MONEY AND MARKETS

Southland Times, Issue 23334, 19 October 1937, Page 3

MONEY AND MARKETS

SHARE MARKET INVERCARGILL STOCK EXCHANGE METAL SHARES IMPROVE There was a firmer market for some of the leading industrial companies’ shares on the Invercargill Stock Exchange yesterday. Metal shares also showed an improvement. Quotations were called as follows: — GOVERNMENT DEBENTURES

TALK OF SLUMP DEPRECATED

HEALTHY STATE OF BRITISH MARKETS ANXIOUS FORTNIGHT OVER (Received October 18, 6.30 p.m.) LONDON, October 17. By general consent the past f°rtnight has been the most anxious on the Stock Exchange since 1929, but fortunately the worst seems over. City business men all agree that talk of a slump is fantastic. , The Economist declares that tne majority of industrialists endorse t e opinion of the Prime Minister (Mr Neville Chamberlain) and Chancellor of the Exchequer (Sir John Simon) that recovery has not yet reached its peak. There is little real evidence in British national economy to suggest that a real slump is ahead. On the contrary, many industries have spectacularly increased their rate of activity in the recovery years. There is no sign of a serious decline in the purchasing power of the public. Even the ex P°rt trades are less vulnerable than in 1929, as primary producing countries are no longer dependent on foreign loans. The economic defences are thus sounder than in 1929, and a repetition of such a slump is most unlikely. . The Economist’s quarterly analysis of industrial profits also makes slump talk seem ridiculous. The rise in profits has been so generous that shareholders have received increased dividends at a time when industry as a whole is financing capital growth from its own resources.

The index shows that business activity as a whole is running to record high levels; therefore it appears that the prices of many industrials are below reasonable levels. The present state of the commodity markets is described as convalescent. Wool remains disappointing and little business is being done at Bradford. Uncertainty about the future trend of prices has undermined the confidence of all sections of the industry, but it is believed that there will be plenty of business once a reasonably stable price is re-established. The decline has been greater than anyone expected. Certain wool buyers and top-makers have been bears, and many are still offering forward tops at prices well below the present values. Butter remains firm with a strong undertone. The advance retail price has not affected sales, but buyers are becoming cautious and are operating from hand to mouth. _ The cheese market is featureless. SYDNEY STOCK EXCHANGE INVESTORS RELUCTANT TO TAKE RISKS (Received October 18, 9.10 p.m.) SYDNEY, October 18. Investors on the Stock Exchange today appeared reluctant to undertake heavy commitments, pending the arrival of further market advices from overseas. The tone of the market was fairly steady, with a tendency to harden.

MELBOURNE SALES The market today was generally inclined to be better, on the improvement overseas, but business generally was fairly quiet. Sales were:

mining returns CLUTHA RIVER (United Press Association) DUNEDIN, October 18. For the week ended October 15 the Clutha River dredge worked 130 hours for 3440 z of gold. MATAKI AUCKLAND, October 18. The Mataki return for the week ended October 17 was 30oz for 129 hours’ work and 9500 yards.

Sales were: £ s d Bank of New South Wales 33 17 6 Commercial Bank of Sydney 21 2 0 Colonial Sugar 47 5 0 Automatic Totalizators 19 6 Burns Philp 2 18 6 British Tobacco 2 9 3 Tooth's Brewery 2 14 9 G. J. Coles 4 14 0 David Jones 2 0 3 Anthony Hordern 18 9 General Industries 19 6 Hume Pipe 1 0 3 Felt and Textiles 2 2 0 Mark Foy 1 3 6 Goldsbrough Mort 1 13 4'/2 Morris Hedstrom 1 9 0 Henry Jones 2 9 0 Fairymead Sugar 1 12 0 Gibson Howes 1 12 6 Manly Gas 1 4 0 Nestles (pref.) 1 15 0 Wright Heaton 7 12 6 Mount Morgan 10 8 Broken Hill Propty. 3 17 9 North Broken Hill 3 3 0 South Broken Hill 2 1 101/2 Kuala Kampar 18 6 Rawang Tin 10 10 Larut 16 6 Placer Development 3 10 0 Taranaki Oil 7 2

£ s d Commercial Bank of Australia 17 6 Howard Smith 1 1 4 British Tobacco 2 9 0 G. J. Coles 4 14 0 Australian Iron and Steel (pref.) 8 0 Dunlop Perdriau Rubber 1 2 5 Goldsbrough Mort 1 13 6 Electrolytic Zinc (pref.) 2 16 3 Mount Morgan 10 9 Mount Lyell 1 19 6 Broken Hill Propty. 3 8 0 North Broken Hill 3 2 9 South Broken Hill 2 1 lO'/a Zinc Corporation 5 15 0 Emperor 11 9 Loloma 19 3