A BRIGHTER TONE

Wanganui Chronicle, Volume 74, Issue 139, 15 June 1931, Page 7

A BRIGHTER TONE

COMMERCIAL SUMMARY BRITISH MARKETS IMPROVE POLITICAL CHANGE SOON? MORE FAITH IN AUSTRALIA 1W Tc:..«ph-Pres. A- ,H=-Cowri»M.J Received Juno ■ 5.5 p.mLC June 13. The Stock Exchange has assumed a decidedly brighter t ne, although the German news is disquieting. Most markets have showed firmness. According to some newspapers, one of the chief influences operating is > he growing hope that the MacDonald Government will be defeated next week and an immediate dissolution will follow. On this assumption there has been a considerable amount of bear covering, especially in home rails, which sent prices up all round. Giltedgeds, of course, participated in the upward movement. A most satisfactory feature was the further improvement in Australian stocks, which have been consistently moving higher from the moment it became known that the conversion loan was to be on a voluntary basis. On this subject the Economist writes: “There is no doubt that from the standpoint of Australia’s credit, the decision is wise. So too is the determination to press forward with the other economies, for in addition to the direct substantial contribution they will make to the rehabilitation of the national finances, they will remove any fear of the bond holde. being singled out for special treatment. The news tha the Opposition is now co-operating is also encouraging, for it holds out the hope that Australia is now on the threshold of a united national eff >rt. Once assured of this, the city will be eager to render Australia all possible assistance. 11 An indication of the improvement in financial conditions may be found in the renewal of activity in new capita] issues this week in addition to the New Zealand £5,000,000 loan, an issue of £3,000,000 of debentures for the Great Southern railway has been arranged, and an issue of about £5,000,000 by Woolworths. Apple prices have been fairly well maintained till now, but are becoming rather eaiser. Importers will not be surprised if they decline somewhat dur ing the remaining month of the season when shipments come into competition with the European soft fruit. The Butter Market. Although butter prices have given way slightly, the consumptive demand remains good, and nt the present retail price of 14d a lb. there is not much likelihood of any falling off. The recommendations of the committee regarding the marking of blended butter have aroused considerable interest among importers, but no one seems to have a decided opinion as to what effect the recommendations, ,f adopted, will have, it is generally thought that they may cause an elimination of foreign butters from blends. This would cause an increased demand for Australian and New Zealand. The agitation in the newspapers against Siberian butter continues, al though imports thereof are unimportant, last month’s only amounting to 30,584 cwt. out of a total of 723,165 cwt. In the face of this outcry a number of leading multiple stores are 11vertising that they do not supply .Russian, and one of the largest blending firms in the country announce in the trade newspapers, “We do not buy, or sell,- or handle any Russian butter.”