WILL RECOVER

Gisborne Times, Volume LXX, Issue 11124, 6 February 1930, Page 5

WILL RECOVER

CONFIDENCE IN /DOMINION

CHRISTCHURCH SHAREBROKER’S VIEWS.

While agreeing that the outlook was not bright, the chairman of the Christchurch Stock Exchange (Air F E. Graham), speaking at tlio annual meeting. expressed conlidonce in New Zealand’s . ability, to recover. , “Tho markets -were, very brisk during the major portion of the year, and prices were well maintained, although perhaps on the , high side with a low interest return on the hank and other gilt-edged stocks. In October a- peculiar .combination of circumstances of which the main items were .the fall in wool prices, industrial unrest in Australia, the rise in tlio bank rate in X<otulon, and financial crashes in England and America, caused a. serious fall in share values'and unfortunately this fall has continued over since and* vs still very much in evidence to-day.. “The wool market is also still tailing. and as we are so dependent on our primary products in Australia and New Zealand, T 1 do not think we have quite seen the end of the fall in' share values yet. .However, whilst 'there is is not much cause at the moment for optimism, on the other, hand I do not see any reason for undue pessimism, as I have great confidence in the recuperative powers of Australia and New Zealand, and alt ho mil i it may take some little while to come about, that these two countries will recover I have not the slightest ’ doubt. ■ “We have had periods oi financial depression before and recovered from them, and if we could see industrial peace in Australia, and satsfactorv loan arrangements there, increased production and economy ot imports, if carried out, would soon have their effect. In the meantime the investor who is not forced to sell, is only losing capital on' paper, which will return when the conditions alter, and there are and will ,be -many oppoitunities for tlio investor who is fortunate enough to have capital at his command to buy very sound stocks at a most remunerative return for liis investment. Curing the pei-od when interest returns were low, some investors were seeking bettei returns outside New Zealand, hut the action taken by our Prune Alinister in raising tho interest rate to 5.J per cent, has had ihe effect of not only stopping, money from going out of the Dominion, but is attracting money to its. Raising money by*, internal: loan s • iej good up to a point, but I am sure that our. Goveriinieiit has done good in tins instance although perhaps local bodies might not subscribe to this view. “U -s a very difficult postion that that the sharebroker finds himself ill to-dav when asked to give h:s advice. I think the attitude that sharebrokers should adopt at the present time is to point out to investors the position as they see it, and to leave the final decision to their clients.