MONEY MARKET

Nelson Evening Mail, Volume LXIV, 16 June 1930, Page 3

MONEY MARKET

LONDON STOCK EXCHANGE STRINGENT CONDITIONS , ALL SUCTIONS DEPRESSED (United Press Association—By Electric Telegraph—Copyright) LONDON, 14th June. The high hopes entertained n fortnight ago of the early reduction of the bank rate to 2.J, per cent, have been dashed to the ground by the adverse movements of foreign exchanges and the heavy demands for gold from foreign countries, especially Franco. It now appears likely thud stringent conditions will prevail in the money market all this month and this expectation Inis caused renewed dullness on the Stock Exchange-, especially in ilio gilt-edged market. The depression spread to other sections. The slump in Wall Street last week-end and the renewed weakness there have caused serious depression in industrials, which has been accentuated by the poor results shown in the reports oi* many trading companies. Among those declaring lower dividends are several connected with Australian trade. For instance, Lovell and CJiristams, who are large importers of Australian and New Zealand "butter, state: "Owing io the decrease in. profits resulting from the fall in the value of commodities dealt in," they are not paying a final dividend on ordinary shares, the only distribution being the interim 2 per cent, paid in January. This company has been, paying a'lO per cent, dividend for some years past.

SUCCESS OF REPARATIONS LOAN The only satisfactory event; ot the week has been the success of the German Government reparations loan ot roughly sixty millions sterling both here and on the Continent. Our share of this amounted to twenty millions in 54 per cent, bonds at 90. Lists opened yesterday morning and closed three hours later, the amount having been heavily oversubscribed. The French, Swedish, and Italian portions of the loan were also oversubscribed.

APPLE PRICES Apple prices have been keeping up remarkably well considering the heavy supplies, and the demand remains satisfactory. Within a few days, however, large supplies of strawberries are likely to arrive on the markets and their competition will naturally -affect the sales of apples. In view of the criticism passed on some of the Victorian apples it is only right to point out that many Victorian apples are entirely satisfactory. One of the leading firms of brokers .it Spitalfieds market in its weekly report says; "Some Victorian fruit packed under the community brand has been of fine quality and met with a good demand. This fruit was packed in Canadian standard cases attractively labelled, and was most attractive, and buyers continually express appreciation of the change in style of packing.

BUTTER MARKET MORE ACTIVE A welcome change has conic over the butter market since the Whitsuntide holidays, and during the last few days buyers have been more active than for a long time past. Mr Charles Wilson, a member of (he Australian Dairy Produce Board, returned to London after two months' tour of the Continent 'find the industrial centres of Great Britain investigating the position of the butter industry. Interviewed by th*' Australian Press Assosciation he said that he gathered the impression that contiricnlal countries had increased their herds largely, especially Germany. During a visit to the north of England lie found all multiple shops selling Danish. New Zealand, and a limited quantity of Australian at 15d per pound without any strong demand. Reviewing the position in London to-day Mr Wilson estimated that the visible slocks in Great Britain exceeded a million bcrxes but thought that the market had now touched bottom. Blenders and multiple shops were now operating freely, apparently thinking it desirable to provide for their autumn and winter requiremejnts while the price was moderate. Their operations had raised prices of choicest New Zealand butter to 134 s and Australian to 131 s. These operations of course would only mean the transfer of stocks in cold store from wholesale to multiple shops and blenders, and unless this butter was consumed before the end of the season its presence here will influence values of the new season's make.