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Evening Star, Issue 20052, 18 December 1928, Page 8

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STOCK EXCHANGE STAGNANT GOOD DEMAND FOR BUTTER WOOL POSITION DISCUSSED. GERMANY BUYING NEW ZEALAND FRUIT. • Press Association—By Telegraph-Copyright. LONDON, December 15. Stagnation has reigned on the Stock Exchange since tho beginning of the month. Tho anxiety about the King’s health lias been one,of the chief causes, while the approach o’ the Christmas holidays, and tho slum]) on Wall Street also contributed to make things quiet; but while business lias been restricted gilt-edged stocks have remained steady, which is a matter o! congratulation, as there has been such a considerable deilex of gold from the Rank of England that there is tali; of a possible increase, in the bank rate—not this year, but early in U 129, when it may be difficult to keep tho rate at the present level. In a long article headed ‘The New Position of Australian Loans,’ tho ‘ Economist ‘ discusses th,e effects of tho Federal Government taking over tho Stale!* debts. After expressing approval of the financial reforms carried out under Mr Brncc—( ipecially in furnishing information in prospectuses and tho provision for sinking funds—tho writer proceeds to say; “The allimportant question remains, is Australia over-borrowing? ” Ho points out that G" per cent, of the net Australian debt has been raised for purposes directly or indirectly productive, and arrives at the conclusion that the tost of the soundness of Australian borrowing is whether the money is being spent productively qnrl economically. The writer concludes: “The London market will fake a more cheerful view of Australian securities when it is assured that, reckless borrowing has given place to wise and carefully supervised borrowing. There are signs of restricted spending on the part of both he Governments and individuals, while an exceptionally good ’rainfall in October lias changed (lie seasonal outlook for primary production, Now is Urn lime, we suggest., for the Oommoinvealtli and the States to budget for surpluses, not deficits, and apply those surpluses to accelerate the repayment of debts.” RUTTER. The butter market, has shown great strength this week. Prices for all descriptions have, advanced, and the rise is a, genuine one, brought about, by a real shortage. For some time |iasb the retailers have been working on very small stocks, and they appear suddenly to have awakened to I,bo fact that tho prospective supplies arc much smaller than they thought. There is also a great shortage on the Continent., and considerable quantities of colonial butter aro being bought, on this market by Germany, Belgium, .Holland, Franco, Italy, and Switzerland, ’this demand appears likely to continue, and tho prospects for the next month or so appear decidedly favourable, the year finishing with the whole trade feeling fairly comfortable. WOOL VALUES. .Regarding the standard of wool values, the ‘ Statist's ’ Bradford correspondent says: “ There is far more faith to-day in current values than there was last March, when prices were distinctly higher and when a good deal of forcing tactics was being employed. To-day this feature is entirely absent, but all sections of the industry aro satisfied that current values are high enough to bo safe. Higher values will do more harm than good. It looks as'if wo are going to see steady values, with consumption maintained, and tending to improve.” THE FRUIT SEASON. In the animal, review of the .Australian and New Zealand fruit seasou, F. W. Moore and Co. call attention to the fact that New Zealand, since June, has enjoyed the advantage of a favoured nation treaty with the German Government. Several other nations have similar arrangements, whereby they bate to pay only seven reichmarks import, duty (roughly 7s per 100 kilograms) instead of fifteen, which is charged on Australian fruit. Tin's, of course, only applies to fruit bought for consumption in Germany, bill, Germany, with a population of GO.dOG.UGU, has a large, number of potential buyers who hesitate to compete for apples on which tho duty is roughly 2s Ski per case, and concentrate their attention on apples which, tinder the favoured nation treaty, pay about Sd per case lower duty. Commenting on this position, Moore and Co. write: " The Australian fruitgrower needs to stir up the Commonwealth Government to follow New Zealand’s example. 'The Ministry ot ■Markets in Australia should attend to this without delay.”—Australian Press ■ Association.