COMMERCIAL SUMMARY

Wanganui Chronicle, Volume 73, Issue 450, 16 December 1930, Page 8

COMMERCIAL SUMMARY

THE STOCK EXCHANGE HEAVY INFLUX OF GOLD. [By Telegraph—Press Association—Copyright.] LONDON, Dec. 13. The Stock Exchange experienced another period of depression, and even the gilt-edged sections, which have hitherto been the one bright spot in the market, felt the effect of the heavy efflux of gold to the Continent, an.l during the last few days British funds have weakened slightly. Australian Government stocks had another setback, and prices, both Commonwealth and States, have been marketed more or less severely. One financial newspaper says that there is no apparent reason for this decline, but brokers closely in touch with this market do not hesitate in attributing it to the uncertainty of the political situation in Australia and the wild talk of irresponsible extremists to which undue importance has been attached by people not thoroughly conversant with Australian affairs. The latest news on the progress of the'conversion loan is regarded as satisfactory, and if the whole amount is subscribed it will have a reassuring effect on the minds of many people who are now inclined to take a pessimistic view of Australia s position. The Wool Position. Discussing the wool position at the close of the auctions, H. Dawson and Sons write: ‘‘The new outlook furnishes some reason for hopefulness. The demand for legitimate and urgent, requirements is now’ dominating the situation. The low prices are reassurring and there is a more confident view of values, especially in crossbreds, following their collapse here and in the overseas markets. In Merinos, despite the temporary weakness for average sorts, arrivals from various centres are being absorbed at a rate seldom, if ever, equalled, and the wool is close to the machines in practically every consuming centre. The cause of any existing nervousness is not inside the wool industry but in external factors, chiefly the financial. The political vagaries of Australian and the South American exchange have had a great effect on values. The financial disturbance ; n the United States and the general restrictions of credit facilities in most centres have been acutely felt, but, despite tht general politic:., unrest and the unremunerative rates for commodities. our raw material, along with wheat, is likely to be the first to emerge from the morass. It is natural that staple products should be the least affected by bad times. The general demand for wool, and the indication ot returning confidence in its value, are welcome signs of healthier conditions. It is also reasonable t expect that financial support may be available from new quarters at the present attractive prices for legitimate consumptive requirements. Advance in Butter Prices. The butter traders have to thank the fog which prevailed last week-end for causing an advance of about 10s per cwt. The ships were delayed in the river, and, when they werp eventually docked, discharge was slow. Consequently there was a decided shortage of butter, as retailers had previously been buying only from Land to mouth and had no stocks to fall back on. Consumption during November was very good, and according to the Empire Marketing Board’s figures the stocks in cold store were reduced during the month by 293,400 boxes. Despite this large reduction there was not much hope of any advance in prices, and most people are doubtful whether the present rates can be maintained, for prospective supplies are very hea\y. The total shipments afloat from Australia. New Zealand, and Argentina amount to 892,000 boxes, which is 250.000 more than was a oat last year. Low Prices of Sugar. The low prices to which sugar has fallen have stimulated most of the producing countries to take action. Java and Cuba have arrived at an agreement to restrict exports, and a conference of world producers is now sitting at Brussels to fix the quotas for the restriction of outputs. Secrecy has been enjoined on members of the conference, but the newspapers state that the con ferenc-e is discussing suggestions to reduce the world’s output for five years and to merge all of the existing stocks into one international stock The latest icport is that difficulty ha„ arisen over the European quota, inc Dutch. Javanese, and American representatives suggest a European limit ot 1,223,000 tons for the coming y eai - The Europeans desire an output o 1,308,000 ions.