MARKED FALLING OFF

Otago Daily Times, Issue 23689, 22 December 1938, Page 12

MARKED FALLING OFF

STOCK EXCHANGE BUSINESS THE POSITION IN SYDNEY (United Press Association) (By Electric Telegraph— Copyright) SYDNEY, Dec. 21. (Received Dec. 22, at 1 a.m.) Reviewing conditions on the Stock Exchange, which will close for the vacation to-morrow, a leading member of the Exchange, to-day said there had been a marked falling off in business this year, due mainly to a drop of £14,000,000 to £16,000,000 in the wool cheque and to a lesser degree the unsettled international position, which caused many anxious moments. On the other hand, there had been no real selling pressure, merely a desire to mark time and await developments both at home and abroad. This state of affairs was likely to prevail in the New Year. He then referred to New Zealand's position, saying that in consequence of the Dominion Government's financial measures he doubted whether New Zealand investors would be able to buy on Sydney for some time. There had been some buying and some selling, and but for the emergency measures the buying would probably have exceeded the selling by New Zealand.

He added that if Mr Savage and Mr Nash read the reports of their treasurer they would find that the Australian market took up a large amount of New Zealand loans, but under the present New Zealand conditions no Australian would think of it. Experienced financial men here looked upon the New Zealand' action as unwise. It would have been far better to have free actions between New Zealand and Australia, trusting to Australia at some future time being again willing to take up New Zealand loans.