SHARE VALUES

New Zealand Herald, Volume 82, Issue 25217, 1 June 1945, Page 4

SHARE VALUES

CONTROL IN AUSTRALIA MOVE TO "FREE" PRICES 1 A conference of chairmen of the ; Adelaide, Brisbane, Hobart, Perth, Sydf ney and Melbourne Stock Exchanges ; will be held in Melbourne at the end oi I this week as a preliminary step to furi ther representations to the Federal Treasurer for relaxation of the present ■ ceiling price controls 011 listed company i securities. The general price lerel in Australia has increased by at least 26 per celt since the war began and adjustments have been allowed to many sections of the community to compensate for this increase. In spite of this, however, the prices of most leading Australian industrial shares are pegged at pre-war levels. Ceiling prices on shares have created artificial market conditions, stated the chairman of Australian Stock Exchanges, Mr R. A. Howe, in Melbourne. The longer those conditions were allowed to continue, the more protracted and difficult would be the processes of restoring the machinery whereby industry might raise the lofig-term capital essential to post-war revival. Once Australian influences were quickly reflected in the prices of related shares on the New Zealand markets, but since Australia instituted its control system a marked disparity in levels has arisen in the two countries. The extent of this is shown in the following comparison of the level of sales made over the past few days:— Aust. N.Z. Com Bk. Aus. (pf.) 10 '2 0 XO 10 0 Bank N.S.W. .. 28 10 0 34 15 0 Tooths .. 2 10 0 SOU Broken Hill Pty... 2 0 0 2 6 3 Colonial Sugar .. fil 5 0 50 15 u Morts Dock .. 10 8 16 0 Mt. Morgan .. 0 7 6 0 7 •"> Mt. Lyell . . .. 1 4 7 1 /, 1 6 9 One of the chief grievances of investors in Australia is that the Government has never explained how the restrictions in any way assisted the war effort.

SURPLUS WOOL LONG-TERM DISPOSAL PERIOD OF FIXED PRICES (Kecd. 5.35 p.m.J LONDON, May HO The Empire wuol conference has recommended <i lung-lerm selling policy to solve the problem ol surplus wool slocks, states the Daily Express, j.l adds that in the first place Britain's woollen nulls will have raw material tor many years VM is suggested) at stabilised prices, thus guaranteeing wages and lull-time employment, and, secondly, the sheepfanners of New /,ealaud, Australia and Soum Africa will t>e saved violent year-to-year market fluctuations. The conference recommends that the same long-term policy ol settled prices should be applied to meal, bacon, butter, cheese and eggs. The Empire wool conference, at which New Zealand was represented, was opened in London on April 10 to consider matters arising out of the accumulation of wool purchased by the United Kingdom Government from the Dominions under the wartime agreements and how these stocks might be best disposed of concurrently with future clips of Dominion wool. Estimates of the surplus wool now in storage vary from 10,000,000 bales up lo 13,000,000 bales. In New Zealand, where storage for unshipped wool has become a serious problem, it is estimated there are approximately I,'->OO.OOO bales, well over a normal season's clip, in store. By comparison the surplus of 3,000,000 bales held al (he end of the last war was small and yet

, over three years were retiuirtm iuj iva posal. WOOL AND MEAT A CONTRASTING POSITION Affording a sharp contrast in world supplies, the quantity of meat available is about y per cent below estimated requirements, but the holdings of wool, in conjunction with the clips on the sheep's backs, cannot be rapidly absorbed by the world's consumers, reports Winijicombe Carson, Ltd Australian woolbrokers , ~ Although supplies of wool arc plentiful, they arc chiefly of the faultier, shorter types. The adverse growing conditions over much of Australia this season will tend to keep supplies of attractive length types in check. One of the greatest risks for future wool prices is the South American situation. Large stocks have accumulated because of shortage of shipping. These wools are not under the control of the British Government, and a danger is that they will undersell the raw material elsewhere. A Government arrangement to avoid that possibility would be advantageous COLLECTION OF NOTES FINANCE REGULATIONS (f.A.) WELLINGTON, Thursday On May 1 Bank of England not-es of £lO and upward ceased to be legal tender in England, This was announced recently by the Reserve Bank of New Zealand and. in order to assist in the repatriation of sterling notes held in the Dominion, the Reserve Bank agreed to exchange notes of £5 as well as those of £lO and upward during April and May The Reserve Bank announced tonight that it had been decided to extend the period until June 30. It is pointed out that, pursuant to the Finance Emergency Regulations. 1940 (No. 2), all persons ordinarily resident in New Zealand who are entitled to sell or procure the sale of any foreign currency shall offer it for sale to the Reserve Bank and that failure to comply with these regulations .renders the persons concerned liable to substantial penalties. It is possible, however, that some people have not realised that Bank of England notes. Commonwealth of Australia notes, United States and Canadian dollar notes .are foreign currency, which must be offered to the Reserve Bank. A further and final opportunity is therefore being given to persons holding Bank of England, not-es or other foreign notes to offer them by June 30, MM*>. The Reserve Bank or its agents, the trading batiks, will accept Bank of England notes for collection up to that date. GISBORNE WOOL RETURNS (0.C.) GISBORNE, Thursday The final assessments of the 1044-1") wool returns for the Gisborne-East Coast district show that 57,480 bales were appraised at the three district centres for a total realisation of £1,097,133. Last year's offerings totalled .Ml/219 bales and realised £1,096.684. In 1943-44 the average price a bale was £l9 6s 7d, or 13.2.58 d per lb. In the season juet closed the averages were £l9 Is 8d a bale and ifl.J 52d per lb. |