TRADE AND FINANCE.

New Zealand Herald, Volume LXVIII, Issue 20841, 7 April 1931, Page 5

TRADE AND FINANCE.

LONDON STOCK EXCHANGE. MORE CHEERFUL TONE. COMPANIES' BAD YEAR. LONDON. April 5. The members of the London Stock Exchange broke up for the Lustci holidays in a much more cheerful frame of mind than seemed likely a week or so ago, when the gilt-edged stock market was upset b,y the repudiation threats of the Premier of New South Wales, Mr. Lang. Last week's satisfactory news from Australia about Wednesday's payment of the interest due on New South Wales stocks, however, had an immediate salutary effect. Prices improved all round, though business was not extensive.

Further incentives to "bullishness", wore found in tho fact that the British Budget deficit will not be so large as was at one time feared, also the improvement in tho gold position and tho largo dividend disbursements on April 1. Yet another good factor was the revival of hopes that the Chancellor of tho Exchequer, Mr. Philip Snowden, will find it possible to carry through successfully his war loan conversion scheme before tho end of the year. Industrial shares have had to bear the brunt of several unpleasant shocks lately, notably the poor trading reports of important companies like the Cunnrd Line and United Molasses, Limited; 'J he latter cdnipany has had a disastrous year, showing a debit balance of £013,000, compared with a profit of £972,000 for the previous year. Tobacco shares also reacted on expectations that tho Budget would impose an additional duty. Rubber shares were weak in price. Tho commodity itself fell to the low record of 3 5-16 d a lb.

Notwithstanding all these unfavourable influences there has been no great pressure to sell, and the tone of the market has been quietly hopeful. During the company promoting boom of 1928-29, when shares in many more or less " bubble'' companies were foisted upon an unsuspecting public, it was a common thing to announce that issues had been over-subscribed, whereas really the public'response had been small. Such untrue announcements will be impossible in future, as the Advertisers' Association has arranged with editors to refuse over-sub-scription announcements unless they are accompanied by ti statutory declaration signed by a director and the secretary of the issuing company stating that applications have exceedod the number of shares available for allotment and were accompanied by appropriate remittances.

LONDON BUTTER MARKET. PRICES FAVOUR BUYERS. REASONS FOR THE DECLINE. LONDON. April 5. With heavy quantities of butter coming forward from Australia and New Zealand, while Continental production is increasing, the prices of all descriptions have moved in buyers' favour, and it seems likely they will go still lower. Danish is particularly weak, its price having fallen 34s a cwt. since February 14. Commenting on the butter position, the Grocer says: "Various reasons are put forward for the decline, and it is difficult to assign the real cause. It has been suggested that tliero has been some pressure to sell Dominion butter by holders who bought cheaply on c.i.f. terms. Also the demand for Easter requirements both in England and on the Continent was below expectations. This may be attributable to bad trade generally, or to the fact that supplies exceed requirements." One satisfactory aspect of the butter market is that consumption for some months has been on a very huge scale, thanks largely to cheap retail prices. The storks in cold store on March 21 were estimated at 290,727 boxes, compared with 622,018 boxes a year ago.

THE WOOL POSITION. REVIEW FROM BRADFORD. LONDON, April 5. In regard to the wool position, the Bradford correspondent of the Yorkshire Post writes:—"There have been recently more pronounced indications of a determination not to follow the upward course of wool values until it is easier to secure compensating prices for yarns and piece goods. There is a limit to the power of the raw material to dictate prices, and it is felt that for tlie time being it has largely exhausted itself in this respect. "The excitement on the raw material market of the last few weeks has not been carried into Ihe piece goods department. It is surprising, indeed, to what a restricted extent there has been any response by the purchasers of fully manufactured materials to the rapid advance in wool, particularly the finer qualities. The total volume of business in piece goqds has not developed as one might imagine from the recent scramble for wool, and the competition for a share of what lias been given out has been so keen that makers up and piece merchants have not found it necessary to pay more than a very small percentage of the increased cost of the raw material."

SYDNEY HORSE SALES,

DRAUGHT STOCK IX DEMAND. SYDNEY, April C. That the day of the horse on the farm is not yet done was strikingly emphasised nt the auction sales at the Royal Easter Show. An outstanding feature was the demand for draught slock. Practically all colts were sold at excellent prices, ranging from 62 to 170 guineas. Competition was correspondingly good for purebred Clydesdale stallions, mares and fillies, while last week's sales of beef and dairy cattle were (lie best for two years.

BLACKBALL COALMINE. CLOSING NOT ANTICIPATED. The Blackball Coal Company, contrary to report, is not regarded as having decided to close the mine and abandon the workings, states the Grey River Argus. Messages were sent, to the .Minister of Mines and the Minister of Labour last week, and the replies went to show that, the abandonment of the mine is not the end in view. 'J.lie mine has been idle for some weeks as tho result of a dispute. CALL AND DIVIDEND LIST. . Dividends— Due. Kernpthorne-Proßser finn! div. of 3J p.c. and bonuß of '2 p.c. April 9 Milne and Choyce—interim, 3J p.c. on nil issues .. .. April 10 Beath—Half-yearly, 2J p.c. pref., 5 p.c. ord. Call— Taranaki Oil—Gd a sbar« r.» April