CLOSE OF BUSINESS YEAR.

Timaru Herald, Volume CXXXIII, Issue 18762, 29 December 1930, Page 9

CLOSE OF BUSINESS YEAR.

Stock Exchange In Cheerful Vein. TRADE PROSPECTS NOT BRIGHT. United Press Association—Bv Electno Tel egraph—Copy right. (Received December 28, 5.5 p.m.) LONDON, December 27. The Stock Exchange closed for the Christmas holidays in a cheerful vein, the markets having received an unexpected fillip in the reduction of the New York rediscount rate to 2 per cent., which is the lowest on record. It is generally believed that the reduction was made with the idea of assisting American conditions and checking the decline in stocks, which recently been seriously affected by bank failures. The reduction had an immediate effect on the Stock Exchange, all British funds advancing sharply, the movement spreading to many other sections. Australian Stocks Weak. Unfortunately the Australian Government did not participate, their tendency being downward. Other Australian securities also show weakness, which is not surprising in view of the decreased profits. An analysis of the balance sheets of eight leading Australian companies, shows that the net profits in 1930 were £1,191,843 compared with £2,053.358 last year, a decrease of almost 42 per cent. Trade Outlook. “The Economist’s” review states that the condition of trade once again makes far from cheerful reading. The reviewer says: “The faint promise of greater stability held out by some October and November. trade statistics has once more ended in disappointment. Wholesale prices, after a period of six or seven weeks of relatively greater stability, began to fall with renewed precipitancy at the end of November, and it seems highly probable that New Year’s Day will coincide with the return of the economic index number to pre-war level.” The unemployment returns lately continued to grow in contradistinction to the normal pre-Christmas tendency, the last available weekly figures show 2,306,962 unemployed. Overseas trade, which in October showed signs of a little improvement, receded again the following month. There too there is no sign that the general trend of the curve has ceased to be downwards. After this dismal foreboding, it is pleasant to read in the “Financial Times” that definitely brighter prospects opens out before the tin industry. The Producers’ announces that 90 per cent, of the world’s output has bound itself to a definite agreement, under which each country’s output wall be restricted to specified percentage. Butter Prices. The butter market had quite a good little spurt of activity during the three business days of this week, and prices firmed by 1/- to 2/- all round. One factor contributing to the improvement was the unfortunate loss of the steamer Oberon, as she was carr g over 3000 cases of Finnish butter. I the absence of this from the north a markets, had a hardening effect. The consumptive demand throughout the country remains good. The Empire Marketing Board's report says that the stored stocks which six months ago amounted to nearly a million boxes has now been reduced to 276.000 which is less by approximately 91,000 than the stocks of a year ago.

Importers are gratified at the success of their propaganda function at the arrival of the Empire butter fleet. It received much publicity in the newspapers and the pictures showed films all over the country for several days. So millions of people must have learned that Australian and New Zealand butter is obtainable here. This should certainly stimulate the demand. Poor Returns for Eggs. The Australian egg season is approaching its close, the last shipments being due about three weeks hence. The season has been a record one, so far as quantity was concerned, but unfortunately it seems likely to furnish another record in respect to low prices. Owing to heavy supplies from all sources, values steadily declined, apart from a short-lived advance. To-day’s prices of 12/- to 14/- may not be obtainable till the last arrivals are cleared, as European production is large owing to the prevalence of mild weather conditions on the Continent and Britain.