SHARE VALUES FALL

Otago Daily Times, Issue 26693, 12 February 1948, Page 7

SHARE VALUES FALL

AUSTRALIAN PRICE BREAK READJUSTMENT OF PRICES TO PROFITS Rec. 11.30 p.m. SYDNEY, Feb. 11. At least another £2,500,000 was wiped off the value of share prices in further falls on the Sydney Stock Exchange to-day. To-day’s losses follow a decline in values of £ 14,000,000 since the week-end. Commonwealth officials are not at the break in values on the Australian stock exchanges, which has followed setbacks in the markets, in both the United States and Britain. They reject suggestions that the easing in prices is a forerunner to a depression. Their view is that it is a realistic readjustment of prices to profits. , In some cases returns at the present market Values on stocks listed on Australian stock exchanges are lower than the interest rate on Government, bonds. Officials say that speculation was responsible for running wheat prices in the United States to an absurd peak. Values had receded from this level, but the fact remained that a large section of the world was still hungry and wheat would continue to demand high prices. The officials said that there was no sign of a falling off in wool prices. They believed that there may be a slight weakness due to uneasiness, but did not think, the weakness would be permanent. Permanent price setbacks in wool and wheat, they, admitted, could be disastrous for Australia and would make more intense its existing dollar difficulties, but they did not believe this possible in a world hungry for wool and wheat. . In Canberra, the Prime Minister, Mr J. B. Chifley, said the Government did not propose to reduce the Value of dollar imports below the limits already planned. He was commenting on the accentuating of Britain’s: dollar crisis revealed this week by the Chancellor of the Exchequer. Mi’ Chifley said the limits set were between £80,000,000 and £90,000.000 in 1947-48, and between £60,000.000 and £70.000.000 in 1948 : 49. Treasury officials said Australias programme of dollar ; imports would probably leave a dollar deficit of more than £40.000.000 this year.