STOCK EXCHANGE YEAR

Manawatu Standard, Volume L, Issue 22, 21 December 1929, Page 12

STOCK EXCHANGE YEAR

RECENT FALL IN VALUES. RETURNING CONFIDENCE SEEN. DUNEDIN, Dec. 21. Speaking at the annual meeting of the Dunedin Stock Exchange, the chairman, Mr E. R. Smith, said that the aggregate business transacted | during the year had been satisfactory., although it must be admitted that in the past two or three months there had been some falling off and market values for practically all shares showed a much lower range than they did at the same time last year. The dramatic collapse in New York, the Hatry disaster in London, and the election of a Labour Government in Australia all reacted promptly in their turn on the Australian and New Zealand markets, and large parcels of shares were offered from London at receding prices. A main feature of the market was the large amount of„money that each year had been leaving the Dominion for investment, principally in Australia. This was duo to the higher rate of interest obtainable there, but was, none the less, regrettable, as the money should be used for developing New Zealand’s own industries. With regard to the gold-mining industry, developments were in progress in Otago, which included sluicing, dredging and quartz reef companies. All these should be in full working order within the next few months, and would, it was hoped, reach the divi-dend-paying stage at an early date. Wool prices showed a considerable fall on those of last season, but this market might at present be regarded as steady at the low figure ruling. The Dominion wool revenue this year would, however, show a heavy decrease. Prices wero still at a payable point, but the margin was relatively small. Producers would have to strive to effect economies and increase production by the use of fertilisers. Some compensation for the fall in wool values might be derived from an increase in the lambing percentage. I It was, perhaps, a little outside the province of a stock exchange to urge the purchase of British goods, but, said Mr Smith, lie ventured to do so, as there could bo no doubt that they were considering their own interests bv buying, first, New Zealand goods where possible, and otherwise British goods. The fact that large amounts of money left the Dominion to purchase motor-cars, mostly or American manufacture, could only be described as lamentable. For the nine months ended September 30, tho total was £3 500,000. The very large sums also divertvd to America in connection with picture shows and films was deserving of the serious consideration of the Government. The position of New Zealand was quite sound, added Mr Smith, and although business for the past quarter had been curtailed, for the reasons mentioned, there were distinct signs in recent weeks of returning confidence.