MONEY AND MARKETS

Otago Daily Times, Issue 21361, 15 June 1931, Page 7

MONEY AND MARKETS

i STOCK EXCHANGE BRIGHTER V '9 APPLE PRICES MAINTAINED GOOD DEMAND FOR BUTTER (United Press Association.) (By Electric Telegraph—Copyright.) LONDON, June 13. (Received June 14, at 5.5 p.m.) The Stock Exchange has assumed a decidedly brighter tone, although the German news is disquieting, and most markets are showing firmness. According to some newspapers one of the chief influences operating is .the growing hope that thfe MacDonald Government will be defeated next week, followed by an immediate dissolution. On this assumption there is a considerable amount of bear covering, especially in home rails, which sent prices up all round. Giltedgeds, of course, participated in the upward movement and a most satisfactory feature was a furthering improvement in Australian stocks, which have been consistently moving higher from the moment it became known that the conversion loan was to be on a voluntary basis. On this subject the Economist writes: “ There is no from the standpoint of Australia’s credit that the decision f is wise. So, too, is the determination to press forward with other economies, for in addition to the direct substantial contribution they will make to the rehabilitation of the national finances they will remove any fear of the bondholder being singled out for. special treatment. The news that the Opposition is now co-operating is also encouraging, for it holds out the hope .that Australia is now on the threshhold of a united national effort. Once assured of this the city will be eager to render Australia all possible assistance.” \ An indication of the improvement in the financial conditions may be found in the renewed activity in new capital issues this Week. In addition to the New Zealand £5,000,000 loan an issue of £3,000,000 in debentures for the Buenos Aires Great Southern Railway has been arranged, and an issue of about £5,000,000 by Woolworths. Apple 'prices have been fairly well maintained till now, but were becoming rather easier and importers will not bo surprised if they decline somewhat during the remaining month of the season, when they come into competition with European §oft fruit. Although butter prices have given way slightly the consumptive demand remains good and at present the retail price is 14d per ,Ib. 11 There is not much likelihood of any falling off. The recommendations of the committee regarding the marking of blended butter has aroused considerable interest among importers, but no one seems to have a decided opinion about what effect the recommendations, if adopted, will have. It is generally thought that they may cause the elimination - of foreign butters from blends, and this should cause an increased demand for Australian and New Zealand butter. 1 The agitation by newspapers against Siberian butter continues, although the imports thereof are unimportant, last month’s only amounting to 30,584 cwt out of a total of 723,165 cwt. In the face of this outcry a number of leading multiple stores are advertising that they do not supply Russian butter and one of the largest blending firms in the country announces in trade newspapers that “ we do not buy or sell or handle any Russian butter.”