DEMAND FOR BONDS.

New Zealand Herald, Volume LXVII, Issue 20563, 14 May 1930, Page 7

DEMAND FOR BONDS.

THE AUSTRALIAN MARKET

LOOKING TO NEW YORK

HEAVY STATE DEFICITS.

[FROM OUR OWN CORRESPONDENT.] MELBOURNE, May 7. The outstanding features in Melbourne Stock Exchango circles during the first week in May have been the ever-increas-ing demand for Commonwealth securities, with supplies being especially lacking in volume, and a further drastic writing down in general investments. The extent of tho demand for Commonwealth Loans is amply demonstrated when it is stated that as compared with prices ruling last week, tho per cent. 1936's and 1941's aro now quoted at upwards of £1 per cent, higher. Tho demand for short-dated loans lias been particularly keen. Developments in this section of the market put a slightly different complexion on the probable terms of tho new internal Commonwealth loan, tho terms of which aro expected to bo announced this month. It is to bo somewhat regretted that tho Loan Council perforce will havo to enter the local market in the near future for its requirements of about £7,000,000, as not only will this tend to disturb the recovery in tho gilt-edged section, but will p'robably have a further adverse influence on trading and commerce, and will absorb onco again floating supplies of money. Special reference lias been made in the press of tho visit to New York of Mr. Fenton, Minister for Trade and Customs, accompanied by Mr. J. R. Collins, tho Financial Adviser of the Commonweal!li in London. There is little doubt that these representatives of the Commonwealth will endeavour to tost out the possibilities of the New York market for a, Commonwealth loan. From latest cabled advices it would appear that tho Commonwealth will have to pay fairly dearly for its requirements should it decide to enter tho New York market in the near future. A further reduction in the Bank of England rediscount rate has immediately been reflected in a sharp advance in almost all gilt-edged securities, although, unfortunately, external Australian loans havo not shared to any extent in this upward tendency. Tho London industrial market is, however, dull. Tho tone of money rates for Australian local bodies is, if anything, , slightly easier than a few weeks ago, not only by reason of tho firming in Commonwealth Bonds, but also duo to the fact that tho demands of such bodies aro not as insistent as in the immediate past. While from tho foregoing tho outlook is perhaps brighter than recently, tho futuro path of the Commonwealth is beset with difficulties, especially from a Government finarfcial aspect. The Treasurer of New South Wales, Mr. Stevens, recently publicly 6tated that the various States will havo a combined deficit of about £8,000.000 in two months time, and as far as New South Wales is concerned taxable incomes next year would bo £2,000,000" less than formerly. lie further went on to state that for every £IOO advanced by tho banking institutions to help industry only £96 was being deposited, and that 'state of affairs could not last for ever. WAIHI GRAND JUNCTION. PROFIT OF £5161 LAST YEAR. Cabled advico has been received from London by tho local attorney for the Waihi Grand Junction Gold Company, Limited, that the net profit for the year ended December 31, 1929, was £slOl. At tho annual meeting to be held in London on May 23, the directors will recommend a dividend of one penny a share, free of income tax, payable on May 30, absorbing £1727, and leaving £3434 to be carried forward. Following reorganisation of tho company in 1926, the report for 1927 showed a profit of £2588, which was applied to tho reduction of property account. In 1928 there was a profit of £1928, out of which a dividend of a penny a share was paid and £203 carried forward. MARKET REPORTS. FRUIT AND PRODUCE PRICES. There was again a very poor demand for apples at the Auckland City Markets yesterday. Cole pears met with a fair response. Larger quantities of lemons were marketed and sold at considerably decreased values. Passion fruit sold fairly readily at 2s 6d to 5s 6d a case. Local tomatoes commanded higher prices. The first of the season's Island oranges, which wero in good condition, realised 14s to 20s a case Californian oranges brought 46s a case. Ripe bananas sold at the slightly reduced rate of 12s to 18s a case. Fiji mandarins aro now being offered at 10s to 12s a case. A fresh shipment of Australian citrus fruit, comprising pines, oranges, mandarins and grapes, arrived yesterday and will bo sold to-day. A largo consignment of Island oranges will bo brought by tho Waipahi next week. The field produce market continued to bo very heavily stocked with . cabbage, pumpkins and celery. Adequate supplies of all classes of vegetables in season met with a fair inquiry. Supplies of water melons have now finished. No rock melons wcro offered. There was no change in tho values for the six grades of hen and duck eggs. Best grade hen eggs are selling at 2s lid a dozen and duck eggs at 2s 3d a dozen. Moderato supplies met with an average demand. Medium stocks of farmers' butter again realised is to is 2d pound. Following are yesterday's prices:— , FRUIT. Grapes, Colnian, hothouse, choice, 1? Gd to 2s 3d per lb: seconds and medium, 9d to Is; Sydney whites, Ms to 18s a case; tomatoes. local. No. 1, smooth. 0s 1o TOs Gd a ease; No. '2, 4s to Cs; rough. 4s to ss: Iluttfl t;s to 8s; apples, Jonathans, 4s 0(1 to Gs; Munroes, :is Gd to 4s Gd; Ballarats. 4s to 5s Gd: Delicious, 3s to ss; other varieties, 3s to Is; Delicious, ex-cooler, (>s to 7s: pears. Coles. 7s Gd to 9s: Clairseau, 4s to ss; Keillor's, 3s to 5s fid; lemons, local. No. 1. 10s to lis a case: No. 2. Gs to 8s; passions, 2s Gd to 5s Gd a case; tice tomatoes, 3s to Ds Gd a case: persimmons, "s to 5s a case; Cape godseborrics, 4d to 5d per lb; oranges, Island, 14s to 20s a case; Californian, 4Gs; grapefruit. Californian, 445; mushrooms, 2s to 2s Gd per lb: bananas, ripe. 12s to 18s a case; mandarins, Fiji, 10s to 12s. FIELD PRODUCE. Potatoes, Southern. Gs to Gs Gd per cv.t; onions, hard, dry, 2s Gd to 3s a bag; medium. Is 9d to 2s 3d; spring, (id to 9d a bundle; kumara, local. 2s to 2s Gd a bag; Tauransiti, 4s to 5b per ewt; cabbage, 1? to 5s a sack: on benches. Is to 2s a dozen; cauliflower, 3s to 8s a sack; on benches, 2s to 83 a dozen; swedes, Is Gd to 2s_ Gd a bag; »pumpkins. Crown. 5s Gd lo Gs Gd per ewt: red, 2s fid to 3s fid; on benches. 3d to Gd each; Citron melons, sound. 10s to 12s per ewt; green peas, 8s lo 13s a bag; beans. 4s to lis; lettuce. Is to 4s a case; cucumbers, hothouse, 4s to 7s a dozen: outdoor, 5a to 9s: vegetable marrows. Is Gd to 2s Gd; celery, Gd to 2s a bundle; rhubarb, 2s to 3s a dozen: spinach. Gd to 9d; radish, 3d to fid; carrots, parsnips, beet and turnips. fid to Is a dozen; leeks, 2d to 4d a bundle; cliokos. Is to 13 Gd a dozen. DAIRY PRODUCE. Tien eggs, first quality, special grade. Cs lid per do/., A gradt, 2s 9d: 13 grade, ' f s 3d. Duck eggs, first quality, special grade, -9 8d; A grade, 2s 7d; B grade. 2s 3d. Fanners' butter, 1b to Is !2u per lb.