MARKET REVIEW

Southland Times, Issue 21195, 23 September 1930, Page 7

MARKET REVIEW

EINANCE AND TRADE '■ s . - / ■ . ?■ — . . '.l'. 1 DUMPING OF RUSSIAN WHEAT A SERIOUS SITUATION (United Press Assn.—By Telegraph—Copyright.) London, September 20. Australia’s financial position continues to receive much attention from the .newspapers and the writers generally, while recognizing the seriousness of the situation, are inclined to take a somewhat more hopeful view of the future. Thus the financial writer in the Spectator, after stating that the fact and the causes of the financial depression in this country and in Australia are very similar., says the only hope for Australia and Great Britain is to face manfully the level to which Australian Government stocks have fallen, causing some anxiety, but, as far as can be ascertained, there is no disposition on the part' of large holders to part with their stocks at present prices. The only sellers appear to be small holders who. as mentioned a fortnight ago, have taken alarm at some extremist talk in Australia. The present certainly seems a good opportunity for investment in Australian stocks, for all of them show an excellent yield. Thus Queensland 5 per cents, 1940-60, at their present price, £B4 10/-, give a yield, allowing for redemption, of 6.15 per cent, New South Wales 5 per cents, 1935-55, a similar yield of 6.375 per cent, and Commonwealth, South Australian and Western Australian 5 per cents yield 5.9 per cent. Stock Exchange Quiet. The Stock Exchange generally has relapsed into a condition of lifelessness which is very disappointing after the briskness which characterized the beginning of the month, and business is on the smallest scale, the public showing no interest and professional buyers marking time. Giltedgeds have been fairly steady with the exception of Australian, but foreign bonds have been weak, German bonds leading the decline as a natural sequence of the election results. Industrials have been quieter than for some weeks past and mining shares ate generally lower.. The course of the London wool sales is regarded as somewhat better than expected, and the firmness of super Merinos is looked upon as encouraging. A Bradford correspondent, commenting on the Australian and London sales, says the main fact emerging therefrom is that the raw material is still being obtained at prices at which it should eventually be conducive to an extensive repopularizing of wool commodities. On the whole wool is still very moderately priced, and nothing that has happened to the raw material department so far offers the slightest pretext for any stiffening of retail prices, but rather the contrary. It is justifiably argued, that a more active demand from the cloth end of the trade is badly needed. There has been some improvement in this respect recently, but further progress is necessary and is anxiously awaited. The main fact to-day is that cheap wool continues to pass into the possession of the trade and is gradually making its appearance in the form of cloths produced at prices which should eventually bring about in the retail section a state of affairs conducive to a much more active demand for wool manufactures. Russia’s Wheat Exports. The international wheat markets continue to be dominated by the dumping of Russian wheat. It is known that since September 1, 85 steamers, aggregating 573,000 tons, have been chartered to carry grain from the Russian Black Sea ports to Mediterranean, Continental, British and Scandinavian ports. There have been also a number of charters of which particulars have not been disclosed,.and it is believed that 120 ships arc now under charter for early shipment, so it is evident the intensive Russian shipments must continue for some time. From the beginning of the year to September 17, Russian exports totalled 6,853,000 quarters compared with nil last year. The London Grain Reporter says: “Whether this movement constitutes a

threat to Canadian. Australian and Argentine exporters may be debatable, but it is significant that all three markets are chartering with extreme caution in contrast to Russian shippers.” Another newspaper writes: ‘‘The situation created by Russia is serious, not only from the viewpoint of the growers and other countries, but in regard to the world trade depression, and values are being depressed just when the world so urgently needs an improvement in prices, which alone can presage an industrial recovery.” RUSSIAN WHEAT-, OPERATIONS IN CHICAGO. (Rec. 9.20 p.m) New York, September 22. A message from Chicago states that Russian wheat operations in Chicago will be undertaken by the business conduct committee of the Board of Trade: