MONEY AND MARKETS

Otago Daily Times, Issue 21267, 23 February 1931, Page 7

MONEY AND MARKETS

STOCK EXCHANGE NERVOUS. ACTIVITY IN TIN SHARES. BIG ADVANCE LAST WEEK. | (United Press Association.) (By Electric Telegraph —Copyright.) LONDON, February 21. (Received Feb. 22, at 5.5 p.m.) The Stock Exchange has passed through a very uncomfortable week, and both Investment and industnal stocks have undergone serious depreciation. All markets are in a nervous condition following the speeches of -Mr Philip Snowden and Mr Lloyd George, the Chancellor’s announcement _ b ?*°o r garded as an indication of his intention to impose additional taxation on unearned incomes. This has bleu*, t about heavy selling of gilt-edgeds, with a consequent fall in values. As Statistics remarks, the markets have fallen a victim to Budget fears, while the Labour Government’s belated admission that a national crisis exists has been calculated merely to make matters worse in the absence of any definite proposal to deal with the situation. With such conditions prevailing it is natural that Australian stocks have been fuithcr marked down. They mostly became lower every day until yesterday, when the announcement that maturing treasury bills would be repaid had an immediate .and salutary effect, and several Commonwealth and States stocks hardened as the result, it is believed, of speculative buying by professional operators. Such purchases are not surprising when it is recalled that at recent prices some of the stocks give enormous returns. New South Wales o per cents, redeemable in 1932, purchaseable at 8 to give a return of seven guineas per cent., would now give per cent., assuming repayments at 100 in 1932. Several others yield over 10 per cent. The Australian Exchange position at last begins to show slight signs of improvement. Some people are talking about the possibility of an early reduction of rates. It may be that the wish is father to the thought, but it is a fact that the outside market and the banks here are now charging the same rate, and it is reported that business has been transacted in Australia at rates lower than those- quoted by the Associated Banks. The repayment of Treasury bills is also regarded as an indication of an easier exchange position. , ' • A more optimistic feeling prevails in the tin market, and prices advanced nearly £7 per, ton during the week owing to the expectation of announcement, which was made yesterday, _ of the Government’s approval of the tin restriction proposal. This caused much activity in the market, and yesterday’s turnover was nearly 1000 tons. According to the Morning Post the reduction contemplated amounts to 22.3 per cent, of the output, and exports to the participating countries in 1929. This; it is estimated, will reduce ‘ the production during the current year between 145,000 and 150,000 tons, or rather less than the anticipated consumption, so that the excess stocks should gradually diminish. Butter consumption has recently been on a large scale, and though the dernard eased a little • towards the end of the week it has been sufficient to clear heavy arrivals. Nearly all the Continental countries are now on the lowest production, consequently the demand from them has been maintained. Considerable quantities, especially of unsalted, hsive been shipped from this country. The weather, however, is comparatively s warm, and it will not be long before the Continental production increases materially, so importers do not expect the present demand to continue much longer. Consumption in Britain appears to be increasing. The Empire Marketing Board’s efforts to popularise Empire butters in the north of England are meeting with considerable success, and a number of large London stores are pushing it. Unfortunately, some Australian butter which these stores are selling is not a good advertisement for Australian dairy farmers. With laudable patriotism Sir George Fuller (Agent-general for New South Wales) . ordered Australian butter from a large West End store, and received an article which had a very bad flavour. He promptly went to the store to investigate, and found that there was not a box of Kangaroo butter in the place. All they had was second quality. As a result Sir George’s tests a repetition of this sort of thing is unlikely. Retailers are now charging 15d alb for the finest Australian and 16d for New Zealand, and about 2d less for second grades.