A DISTURBED WEEK

Otago Daily Times, Issue 22487, 4 February 1935, Page 9

A DISTURBED WEEK

STOCK EXCHANGE CONDITIONS EVIDENCE OF UNDERLYING SOUNDNESS i BUTTER MARKET HARDENS ' : *:■' (United Press Association.) , \ (By Electric Telssraph-^Copyrlgbt.) , ,'".]] ' LONDON,' February 2.j •(Received Feb. 3, at 6.30 p.rii.) "■''The Stock Exchange passed through a ■ost uneasy week in a manner wh'm affords a splendid illustration of. the underlying soundness of markets. The principal cause of the anxiety was a disturbance on the Baltic Exchange arid in commodity markets, the first resulting from the failure of the Strauss Company, with liabilities . amounting to nearly £19,000,000. The news of this disaster

naturally "had a depressing effect, but it

was soon ascertained that the losses had < 'fallen principally on big banks dnd'coin- " paniea which Were ; . able ,to bear them. Following this came the news of diffi-

culties in • markets, for. two such, widely diverse commodities as shellac and pepper. Meetings of bankers and others

interested in these; affairs were being

held, and it is generally expected that matters will be arranged without untoward results. The . last disturbing element was the slump in the Yellowdine group of mines in West Australia following a disappointing cablegram which damped the ardour of speculative operators in more than one market. But after

two days' excitemept, with .considerable

panic, the selling market grew calmer i and'yesterday there was a general steadi/ness in West Australians., > -The - butter trade continues to improve.

'■ 'Prices, have steadily hardened until toi.:i day:and-the choicest Baited.New-.Zealand is fetching 92s per cwt> Australian 80s, which is -15 - higher'than the beginning

of January and 20s higher than the beginning of December.' ■ Several causes have contributed ;to this .satisfactory ; Stare of affairs. The first is the con- , tinuance of a strong consumptive demand ■;which; resulted inv-aV reduction of: cold •tored stocks to about 400,000 boxes, or, roughly, about one week's consumption. Another ball .'factor in the market, is the

fact- that New Zealand is shipping considerable qnantities'to the United States, '$ which country has also been buying here. Then;there Was the news of a severe drought in New Zealand with a conse- "•". fluent heavy redaction ■ in butter- produc:tfon. . thiereforv are taking a very firm will cause retailers to advance their prices by i-periny:^r'twopence per lb, but it is not expected that this will mean any serious reduction in consumption. The egg market is still depressed.. A

Urief cold snap gave; hope of some im-

provement, ; hot ij • springlike' ;,':■':WeatLcr : quickly rethrned'ahd,;'prices remain at their recent low level,. Australians ranging, from 7s 3d to 9s according to weigbt.

'.'"; OUTSPOKEN CRITICISM BONDONj February.2. :-, (Received Feb. 3; >at-8.3 p.m.) '!:'• Speeches 'bychairmen it the-meetings •*of ■ the r " big five ** banks have "si - usual 3"heft*-"read ; with? 'particularly''the reraaTkff; made'in respect of ?the .nationalisation campaign.- 1 ~. :■'■'■'■■'■ .'■A'} Commenting editorially thereon The •.iTimes'says:-"There can" hardly be a , competent critic familiar }vith the history of central banking-who would •re- - gard nationalisation, as understood by the Labour Party, as anything short of a calamity. The subordination of mOne- = tary- policy '". to : 'the-exigencies of -party politics 'would inevitably, lead :to im"'■'mediate disaster, and who could guaran:tee .'thaiithe protagonists of Socialism, . viice. in power,would be immune from /Such: temptation? Nor would, the nationalisation of joint-stock banks ::;pii)ve ; any' less damaging; to the interests '■- ©f the nation, what motive can lie • behind: .this: clamour far nationalisation -; except a desire to effect violent changes In the * manner in which these institutions conduct which -would definitely be directed to political y«ids.M ; '