AUSTRALIA'S AFFAIRS

Evening Post, Volume CX, Issue 72, 22 September 1930, Page 12

AUSTRALIA'S AFFAIRS

HOPEFUL LONDON VIEWS .EFFECTS OF EXTREMIST TALK (Received 22nd September, 0.30 a.m.) : LONDON, 20th September. ..Australia's' financial position continues to receive much, attention from the newspapers and from, financial and economic •writers.generally. While recognising the seriousness of the present situation, they appear to take a somewhat more hopeful view of "the.future than they have been taking. Thus a financial writer in. the .■Spectator,", after pointing out that fact and dealing with the causes of the financial depression in this country an* in Australia, • remarks- that they are very similar. ■■ He ■ writes that the . only hope for Australia and Great Britain is for both to face the situation manfully. ■The level to which Australian Government" stocks have fallen is causing some anxiety, but as far as can be ascertained there is no disposition on the part of large holders to part with their stocks at the present prices. The only sellers appear to-be small holder* who, as mentioned a'fortiiight ago,' have taken alarm at some of ~the extremist talk in Australia. ■Thel present certainly seems to offer a good opportunity for investment in Australian: stocks, for all of them show excellent yield. Thus Queensland 5 per cents; (1940-60) at their present price ot 84%; give a yield, allowing for redemption/of 6,15 per cent.; New South. Wales S^per.eente. (1935-55) give a similar yield, 5.37 per cent: 5 per cent. Commonwealth, South Australia, and West Australian 5 feel- cents.' yield 5.9 per cent. . 'Tjie' Stock Exchange, generally , has ■ reJa'psed' into.' a condition of lifelessness, which- .is -very disappointing, • after the briskness wlvicb. characterised the begmai'ng of.the month. Business is on the (smallest scale, the investing public showing nY interest in .the market and professional buyers are marking time. Gilt *d«ed:. securities have been fairly steady, •frith tb* exception of' Australian gecunses" Tint -foreign bonds have been weak, Germans leading the decline as a natural ijequence of: the election results. Industrials have been, quieter than for some ■*eeka; past. : Mines generally are lower in Sfcrices., ■;...'...