MARKET OPENS WEAK.

New Zealand Herald, Volume LXVII, Issue 20556, 6 May 1930, Page 7

MARKET OPENS WEAK.

SHADOW OF NEW LOAN.

LOCAL ISSUE AT 6 PER CENT.

GOLD TO PAY JULY INTEREST.

[from our. own .correspondent. ] MELBOURNE. April 30.

The sharemarket opened dull and weak alter the Easter vacation, in spite of the improvement in wool prices and some good falls of rain through the three main wheat-growing States. Further widespread rains, however, are needed and a large proportion of the country is still very dry. The Government bond quotation opened very firm and the average return at Monday morning's prices was only £6 Os 8d per cent., compared wjth £5 Is per cent, just before tho holidays A number of issues, however, have since eased. Some of the firmness was occasioned by talk of the possibility of the new Federal loan being offered with an interest rato of less than 6 per cent.

The Loan Council will need to raise now money during May and it is now estimated that the total required will bo about £7,090.000, and this will havo to bo obtained from local markets. The interest rate offered could not be much less than 6 per cent., and, even if it. is, issue at a discount, making the effective return about 6 per cent, will be necessary to bring the loan into line with the market for existing Commonwealth issues. Although tho bond market is at present comparatively firm and some financial writers are predicting a lower interest rate on the new loan, there is not a great deal of money available and a full subscription of the new loan would probably absorb practically all available funds. A full subscription of £750,000 was obtained for the Melbourne and Metropolitan Board of Works 6i per cent, loan at par just before Easter. The bulk of this subscription was obtained in small amounts and the last block of £167,000 was taken up by Messrs. J. B. Were and Son, sharebrokers, Melbourne.

Mr. J. R. Collins, the financial adviser to tlio Commonwealth in London, has left London for New York, this giving rise to newspajjor talk that the Commonwealth Government is likely to try out the New York loan market, possibly as a forerunner to borrowing abroad. The Federal Treasurer, Mr. Theodore, recently slated that there was no prospect of Australia looking to London for loan money for public works or developments for a considerable time, but the Government would be compelled to go on the London market as soon as an available opening occurred, but the entire proceeds of such loans would be required to reduce the existing overdrafts in London and for the purpose of redeeming Treasury bills. Part of the policy of the present Government would be not to approach tlio money market in London, New York or any other centre overseas for new money for a long time. Any money that must be borrowed would be for the purposes of extinguishing overdrafts, which were an enormous burden to the Commonwealth and States alike.

The Hobart City Council has a 5 per cent, loan of £IOO,OOO tailing duo in London to-morrow and a conversion loan of £35.000 at 6 per cent, has been arranged to deal with this maturity. There will be interest payments on Australian loans totalling nearly £6,000,000 falling due on July 1, and it is understood that it was largely for this purpose that the last shipment of £8,000,000 of gold was made about the beginning of the month.

QUARTERLY DIVIDEND. BANK OF NEW SOUTH WALES. The directors of the Bank of New South Wales announce the payment of the usual quarterly dividend of 2£ per cent. It is payable at head office oil May 28. PRODUCE IN LONDON. TALLOW, HEMP AND FRUIT. [BY TELEGRAPH. —OWN CORRESPONDENT.] WELLINGTON, Monday. The Department of Agriculture has received the following cablegram, dated May 3, from the High Commissioner for NewZealand in Loudon:— Tallow.—Po&r demand at auction this week and an easier tendency. A total of 1369 casks were offered and 200 sold. Present spot quotations are:—Mutton: Fine, 37s to 37s 6d per cwt.; fair to good, 34s to 35s 6d; dark to dull, 31s 6d to 325. Beef: Sweet and/or mixed, 36s to 425; fair to good, 33s to 355; dark to dull, 31s to 325. Mixed: Fair to good, 32s 6(1 to 34s 6d; dark to dull, 31s to 325. Gut, etc.: 28s to 31s 6d. Hemp.—Manila: Market easier under selling pressure and want of support. "J" grade, April-June shipment, sold at £27 10s. May-July shipment, closing values, £27. ' Sisal: Market dull and easier. Small speculative sale reported. March-May shipment, fair average quality, No. 1, £32. April-June shipment quoted at sellers, £32 ss; No. 2 at £3l, with buyers holding back. .Good marks, nominally, 10s more. Mexican: Sisal, good white, still nominally £37 10s, but no business being done. Stocks accumulating and big reductions expected. New Zealand: Market dull. Nominally no business reported. Orders telegraphed for fair, at £27, c.i.f. Continent, refused by shippers, but business has been done in the London market. Apples.—Market steady. Of the Tamaroa shipment Willie Sharp and London Pippin show bad brown spot. The former are selling at 10s to lis 6d. and the latter at 9s 6d to lis. The Cumberland consignment practically cleared. Cox's Orange made 14s to 18s; Dunn's Favourite, 10s to 12s; Jonathan, 12s to 14s; Parlin Beauty, lis to 13s: Delicious, 13s to 14s. Tho Port Brisbane lias just arrived. The apples are cold, but so far are in good condition. The opening prices are:— Cox's Orange, 15s to 18s; Jonathan, 12s to 14s; Dunn's Favourite, lis to 13s; Delicious, 13s to 14s. Wool.—The Bradford market is firmer, with both Merino and crossbred moving well. Conditions favour an increased consumption as soon as the strike has been settled. Present quotations for tops are: —&4'tf. war]), 2s sd; 64's, average, 2s 4d; 56's, Is BAd to Is 9d; 50's, prepared, Is Oats.—Market easier and consumption slow. English: In fair supply. Best white offered at 19s. Plate: Shippers pressing. Afloat offered at 12s 9d and May shipment at 13s. Chilean : Juno shipment sold at 13s 6d. Nominal value of New Zealand "A" grade Gartons, May-June shipment, 225.

Peas.—English: Maple, quiet. Best making 41s, New crop making good progress. The market for New Zealand partridge has improved'. Spot stocks arc smaller and firmly held. April-May shipment, No. 1, sold at 56s to Liverpool, and 56s 6d now asked. London sellers asking 55s 6d for New Zealander, and 63s for Tasmania Blues. English and Dutch handpicked still plentiful and pressed for sale at £ll to £l3. No inquiries for Colonial Nominal value, £ll, c.i.f., London.' Beans.—Market very dull, best English winter making 38s, and small round spring 425.' Chinese horse, new crop, July-Sep" tember shipment, offered at £s. Nearest value is £7 15s, but buyers are hesitating. Danish Cocksfoot.—Market quiet. Stocks large, and present value 80s, c.i.f. Linseed.—Continued demand. Sellers of May-June shipment, Calcutta, £lB 16s; Bombay, £l9 10s; Plate, £l7 7s 6d.