BETTER TONE

Southland Times, Issue 21002, 7 February 1930, Page 7

BETTER TONE

AUSTRALIAN STOCKS

SOME REASSURING POINTS

ENGLISH PRESS VIEW (United Press Assn.—By Telegraph—Copyright.) London, February 5. The Morning Post’s city editor says: “There is a better tone characterizing Australian stocks. While her economic crisis must be of long duration the situation is being quietly and soberly considered, and it is not without its points of reassurance. Some causes responsible for the present conditions are of a character only known to the people of Australia by actual experience, because formerly the most friendly English criticism seems to have been misunderstood in Australian political, if not in financial, circles. The present situation, especially in regard to exchange, is aggravated by a heavy fall in Australia’s chief exports, especially wool, but there is a general consensus of opinion among the banks and financial houses receiving advances from Australia that the situation is materially contracting Australian imports. While this is not encouraging to Britain’s trade, it. is undoubtedly necessary in the interests of Australia. Moreover, this curtailment is more likely to affect the United States than anyone, she having pressed luxury articles on the long-credit system upon Australia for some time. LOA N NEG OTIATIONS SUM OF 5,1X10,900 DOLLARS. (Rec. 7.55 p.m.) New York, February 6. It is understood that the Sydney loan negotiations are for the sum of 5,000,000 dollars. The terms and rates it is said have not yet been agreed upon. It is wholly conjectural, but there is good reason to believe that, the bonds will bear a five per cent, coupon, and will be sold at prices which will bring the purchasers six per cent. The feeling in Wall Street is that since Sydney never has entered the local market before, and due peculiarly to bearish news from Australia recently, the underwriters will be compelled to offer securities at attractive prices to assure their quickly being bought up. The depression in the bond market here generally, and foreign issues particularly makes this even more certain. One well informed banking statistician stated that the Sydney authorities probably well realized this even before deciding to enter t.he local market. It is understood that Mr J. B. Were, of Melbourne, is handling the Australian negotiations. RUMOURS DENIED INTEREST PAYMENTS. (Rec. 9.35 p.m.) Canberra, February 6. Vigorous denials were given by the Prime Minister and Mr Theodore 10-day to the rumours cabled from London that the Commonwealth and States were contemplating a postponement of their interest, payments abroad. Mr Theodore, the treasurer, added: “I have not heard of the rumour which has no foundation whatever. There has been no consideration of such subject by the Commonwealth or the States.” PRIVATE BUILDING EFFORT TO RELIEVE POSITION. Canberra, February 6. The Commonwealth Bank has agreed to advance .£50,000 to finance private building in the Capital territory, thus relieving a serious position.