BRITAIN’S DULL MARKETS.

Timaru Herald, Volume CXXV, Issue 18501, 24 February 1930, Page 9

BRITAIN’S DULL MARKETS.

Stock Exchange Depressed. .WHEAT AND BUTTER REPORTS.. lUnlted Press Association—By Electrlo Telegraph—Copyright.) (Received February 23, 5.5 p.m.) LONDON, February 22. Australia’s financial position has been receiving much publicity in the newspapers and the Loan Council’s statement, indicating a policy of “root and branch economy,” as one financial writer calls it, has received a very “good press.” For Instance, the “Daily Telegraph” says: “The Council’s decision may have been Inevitable, but credit must be given to those in power for facing the position resolutely. If Australia does not swerve from its declared sinking fund policy, it will not be long before a definite benefit is seen in the higher prices of existing stocks.” “The Statist,” with its usual caution, says: “While the statement is decidedly reassuring, much must defend on the duration and severity of the economic crisis in Australia.” “The Morning Post” says: “The movements of the Australian exchange at the beginning of this week, once again indicated the strained position through which Australia is passing. Nevertheless, it will be noted, that after the first sharp decline, Australian loans are now keeping comparatively steady, and this undoubtedly is due to the fact that while the serious character of the economic crisis in Australia is fully recognised, anxiety has been lessened, to some extent, by the evidence afforded of the adequate recognition of the position by those in authority in Australia. The fact that £7,000,000 of gold, are now on the way from Australia, is an indication that the authorities perceive, not merely the necessity for the maintenance of loan obligations, but are doing everything possible to relieve the strain on the Exchange.

Stock Exchange Depressed. The Stock Exchange is in a state of dullness and hesitancy. Not even the satisfactory Hatry group settlement, which passed off without any casualties, the strong bank return, and favourable monetary conditions, have proved sufficient to overcome the prevalent dullness. The most disappointing section of the market is industrials, but gilt-edged stocks have also been depressed, and English railways failed to respond to the announcement of satisfactory dividends. Apparently much of the depression is due to apprehensions regarding the Budget, and it seems likely that dull conditions will remain till Mr Snowden makes his announcement on April 14. Uncertain Wheat Outlook. The wheat position is a difficult one. There are all sorts of rumours current, on both sides of the Atlantic, about heavy purchases .of Manitoba wheat for shipment to England in the spring, but no one can confirm them. If correct, these sales may be taken as an indication that the Canadian Wheat Pool has changed its policy of holding up wheat. It is suggested that this may presage an “end of the gieatest hold up since Joseph,” as a leading wheat-trader described it in the “Daily Telegraph.” He proceeded: “There is no one conversant with the grain market, who will hazard a opinion regarding the future. The situation is too artificial. It is unique, therefore, and no sort of precedent counts. What end can be predicted to the operation, which has been going on for two years. Some grain stocks to North America have been there since August, 1928; all that time, the carrying charges have been accumulating, and are now estimated at about 12/- per quarter, or 30 per cent, of the present price. Butter Supplies Increase. “The tendency in the butter market is still downward, and there are prospects of a further decline, as imports are much in excess of trade requirements, and the lowering of the retail price has failed to stimulate the consumptive demand. Imports from all European countries have increased, and those from Australia and New Zealand have been considerably heavier than a month ago, while large quantities are advised as leaving Australia and New Zealand in February, and bookings for March indicate that we shall have more than ample supplies for some months. In this state of affairs, buyers are naturally only operating hand to mouth.”

Interest to Textile Trade. The French Ministry of Agriculture announces an invention by Messieurs Bruere of Worms, as likely to prove of enormous benefit to the whole textile trade. It is a colourless dye, which the inventors claim is fatal to moths and their larvae, while it does not damage the cloth. It consists of a metallic salt solution, previously submitted to the action of sodium nitrate.