BRITISH MARKETS

Wanganui Chronicle, Volume 79, Issue 29, 4 February 1935, Page 7

BRITISH MARKETS

UNDERLYING SOUNDNESS SHOCKS WELL [Bj Telegraph—Press Association—Copyright! Ret ived, Feb. 3, 6.30 p.m. LONDON, Feb. 2. The block Exchange passed through a most uneasy week in a manner which affords a splendid illustration of the underlying soundness of the markets The principal cause of anxiety was the disturbance in Baltic exchange and in the commodity markets, the first resulting from the failure of the Strauss Company, with amounting to nearly £1.900,00. The news of this disaster naturally had a depressing effect, but it was soon ascertained that the losses had fallen principally on the big banks and companies which were able to bear them. Following this came news of difficulties in the markets of two such widely diverse commodities as shellac and pepper. Meetings of bankers and others interested in these affairs are being held, and it is generally expeetd that matters will be arranged without untoward results. Th. last disturbing element was a slump in the Yellowdine group of mines in West Australia following a disappointing cable which damped the ardour of speculative operators in more than one market, but after two days’ excitement, with considerable panic-selling, the market grew calmer, and yesterday there was general steadiness in West Australians. Nationalisation Campaign. Speeches by the chairman at meetings of the “Big Five” banks have, as usual, been read with much interest, particularly the remarks made in respect of the nationalisation, campaign. Commenting editorially thereon, the Times says: “There can hardly be a competent critic familiar with the history of central banking, who would regard nationalisation, as understood by the Labour Party, as anything short of a calamity. The subordination of the monetary policy to the exigencies of party politics would inevitably lead to immediate disaster, and who could guarantee that the protagonists of Socialism, once in power, would be immune from such temptation. Nor would tho nationalisation of the joint stock banks prove any less damaging to the interests of the nation, for what motive can lie behind this clamour for nationalisation except a desire to effect violent changes \jn the manner in which these institutions conduct business—changes which would definitely be directed to the political ends.” Rising Butter Prices. The butter trade continues to improve, and prices have steadily hardened until to-day choicest salted New Zealand is fetching 92s per cwt., and Australian 90s, which is 15s higher than the beginning of January, and 20s higher than the beginning of December. Several causes have contributed to this satisfactory state of affairs. The first is the continuance of the strong consumptive demand, which has resulted in the reduction of cold-stored stocks to about 400,000 boxes, or roughly about one week’s consumption. Another bull factor in the market is that New Zealand is shipping considerable quantities to the United States, which has also been buying here, and then there is news of a severe drought in New Zealand, with a consequent heavy reduction in butter production. Importers, the/tfore, are taking a very firm attitude.

The higher values will Clause retailers to advance prices by Id or 2d per lb., but it is not expected that this will mean any serious reduction in consumption. The egg market is still depressed. A brief cold snap gave hope of some improvement, but the springlike weather quickly returned, and prices remain at the recent low level, Australians ranging from 7s 3d to 9s, according to weight.