MONEY AND MARKETS

Otago Daily Times, Issue 22098, 31 October 1933, Page 9

MONEY AND MARKETS

STOCK EXCHANGE CHEERFUL PLENTIFUL SUPPLY OF MONEY THE BUTTER MARKET DULL (United Press Association.) (By Electric Telegraph—Copyright.) LONDON, October 28. The Stock Exchange quickly recovered from the fit of despondency which followed Germany’s bombshell, at Geneva, and a cheerful feeling is now displayed in all markets. This is attributable, as the Statist says, to a variety of factors, the chief of which, probably, is the renewed flight into sterling of . securities caused by developments in France, the United States, and elsewhere.;! President Roosevelt’s latest declaration is taken as a definite “ bullpoint ” for gold mining shares, as was also the uncertainty created by the defeat of the French Government. For similar reasons-an influx of foreign funds into the gilt-edged market was reported. The domestic demand also reasserted itself under the constant pressure of a heavy floating stock af money unable to find profitable investment in other directions. This factor has been all the more potent because of the confidence engendered by the soundness of the national finances.

An illustration of the plentiful supply of money is afforded by the 1 Southern Rhodesian £2,250,000 loan, for which, according to ’ market rumours, over £90,000,000 was subscribed by 30,000 applicants, with the result that the Bank of Erigland was almost snowed, under, and was unable to issue the letters of allotment on the day that the subscription lists closed. There was a rush for this stock to-day at 1| per cent, premium. ''

Industrial shares have again come into favour, notably those of brewery, tobacco, iron and steel, and textile companies. Some idea of the activity of the markets may be gathered from the fact: that the ♦number of Sales recorded during the last week, not counting Saturday, ranged from 7753 to 8879, daily, , The new tin agreement is expected to have a good on the prices of metal and tin shares. The Financial; Times points out that' at the recent prices most of the low cost tin producers have been able to make profits, even although they have been working only at one-third of their capacity. Shine have been actually able to re-enter the dividend paying list. These fortunate companies will derive the greatest benefit ;from the permission to increase their output. By December 7, when the International Tin Committee holds its next meeting, the American outlook should be clearer. Indeed, the remarkably successful .tin plan may remain in operation indefinitely, and prove a model for the advantageous regulation of many another primary industry.

Although the stocks of. butter in cold store were materially reduced in the first fortnight in October they now amount to 795,000 boxes, against 965,000 a month earlier. The market has been dull, with prices easier. ' This is probably due to the statistical position, for the total afloat to the United Kingdom from Australia, Mew Zealand, and Argentina amounts to 846,880 boxes, compared with 817,370 a year ago. A reduction in the price of . Danish butter also fended to weaken the market. This reduction is apparently due v to a diminution in the amount purchased by Germany, >fi

, It is also possible that the consumptive demand here was affected by many retailors raising the price o£ Australian and , New Zealand butter to ( ;ls, Id per lb. ' Consumers resent paying! the extra penny, and some preferred to. give Is 4d Jor Danish. Next week the retail price will be, brought down, to Is in ,the hope of stimulating the demand. . Australian eggs are selling briskly at firmer prices. This is due to the colder weather, causing smaller production in England and on the Continent. An interesting . feature is the increase; in the number of poultry farmers in England and the. consequent greater production, which resulted in the decline in the importation of foreign supplies. In ttic first nine months of 1038 the total imports to Britain were, roughly, 33.000. long hundreds, compared, with 10.000. in 1931. Australian eggs continue to grow in popularity, and more grocers are stocking them'. This is partly due to the trade’s publicity propaganda i campaign in advertising them in-’ the larger newspapers as well as in; the grocery trade papers, but chiefly to 1 the . excellent quality of the eggs. -■ . THE BACON INDUSTRY,. LONDON, October 29. . The Ministry of Agriculture announces that the Home bacon industry in a single bound has reached a position that it had not expected to attain before 1935, which will necessitate a further reduction of 16 per cent, in the of foreign bacon. At the present, rate the ■ Home consumption is, -.about 3,000,000 cwt. The 1930 output' i(the latest year for which figures are available) was 1,750,000 cwt.