MONEY AND MARKETS

Sun (Auckland), Volume 1, Issue 63, 6 June 1927, Page 3

MONEY AND MARKETS

(CONTINUED) “BETTER AND BETTER” FINANCIAL SITUATIONWHOLE TONE HOPEFUL By Cable. — Press Association.—Copyright Reed. 8.40 a.m. LONDON, Saturday. “Every day in every way the giltedged market becomes better and better,” is how a writer in one of the financial newspapers describes the position. This is certainly the case with Dominions stocks, the recent success of the New South Wales issue having had an excellent effect, and the New South Wales and New Zealand’s last loans are both quoted at one-half per cent, premium. This good position is largely attributable to the easier monetary conditions following on the payment this week of about £50,000,00 interest on the 5 per cent, war loan, though the withdrawal of £500,00 in gold from the Bank of England yesterday had a somewhat disturbing influence. The markets closed with a confident tone, and the-prospects therefore seem favourable lor the new Australian loans, for which it is understood preparations are being made in the Commonwealth. Queensland and Victoria are mentioned as likely borrowers, though the order in which they will come has apparently not yet been settled. The satisfactory absorption of recent issue’s may be regarded as an indication that Australia is once again in the Stock Exchange’s good books, and that the Dominion stocks are becoming increasingly popular, especially those of longdated description, giving a yield of about 5 per cent. The position of the wool trade is summed up in the April-May bulletin of the Wool and Textile Delegation as follows:—“Direct imports have re-cently-'been heavy, especially from New Zealand, but machinery activity has been fairly well maintained. ‘‘The visible supplies of wool are extremely low, and with good clearances in all the primary markets, little pressure is expected from the supply side.” BRADFORD TOPS Quotations for tops are well maintained in consequence of the wool position. In spite of the poor demand from spinners and manufacturers a slight improvement in business is now being reported in some sections. On the whole, the wool prices, especially for fine grades, do not seem likely to suffer much from the reaction. FRUIT MARKETS Soft fruits are now arrinving freely, and all the markets are handling large quantities of French and Italian cherries and Spanish apricots. Consequently the demand for apples shows some falling off, and the prices have weakened slightly. The whole posi lion is by no means unsatisfactory, and the demand for keeping sorts, like Sturmers, is a strong feature of the trade. There have been large sales to Germany, which continues to pay high prices, both for direct shipments and for apples transhipped from Britain. A member of one principal London importing firm, who recently visited Hamburg, says that never in his long experience had he seen such keen demand and spirited bidding for apples as he saw there. There were Tasmanians by the Port Hunter, of which 30,000 cases were cleared at prices ranging from 11s to 20s. i Large quantities of Australian and New Zealand apples are also going to Scandinavia. This strong Continental demand is undoubtedly responsible for the maintenance of prices Here. The position of affairs in Germany seems to be steadily improving, notwithstanding the collapses which recently occurred on Berlin and pther Bourses. According to the latest report of the Trade Research Institute quoted by the “Financial News” Berlin correspondent, the slow*, gradual progress which the institute reported for the three months, November, December and January, has, during the subsequent quarter, continued with accelerated tempo. The number of fully unemployed, which in January was 1,800,000, had fallen to 870,000 at the end of April, and 750,000 at the end of May. The report continues: “The production and turnover continuously increased during the last quarter. The especially prosperous industries are textile, chemical, electrical, technical, automobile, shipbuilding and machinery. The whole movement is due to an increased demand in the internal market.” The report adds: “The extraordinary affair of Black Friday on the Berlin Bourse was entirely artificial and unnecessary. The situation has produced by the big banks, which have been largely responsible for the inflation of the prices of stocks by the encouragement they had given to customers to buy liberally, placing credits at their disposal.”—A. and N.Z. MINING NEWS MAORI LAND.—For the week ending June 1, the manager reports: The crosscut east has been advanced sft., making a total of ISft. driven to date. There is no appreciable change in the nature of the ground. LUCKY SHOT.—Reporting for the week ending June 2, the manager states:— “Driving north-east on the No. 1 reef has been advanced a further distance of 6ft., and still continues to show strong gold. There appears to be a lot of stringers of quartz making on the hanging wall, and the country encased is everything that could be desired. A rise has been started on No. 2 reef, and is up a distance of Bft. This reef is pinched at this point and showed gold when broken down. Now that the directors have decided to erect a battery, this work is necessary to get a block opened up ready for stopeing.” GOLDEN AGE. —For the week ending June 2, the manager reports: “The drive on the footwall of reef has been advanced a further distance of Sft. for the week. As reported by wire on 27 th, we saw strong daubs of gold in a leader running , parallel with the reef. We again reported on June 2, ‘selected 51b. picked stone.’ T'he gold is not confined to one leader, as there is a conglomeration of leaders and rubbly quartz, and at the present we have no idea as to the extent of this. No quartz has been broken from the main reef. When the drive on the footwall has been driven 50ft. we will then hun a cross-cut through the main reef to ascertain its width and value.”