SHOWING SIGNS OF ACTIVITY

Timaru Herald, Volume CXXXVIII, Issue 19906, 17 September 1934, Page 7

SHOWING SIGNS OF ACTIVITY

MONEY MARKET IN LONDON PLIGHT OF ENGLISH PRODUCE BUSINESS United Press Association—By Electric Telegraph—Copyright (Received September 16, 6.0 p.m.) LONDON. September 15. With the holiday season drawing to a close, the Stock Exchange is beginning to show more activity and the general tone is quite satisfactory. The gilt-edged market is steady with Dominions stocks in good demand. The new Nigerian Conversion Loan had a good reception. The Argentine conversion of a number of 5 per cent, stocks, amounting to nearly £10,000,000 into per cent, sterling bonds at £93/10/- also was well received. This issue is interesting from the fact that the Argentine’s credit is so good that the Government has been able to dispense with the Underwriting of a large proportion of the issue, only about £4.500,000 being underwritten.

Egg Season Opens. The Australian egg season opened under somewhat inauspicious conditions. Britain is having an unusually prolonged summer with the temperatures as high as in mid-June. Similar conditions prevail on the Continent, with the result that the egg production has maintained a very high rate. Consequently the market has been flooded with Home and Continental eggs. Some weak holders of the latter are selling at almost give away prices, and thus 171 b of Danish eggs have been sold as low as 10/6 per 120. The same weight of Lithuanian eggs realised 8/-. In these conditions the price realised for Australian eggs, 161 b for 11/6 must be regarded as satisfactory. Butter Trade Uncertain. The butter trade is still in the doldrums but there are some signs that a slight improvement will possibly come before long. The stocks in cold store, though still very heavy, are beginning to decline and the total afloat from Australia, New Zealand and the Argentine is also falling off. There are prospects of an increase in the German quota of imports for the remainder of the year, and this should mean smaller arrivals of Danish here. It is reported that South Africa is threatened with a butter famine, as a result of last year’s drought. This may mean that some butter will be shipped there from England, so that Australian producers might well consider sending shipments to South Africa.