DEPRESSED MOOD

Nelson Evening Mail, Volume LXI, 11 October 1926, Page 9

DEPRESSED MOOD

LONDON STOCK EXCHANGE STOtJSGiim' WON FI All V CON omows COAL STRIKE AFFECTING SITUATION

(By Electro Teleij-aph —Copyright ! (Austxaliau dk N.Z. Cable Association.)

LONDON. Oct. 9.

Tile Stork Exchange is in a somewhat depressed mood owing to the stringent monetary conditions, with the tjossibility of money becoming still dearer owing to the failure to arrive nt< a settlement of the coal dispute. Consequentlv there has been a generally easier tendency, especially in speculation stocks, while some railways have been depressed by rumours of the curtailment of train services owing to the coal shortage. Rut despite this ttniavoiirablo condition there were several large new issues, notably six millions for the city of Tokio at o.i per cent, at £B3/10/-, which was over-subscribed as soon as the lists were opened. ■Some people are contrasting this success of a Inreign issue with the poor reception accorded the New South Wales loan, but inasmuch as the latter only yielded the investor 103/6 per cent., whereas Tokio gave 131/3, ami was guaranteed by the Japanese Government, the Japanese success was not surprising. Although the Australian iiuanco pamphlet received considerable publicity in the daily press it is significant, that financial, newspapers, both dailies and weeklies, ignore it completely and the. Stock Exchange treats it with that indifference it usually displays towards effusions of Ibis sort. Discussing the subject with a. well known stock broker who operates largely in the colonial market, he recalled to the writer that Australia had been subject to similar acidulous criticisms as long as lie could remember. lie instanced the dismal jeremiads of the “Investors’ Review” 35 years ago, which at the time predicted the insolvency of various Australian Stales because of their excessive borrowing and reckless expenditure of loan money. None of these dire forebodings were realised and throughout this lengthy period no holder of Australian. Government stock had failed io receive, full interest with clockwork punctuality every half year, and capital in full at the due redemption lime if required. Regarding the demand that, prospectuses should contain details of the States financial position he pointed out that, in his long experience lie had never been asked by an investor for such information and the demand for it by certain financial writers had only been made in the last year or so. If any stock broker required this information be had only to turn to f-he Stock Exchange official intelligence which contained the ccsnpletest and latest details regarding the income and expenditure of the Commonwealth and of every State.

AUSTRALIAN DRIED FRUITS Business in dried fruits was disappointing, the Australian currants selling in small quantities at 35/- to 45/-. Sultanas were only selling slowly, though prices were hardening owing to estimates of the Smyrna crop being reduced from 44,000 tons to 35.000. Australians are quoted at 56/- and 75/-, with a few best making 80/-. Unfortunately the grub trouble still exists. One of the largest (inns of multiple shop cake makers refuses to allow Australian sultanas in its bakeries. A representative of the firm suggests that the fruit should he fumigated in Australia before shipment, thus killing both grubs and eggs, if they could be assured the sultanas were immune from grub uiey would gladly buy Australian in preference to foreign. WHEAT PROSPECTS Unless something unexpected happens it is unlikely there will be any extensive movement in world prices for wheat during the current season. It appears likely that supplies will show a comfortable surplus over the demand if 1 lie growing crops in Argentina and Australia realize expectations. A well known wheat statistician estimates the world’s total import requirements from August 1, 1926. to July 31, 1927, as equivalent to 422 million centals, while the available surplus in wheat exporting countries is estimated at 499 million centals.