SIGNS OF REVIVAL

New Zealand Herald, Volume LXIX, Issue 21263, 17 August 1932, Page 5

SIGNS OF REVIVAL

CONDITIONS IN AUSTRALIA

STOCK EXCHANGE BUOYANCY

INCREASE IN CONFIDENCE

. [FROM OUH OWN COmtESPONDENT] SYDNEY, Angr. 11 Stirred by tho latest revival news from

overseas, tho investment market in Sydney and Melbourne during the last fow days has assumed a pronounced buoyancy. On Tuesday in both cities the official calls at tho Stock Exchange had to bo prolonged in order to cope with the heavy volume of buying orders that flooded the market.

News from London and New York was regarded as particularly encouraging, and tho progress of events at Ottawa may liavo had something to do with the rush of business. Although no official news had boon received as to what Australia was likely to gain at Ottawa, the general display of confidence was regarded as most significant.

'For somo weeks now investors have been displaying a confidence that has been lacking for many months, but this week they have been operating with a freedom reminiscent of the "old days," the days before tho depression. Local factors in tho increased demand for investment stocks have been the narrowing range of income-producing securities, and a favourable anticipation of the opening of tho new wool season. • Higher Values of Stocks

Buyers havo squghb their requirements over a large scope, and ou Tuesday the turnover was the largest recorded for any day in the last .12 months. As a whole, banks arc not free from the hesitant note that has marked operations for so Jong, but Sydney concerns have gained ground. The most satisfactory feature of the trading was the advanco made by industrial concerns that have not been paying any dividends. At least 30 stocks increased in value iri one day. According to the Premior of Victoria, Sir Stanley Argylo, there arc now unmistakable signs of the return of better times. One could not help noticing with satisfaction the general return of confidence in the investing world, particularly in regard to Government stocks. There was a distinct indication that the people now had greater confidences in the Governments of Australia. Prospeots of Good Season The proposals of tho banks and other big financial institutions to provide cheaper money, said Sir Stanley, wero encouraging, •particularly as there was every prospect, that Australia would enjoy yet another good season, with better prices for its products, particularly wool and wheat. The revival in the building trade in Melbourne was another healthy sign. The Ottawa Conference was moving along the right lines, and altogether the indications that Australia was moving out of the valley of depression wero most heartening. As a further indication of the gradual improvement of the business outlook, it is announced that there has been a steady rise in postal revenue. Telegraph earnings for the four months ended July 31 were nearly £40,000 greater than for the corresponding period last year. BERLEI, LIMITED RESULTS IN AUSTRALIA AN INCREASE IN DIVIDEND A net profit of £17,923 for tho year ended June 30 is disclosed in the accounts of Berlei, Limited, corset manufacturers, Sydney. Tho profit compares with £20,810 for tho previous year. Staff profit-sharing dividends paid during tho year required £1773; a sum of £SOOO was carried to general reserve and £SOO to tho reserve for .bad debts. The ordinary dividend is increased from 7£ per cent to 8 per cent and, with tho preference dividend of 8 per cent, tho distribution requires £13,985, leaving £2217 to be carried forward, against £5552 brought forward. The report states that an increase of nearly 60 per cent in taxation was largely responsible for the reduced net result. The heavy burden of exchange absorbed all the savings effected by improved methods and lower production costs, thus preventing the reduction of selling prices, which would havo followed under normal conditions. Berlei (N.Z.), Limited, reported a substantial increase in the volume of sales and had declared tho usual dividend. Other subsidiaries also reported increased sales.

LONDON BUTTER PRICES

"ADVICES QUITE HOPEFUL"

FORWARD POSITION STRONG

All recent cabled advices received by Auckland dairy produce merchants regarding the butler position in London, have been quite hopeful, and some surprise has been expressed at remarks attributed to .1 New Plymouth agent, in which the view is expressed that the 10cent advances in London aro only temporary, owing to the amount of Danish butter on tlie market. "It is true t hnt, very little buying of New Zealand butter is being done just now," said an Auckland merchant. "That is, of course, because we have very little to sol}. Denmark is so close to the English market that Danish butter is not intended for storage, and there may be u tendency for prices to be cut to avoid a carry-over. Tariffs and quotas aro against the export of Danish butter into Franco, Germany and Italy, so tho Danes aro forced to sell practically all their surplus butter in Britain." Another merchant said the forward position for Now Zealand butter was quite strong. Tho Danes were now in the flush of their season, whereas tho new season New Zealand butter would not bo entering (Ito English market in any considerable quantities until October. In view of New Zealand production being so limited at the moment lie did not consider tho price being received for Danish butter would have any deterrent effect on tho return received for the New Zealand product. The merchant thought it significant that a recent report recorded the bankruptcy of 1800 Danish farmers. Previously the failure of Danish farmers had been regarded as unprecedented. A report from A. IT. Tnrnbull and Company, Limited, surveying conditions during the middle of July, pointed out that in two weeks tho price of Danish butter fell from 114s 6d to Ills a cwt., whereas New Zealand weakened only 6d a cwt., which was considered to be a point for ■Congratulation. Tho markot for New Zealand butter assumed an upward turn at the beginning of July, when quotations for finest advanced by 2s to 100s. Quotations of up to 108s were reported by the middle of tho month and the market has held firm at about, that mark during the succeeding weeks. The latest quotations have been At 107s to 1093.