CHEAPER MONEY

Nelson Evening Mail, Volume LXIV, 24 March 1930, Page 6

CHEAPER MONEY

MARVELLOUS EFFECT

ON LONDON STOCK EXCHANGE

SI-lABf ADVANCES ALL ROUND

(United Press Association—By Electric Telegraph—Copyright) LONDON'. 22nd March. The reduction of the bunk rate to 3-A per cent, and the opinion confidently expressed iu many quarters that it will lie still further reduced to ;i per cent. next month has had a marvellous effect on the Stock- Exchange, especially on the gilt-edged market, which during tl:e last few days lias shown activity reminiscent of the boom days of the past. Following a sustained upward movement of British funds which commenced on Monday there were sharp advances all round. Yesterday, compared with a week ago, 4 per cent, consols showed an advance of 2}; conversion 4i an advance of 3.V; land victory bonds an advance of; 3J; and Indian 33 per cents, which had been very weak owing to political troubles. improved no less than SA. Commenting on the position the "Financial News" says: "To some extent the market is professional and profit taking may cause a reaction, but it is an acknowledged fact that big finance houses and insurance houses are buying. A notable part in the general advance has been played by Australian stocks and Indian stocks. This is partly due in both cases to the fact that these stocks had previously lagged belrincLthe general body of gilt-odgeds. but it also reflected a real revival of confidence in the stability of borrowers, stimulated in the Australian case by the determined efforts which the Labour Government'is making to right the exchange situation and in Indian by the petering out of the Gandhi campaign." Another financial expert writes: "No doubt a good deal of professional speculative buying has taken place. In some respects it is regrettable, though perhaps inevitable, that the professional operator should get ahead of the genuine investor. The question which the [ investor is asking is whether the rise is likely to go further and money is : likely to remain cheap for a prolonged ( period. I can only say that for the moment indications favour a likelihood of low money rates continuing some months."

Other writers express similar views, some even mentioning the possibility of a 2i per cent, bank rate in the near future. WOOL POSITION Describing the wool position a Bradford correspondent writes: "At the opening of the London sales greasy merino wool was no more than 5 per cent, cheaper-. This means that there is more buying power and more definite requirements to fill than has been previously acknowledged. The opening sale and the steadiness which has since been maintained has exerted a very beneficial effect here. The low quotations for fine tops having been withdrawn there are now no sellers of average G4's at less than 20d, and _at the moment there is some indication that more business is to be done. The sharp decline in crossbreds leaves the market here still rather weak, particularly as values have' continued to fall in New Zealand. All influences recently operating in the crossbred market have been towards depression. Under these circumstances, and in view of the poor state of Continental trade, no market recovery in tops seems likely."

OPENING OP APPLE SEASON The Australian and New Zealand apple season opened with tlic arrival yesterday of the Tainui with 8500 cases from New Zealand. Importers are not optimistic regarding the market, for supplies of American and Canadian, though less than last year's, are exceptionally heavy. Quantities are still very large, the arrivals for March being estimated at over 1,100,000 cases. Americans are likely to arrive in large quantities for several weeks to come, so that apples from the Southern Hemisphere will have to face keen competition, especially as the American fruit is in excellent condition. Prices arc comparatively cheap, best Oregon Newtons making 15s Gd per case. BUTTER MARKET

The butter position shows no improvement, for though the quantities afloat from Australia and New Zealand are less than a-year ago there are considerable stocks in cold store. According to latest particulars issued by the Empire Marketing Board, which are estimated to cover 90 per cent, of all butter in cold storage in Britain, the .quantity stored on Bth March amounted to 001,28 G boxes. Despite a reduction of retailers' prices to eighteen pence a pound consumption shows no expansion and the demand by retailers is hand to mouth, as in the present position of the market no one shows a disposition to buy more than is necessary for immediate requirements. I