A CHEERFUL VEIN

Poverty Bay Herald, Volume LV, Issue 17452, 29 December 1930, Page 7

A CHEERFUL VEIN

HOME STOCK EXCHANGE - • VY i 4*l • CONDITIONS REVIEWED PRICES STILL FALLING (Elec. Tel. Copyright-United Press Assn.)' LONDON, Dec. 27. ' The Stock Exchange closed for the Christmas holidays in cheerful vein, the markets having received unexpected blip in the reduction of the New., York re-discount rate to 2 pel; cent:, which is the lowest on record. It is generally believed that the reduction was made with the idea of assisting American conditions, and cheating tne decline In stocks which recently had been seriously attested by bank failures. The reduction had an immediate effect on the Stock Exchange, ail British funds advancing sharply, and the moveiiient is spreading to many other sections. Unfortunately, Australian Government stocks did not participate, their-tend-ency being downward. Other Australian securities also show weaknesses, which is not surprising in view of the decreased prolits. An analysis -of the bal-ance-sheets of eight leading Australian companies shows that the net profits in 1930 were £1,191.843, coruparetf with £2,053,959 the previous year, a decrease of almost 42 per cent. The Economist’s review states that trade is once again far from cheerful, leading the reviewer to state that the faint promise oi greater stability held out by some Cbtober-Novembei* trade statistics has once more ended in disappointment. Wholesale prices after a • period of six or seven weels of relatively greater stability, began to fall with renewed precipitancy at the end of November. ’ BACK TO PRE-WAR LEVEL It seems highly improbable that Now I'ear’s Day will coincide with the return of the Economist index number* to the pre-war level. The unemployment returns lately have continued to grow in contradistinction to the normal. preChristmas tendency. The last available weekly figures showed signs of a little improvement, receding again the.following month. Here, too, there is’no sign that the general trend of thp curve had ceased to be downwards. After l this dismal foreboding, it is pleasant to read in the Financial Times that evidently a brighter prospect opens out before the tin industry. The Producers’ Association announces that 90 per cent, of the world’s output- has bound itself to a defiuite agreement, under which each country’s output will be restricted to a specified percentage._ The reduction in the American dis- ( count rate resulted in the filip in giltedged stocks on Christmas Ever, ; all British and Indian funds advancing appreciably. Australian stocks did not v participate in the rise, and the few in which there was dealing showed a drop of fil. : . . The Financial Times in an editorial, welcomes the Australian loan • result, as proof that investors are willing to smooth the way towards the unpleasant task of reducing the cost of production. Th« newspaper sa vs the Premiers’ conference resolutions are still, unimplemeilted,: but if the workers are willing to p atch the investors’ action, it will be a long step forward.