisphere are large amounting to 257,000 boxes, compared with 148,000 a year ago, there seems likely to be a large amount on hand when new season’s Australian and New Zealand butters begin to arrive, EGG MARKET. Prospects for the Australian and New Zealand egg season do not appear over-promising, and shippers may find prices will not equal last year’s, disappointing as they were. Continental arrivals just now are large, and though supplies of British show the usual seasonal decline, the demand is poor and the market irregular.