INTEREST TREND

New Zealand Herald, Volume LXXV, Issue 23033, 10 May 1938, Page 7

INTEREST TREND

FUNDS IN AUSTRALIA LOAN .ANTICIPATIONS HEAVY FEDERAL DEMANDS The position and outlook in the money market in Australia are regarded as especially interesting in view of tho impression that in the near future the Federal Government will make an appeal to the Australian loan markets for a fairly considerable amount, states the Australasian Banking and Insurance Record. "Present conditions seem, to bear a favourable appearance and to assure at least a probability of success for a fairly early venture on the market by the Federal Treasury," states the Rccord. "It is expected that the borrowing authority will endeavour to meet the market at the same time aiming at interest and other bases for a loan, such as would be calculated to make strongest appeal to potential lenders. Investors Watchful "In the meantime it will not be surprising if there should develop among financial men in Australia an attitude of hesitancy about the making of longterm commitments, accompanying an inclination to hold back investments, temporarily, with a view to maintaining a position of readiness and ability to invest in the forthcoming issues."

Returns of the ten banks of Australia (excluding the Commonwealth Bank) for the quarter ended March 31 last show average deposits at £321,272.000 and advances £278.223,000, the excess of deposits being £43,094,000. Over the last 12 months, average deposits have risen by £14,081,000 from £307,191,000 and average advances by £16,762,000 from £261,461,000. Compared with the October-December quarter, when new high levels were recorded, deposits show an increase of £7,184.000, and advances an increase of £3,903,000. London Funds The tendency of deposits to swell, in spite of a fall of about 25 per cent in export values compared with last year, would indicate that no factors have yet developed in Australia which might make for a tightening of the money market, although, or course, if the trade position necessitates a substantial drawing on London funds, some effect is bound to be felt ultimately in the Australian banking system.

In' the next three quarters a tendency for credit to become somewhat tighter may be expected, but the exceptionally good season experienced last year, which resulted in at least £15,000,000 sterling being added to London funds, should ensure that no embarrassing reactions will be felt. Compared with a year ago holdings of cash by the Australian banks have increased by £2,178,000 to £39,743,000, while cash and Treasury bills amount to £59,830,000 compared with £63,604,000.

CHILLED BEEF AUSTRALIAN SHIPMENTS INFERIOR QUALITY ALLEGED Allegations that the quality of Australian chilled beef shipments to England in November had at no time been outstanding, and in some cases was definitely inferior, were made by the acting-Minister for Commerce, Mr. A. G. Cameron, last week, according.to a message from Canberra. Mr Cameron said that a report on these lines had been made by the Commonwealth veterinary officer in London, and wide publicity had been given to it. It had been suggested that the report referred to Australian chilled heef generally. This was not so. A report was made each month, and seasonal changes in the quality of the beef were noted. The falling-off in November, Mr. Cameron stated, had been due to the difficulty of procuring a large supply of high-grade export cattle in the summer months, when the Queensland season was at its ebb. The quality of Australian chilled beef during the whole year was generally satisfactory.

STOCK SALES TAUPIRI OFFERING [from our own correspondent] TAUPIRI. Monday The New Zealand Loan and Mercantile A rod c.v Company, Limited, reports that there was an average yarding of pigs at the Taupiri sale. Bacon was in keen demand and all prices were slightly in advance of previous sales. Prime heavy baconcrs, iM fis to iM fSs; heavy, i t to iM 4s; medium, £3 14s to £3 lt»s; light, £3 5s to £3 l-'S; heavy porkers, £2 Lis to £3 2s; medium, £2 (is to £2 12s; light, 3Ks to £2 4s; unfinished, M'Js to Wis; choppers, £2 to £3; large stores, 'Jos to 'Jits; medium, 2'2s to 245; light, 18s to 2 Is; slips, 12s to His (id; best wenners, Os to lis; others, to <s Oil. Cattle:' The advertised dairy cows came forward in good condition and met with keen demand. Springing Jersey heifers were keenly sought after, while wenner calves also sold well. Best dairy cows, £7 "is to £N 10s; aged cows. £0 to £7 fis; dairy springing heifers, £!» 10s to £lO 15s; weaner calves. £3 10s; fat cows, to £7 2s lid. LARGE OPOTIKI YARDING [it Y TKLKGUAI'U —OWN COXIRKSPONDKNT] OPOTIKI, Monday The New Zealand Loan and Mercantile Agency Company, Limited, reports that at its monthly sale there was ~ a very large entry of cattle, chiefly good-conditioned cows, which met with keen competition throughout Fat killable cows showed an increase on late r'ates, and a total clearance ensued. Prime fat cows made to tWs to i:7 lis; fat cows, £5 to £0 ss; killahle cows, £4 4s to £4 18s; good forward cows, £3 to £1; lighter sorts, £'2 to £•_' His; boners, 5s tQ 17s; 3-year-old steers, mixed colours. £li (Is to £0 IDs (id; yearling Jersey steers. £2 His to £3 ss; cows with calves, Jersey and poor condition, £3 (is to £4 ss; heavy bulls, £5 to £0 10s; others, £3 5s to £4 12s (id; dairy heifers, Jersey, £5.

NORTH AUCKLAND VALUES [from our own correspondent] WHANGAKKI, Monday There was a large yarding and brisk competition at the Maungaturoto sule of tlw North Auckland Farmers' Co-operative, Limited. Everything changed hands at very satisfactory prices. The advertised line of Jersey heifers from Mr. S. Petrie were very nice cattle and made up to £7 J ."is. Best dairy heifers brought £7 to £7 15s; good dairy heifers, £0 5s to £0 17s Od; medium quality and Jersey-cross heifers, £5 15s to £0 ss; smaller and inferior hoifers, £5 5s to £5 12s (id; best dairy cows, £8 5s to £8 l()s; medium dairy cows, £0 10s to £7 T2s (Id; backward and inferior cows, £4 to £5 2s (Id; fat cows, £7 to £7 12s (id; medium fat cows, £<> to £0 15s; light fat cows, £5 5s to €5 18s; three-year-old Shorthorn steers, medium quality, to £(> 18s; two-year-old Shorthorn Hereford steers, £5 15s to £(1 10s; yearling Shorthorn steers, £3 10s to CI Is; boner cows, heavy, £3 15s to £4 '2s; medium, £3 to £3 14s; light, £2 10s to £3 ss; coTvs and calves, £4 12s 6d to £6 Is; boner bulls, medium weight, £4 16s to £5 12s.