COMMERCIAL SUMMARY

Northern Advocate, 17 December 1928, Page 6

COMMERCIAL SUMMARY

FORTNIGHTLY REVIEW

FINANCE QUIET.

CONCERN FOE THE KING,

(Australian Press Association.) (Received 10.10 a.m.) LONDON, December 15,

Stagnation has reigne/i on the Stock Exchange since the beginning of the month. Anxiety about the King a health has been one of the chief causes, while the approach of the Christmas holidays and the slump on Wall -Street also' contributed to make things quiet. While business has been restricted, gilt-edged stocks have remained steady, which is a matter of congratulation, as there has been such a considerable doflex of gold from the Bank of England that there is talk of a possible increase in the bank rate—not this year, but early in 1920, when it may be difficult to keep the rate at the present level.

AUSTRALIAN LOANS. In a long article, headed: “The New Position of Australian Loans,” the .“Economist” discusses the effects of the Federal Government taking over the State’s ,debts. After expressing approval of the financial reforms carried out under Mr S'. M. Bruce, especially the furnishing of information in prospectuses and provision for sinking fundls, the writer proceeds to say: “The all-important question remains is Australia’s over borrowing.” The, writer points out tlhat 67 per cent, of the net Australian debt was raised for purposes directly, or indirctly f .productive and arrives at the conclusion that .the test of soundness of Australian borrowing is whether the money is being spent productively and economically. The writer concludes: “The London market will take a more cheerful view of Australian securities when it is assured that reckless borrowing has given place to wise, earefully-supervisefl, borrowing. There are signs of restricted spending on the part of both Government and individuals. While the exceptionally good rainfall in October has changed the seasonal outlook for prim'ary production, now is the time, we suggest, for the commonwealth and its states to budget for surpluses, not deficits, and apply those surpluses to accelerate the repayment of deb!??.” BUTTER MARKET STRONG.

The butter market has shown groat strength this week, -prices on all ’ descriptions have advanced, and the rise is a genuine one, brought about by a real shortage. For some time past, retailers have been working on very small istoeks -anfl they appear, suddenly, to have- awakened to the fact that prospective supplies are smaller than they thought. There is also a groat shortage on the Continent and considerable quantities of Colonial are being bought on this market by Germany, Belgium, Holland, France, Italy, and .Switzerland. This demand appears likely to continue and the prospects for the next month or so appear decided ly favourable, the year finishing with the whole trade feeling fairly comfortable.

WOOL VALUES STABLE. “Regarding the standard of wool values, 77 says the. “Statist’s 77 Bradford correspondent, “there is far more faith today in current values than in last March, when prices Avere distinctly higher and when a good deal of forcing tactics had been employed. Today this feature is entirely absent, but all sections of the industry are satisfied that current Values are high enough to bo safe. Higher values will do more harm than good. It looks as if we are going to see steady values, with consumption maintained and tending to improve. 7 7

NEW ZEALAND SCORES. In the annual review of Australian and New Zealand fruit season, Messrs F. W. Moore and Company call attention to the fact that Ncav Zealand has, since June, enjoyed the advantage of the favoured nation treaty Avith the German Government. Several other nations have a 'similar arrangement, whereby they have to pay only seven roichraarks import duty—roughly 7/.1 per 10 kilograms;—instead of 15, Avhioh is charged on Australian fruit. This, of course, only applies to fruit bought for consumption in Germany, but Germany, with a population of 60,000,000, has a large number of potential buyers,

who hesitate to compete for apples ou

which the duty is roughly 2/9 per case, and concentrate their attention on apples which, under a favoured national treaty, pay about 8d per case lower duty. Commenting on this position, Messrs Moore and ('empany write: “The Australian fruitgrower needs to stir up the Commonwealth Government to follow New Zealand's example. The Ministry of Market in Australia should attend to this without delay.”