AUSTRALIAN CONDITIONS

Taranaki Daily News, 22 August 1930, Page 15

AUSTRALIAN CONDITIONS

RURAL PROSPECTS GOOD. FALL IN INDUSTRIAL PROFITS. Melbourne, Aug. 13. From a stock exchange point of view condition© financially continue to tighten and although there i©a moderate demand for Commonwealth loan© at late rates conditions in other sections of the market are dull with an the rather copious rain©which have fallen over the southern nart of Australia during the past week Eave given further hope for the prosnect of a record wheat yield; in addition! the pastoral outlook has been much improved. Coincidentally with fb-Jc rains, new© is t.o hand from London that the outlook for the Cl ” re wool, clip is somewhat improved by reason of th© reduced quantify oi stock© on hand on the Continent. Balance-sheets of industrial- eoi D anics are now coming to hand freely End for the most part refer to financia. operations for the year ended June 30. With the exception of one or two isolated cases profits are on a much lower scale than formerly and the sharemarket has had to sutler further shocks so far as the rate of the final divide .id Is concerned. For instance, when Elder, Smith and Company, Limited, the we.lknown pastoral house, reduced its interim dividend in February from 10© to 7 rjer cent, per annum, it had been expected that no.further reduction would be necessary. However, a cumulative reduction in dividend has since been announced and this state of affairs is bi common with many other industrial concerns. The industrial outlook is certainly very obscure. That the present economic position is forcing .local Government bodies to reduce their expenditure has been demonstrated in at least two qnarteis during during the past week. For instance, the Melbourne and politan Board of "Works has decided to restrict loan expenditure this year rd £1.286,000, a© against £1,972.000 last year, while amended estimates of the Sydney City Council for capital outlay this year on its electricity department have been reduced by £500,000.