MONEY AND MARKETS

Otago Daily Times, Issue 21197, 1 December 1930, Page 9

MONEY AND MARKETS

STOCK EXCHANGE DULL BUTTER MARKET DEPRESSED. FINER WOOLS IN DEMAND. fUnited Press Association.) (By Elcqtrlc Telegraph—Copyright.) , LONDON, November 29. (Received Nov. 30, at 5.5 p.m.) Dullness reigns over the Stock Exchange, and business in most sections is on a small scale, but prices generally are maintained. The outflow of gold to France has been temporarily arrested. There is an improvement in British funds, but these remain in good demand. Further evidence that there is plenty of money available for investment may be found in the heavy oversubscription of the issue by the Central Electricity Board of £6,000,000 of 4* per cent, stock at 95*. Although this is not trustee stock and yields less than s}, it was subscribed more than tenfold in a few minutes, and applicants only received about 6 or 7 per cent, of the amount applied for. The action of the directors of the L.M.S. railway in reducing the fees by 25 per cent, is likely to be followed, though perhaps not to the same extent, by three other great railway groups, which will submit proposals regarding directors’ fees at meetings early in 1931. Although the actual saving in the ease of the L.M.S. only amounts to £8750 a yearj and if the other groups also reduce by 25 per cent., the total reduction will only be about £25.000, the s t ep nieets with general public approval for it is taken as an indication that the railway economies will be from top to bottom, and that lowly paid workers will not be the only sufferers, j This Christmas is not likely to be a merry one for a large number of workers in Belfast, for Workman, Clark, Ltd., announce the closing down of their great shipyard there for two months from December 20. They are hopeful that the point of depression has now been passed, and that, with the turn of the year, freight, and markets and shipping generally will show much improvement, and that not only will the vessels in hand be required immediately, -but fresh orders will be forthcoming. Regarding the wool position, the Yorkshire Observer’s correspondent says that a hardening tendency was noticed at the London sales, and merinos are altogether in a steadier condition than crossbreds, and the cheapness of finer wools has so increased the consumptive demand and the actual manufacturing output that renewed vitality has been created in this section of the industry. Confidence has returned and values have been established on a firmer foundation, but there is a weakness in the crossbred section, which was drastically demonstrated when the New Zealand sales opened in Auckland. Opinion at Bradford, however, is consolidated around the idea that the improvement will eventually be general. It is argued, appatently with some reasonable justification, that provided the consumption of mennoe continues the finer grades of wool will appreciate, and as a necessary correchve to the excessive rise in consumption will spread to those lower down on the scale.

The butter market has gone from bad to worse. Prices declined about Cs this week, due to heavy arrivals, both actual and prospective, which has made holders nervous and inclined to press sales of both cold stored stocks and fresh landed goods,. Consumption is well maintained, thanks to the low retail prices, but does not show expansion. Cheese also has an unsatisfactory market and although the price has been lowered about 5s the demand is slow. Canada is offering the remainder of its make for shipment at low prices, so there seems to be no prospect of any imtra°Ha ment *” New Zea,and and A™ « 1 r e r „^f ono . n^ list’s monthjy review says: of tS I. mdlC l at /“ ria of state of trade have lately become a little more, conflicting than earlier i n the autumn. This, on the whole, is a good sign, for it means that oie or two sporadic rays of light have begun to penetrate the general depression. To summarise the good and the bad signs among the former some slight improveprevsous months ns by , t M®. oct ° ber trade returns, the greats stajihty of some wholesale prices since October, and the improvement in tone S&e “ m °- St ° f the ‘entile - Th ba f Blgns lnc luded the poor October iron and steel production figures the increase m unemployment in heavy industries, and the note Of uncertainly fS," 1 ' "fts 4 ■*”’"? uons. io these must be added such lecent i? reneh and Amcricnn prices! 5 ' aDd the further break in wheat