BRITISH TRADE

Hokitika Guardian, 27 August 1930, Page 2

BRITISH TRADE

FORTNIGHTLY REVIEW

WIDESPREAD INTEREST IN AUSTRALIAN POSITION.

(.United Press Association—By Electric Telegraph.—Copyright.)

LONDON, Aug. 23,

Not for years have. Australian financial affairs, received so mhcli attention nr the British Press as during tbe past week. First came a series of differing forecasts of the Melbourne coherence’s decisions from various correspondents. Financial circles were relieved by. the decision, which was immediately published with the full official report, of which adequate summaries appeared in the entire Press. The City, generally, having taken time to digest the report, has favourably received the decisions as evidence of a nation-wide common policy. The appointment of a committee of representatives of the States, as well as the Commonwealth, to carry out the decisions is welcomed as proof that the problems are going to be tackled earnestly aljd effectively, ; leading to ft 'graiiuat ] ;movdmefiT S towards, ; eqUiii’briutfh ih tlie nieattti'me- dbspite some wild alarmist Press cables from Aus* irallar Responsible l quarters have never doubted I That the Recently consummated exchange pool ensure? absolutely due provision for debt services. Sir Otto Niemeyer’s approval of the Melbourne resolutions bas naturally given added value to this, and the leading authorities are convinced that if the people will only accept the inevitable sacrifices entailed by the necessity for reducing; the costs' of production there will be surer confidence here in the Australian situation than there has been . for some time past.

ON THE STOCK EXCHANGE

Further liquidation of industrial shares and t]ie steady investment demand for gilt-edgeds have been features ;,(jf /the 'gtock Exchange during the pakt week. ! The firmness of giltedgeds. is not surprising. It is, corollary ”'of bad trade. Cheap ...money- has been fostered • by the holiday. • rest in the new iss-ile'market- and the shortage of floating-stock. This is practically the peak of the holiday season, a circumstance which lias been plainly reflected in thf restricted character of the dealings. ■ Australian stocks have sjiqredjwith’dtlicr gilt-edgeds a steady improvement'during the week, and the publication Of the Melbourne conference resolutions was only an additional contributing factor to the' movement which had already begun in favour of trustee securities owing chiefly to the depression in industrials. ;

ADVICE TO INVESTORS. '

Tlie "Financial News” in Its advice to the investors, who* regard the present as on opportune moment to weigh up the chances of the earliest improvement in trade, points out that recovery will first come from the countries providing primary materials. It will be speediest in the countries not embarrassed by political unrest, or involved in national depression. In the list of countries, which it suggests as likely ultimately to offer a field for profitable investment,- the writer recommends them in the following order: Argentine, Canada, South Africa, Chile, New Zealand. Brazil. France, Sweden, United States, Denmark, Italy. Germany. The writer significantly excludes Australia entirely. WOOL.

Bradford regards as opportune the publication this week of Dalgety’s estimate of wool production in Australia- and New Zealand for the season 1929-30, a.s it will provide data for making calculations for the current season'. • The position is that 3,582,000 bales of Australian and New Zealand wool were absorbed in 1929-30, an increase of 21,213 over the previous year. ■

The' “Economist” says that an alarming fact in the figures is that the average price realised for Australian'wool last season was 10Jd and New Zealand ,8-Jd. It has been, frequently said that 12d to led should be the minimum to enable Australian growers to cover the costs and a shilling similarly for New Zealand. Hie “Economist” adds: "It is overmuch to expect that values will recover ns much as this, for. while it is true that no more wool is being prodiioed than the world’s manufacturing machinery can absorb, it is equally true that there will be a big expansion of the consumptive requirements, which will set all the machinery going full time, and therebv get ahead of supplies and lift values.”