BAD WEEK

Nelson Evening Mail, Volume LXIV, 23 February 1931, Page 6

BAD WEEK

LONDON STOCK EXCHANGE SPEECHES IN PARLIAMENT HAVE SERIOUS EFFECTS (United Press Association—By Blectrio Telegraph—Copyright) LONDON, 21st February. The Stock Exchange passed through a very uncomfortable week. Both investment and industrial stocks have undergone serious depreciation and all markets are in a nervous condition following Mr Snowden’s and Mr Lloyd George’s speeches, the chancellor’s announcement being regarded as an indication of bis intentions to impose additional taxation on unearned incomes. This has brought about heavy selling of gilt-edgeds, with a consequent fall in values. As the ‘Statist” remarks: “Markets have fallen a victim to Budget fears while the Labour Government’s belated admission that a national crisis exists has been calculated merely to make matters worse in the absence of any definite proposal to deal with the situation. With such conditions prevailing it is natural that Australian stocks were further marked down. They mostly became lower daily until yesterday, when an announcement that maturing treasury bills would.be repaid had an immediate salutary effect. Several Commonwealth and State stocks hardened as a result, it is believed, of speculative buying by professional operators. Such purchases are not surprising when it is recalled that at recent prices some of these stocks 'grve enormous returns.” The Australian exchange position at last begins to show slight srgns of improvement. Some people are talking about the possibility of arr early reduction of rates. It may be that tire wish is father to the thought, but it is a fact that the outside market and banks here are now charging the same rate and it is reported that business has been transacted in Australia at rates lower than those quoted by the Associated Banks. The repayment of treasury bills.is also regarded as indicating an easier exchange position. TIN MARKET A more optimistic feeling prevails in the tin market. Prices advanced nearly £7 pounds a ton during the week owing to the expectation of an announcement, made yesterdav of the Government’s approval of tile tin restrictions proposal. This caused much activity in the market. Yesterday’s turnover was nearly a 1000 tons. According to the “Morning Post” the reduction contemplated amounts to 22.3 per cent, of the output in 1929. This it is estimated will reduce production in the current year by between 145,000 and 150,000 tons or rather less than the anticipated consumption, so that the excess stocks should gradually diminish.

BUTTER MARKET Butter consumption has recently been on a large scale and though the demand eased a little towards the end of the week it has been sufficient to clear heavy arrivals. Nearly all Continental countries are now on the lowest production, consequently the demand from them has been maintained and considerable quantities, especially of unsalted, have been shipped from this country. The weather, however, is comparatively warm, and it will not be long before Continental production increases materially, so importers do not expect the present demand to continue much longer.

Consumption in Britain appears to be •increasing. The Empire Marketing Board’s efforts to popularise Empire butters in the North of England are meeting with considerable success. A number of large London stores are pushing it, Unfortunately some Australian butter which these stores are selling

are not a good advertisement for Australian dairy farmers. With laudable patriotism Sir George Fuller, AgentGeneral for New South Wales, ordered Australian butter from a large WestEnd store and received an article which had a very bad flavour. He promptly went to the store to .investigate and found that there was not a box of Kangaroo butter in the place. All they had was second quality. As a result of Sir George Fuller’s protests a repetition of this sort of thing is unlikely. Retailers are now charging 15d a pound for finest Australian and 16d for New Zealand, and about 2d less for second grades