WELLINGTON NEWS

Hokitika Guardian, 18 November 1931, Page 7

WELLINGTON NEWS

MARKET HEADLINES

(Special Correspondent).

WELLINGTON, November 16.

The headlines on a' page of a newspaper often afford much mental pabulum, and, if well digested, are very useful. 'On Thursday of last week the reports of stock sales in various parts of the Dominion are extremely interesting. At the Burnside (Dunedin) sale the report stated that there was another noticeable drop in prices for all classes of fat stock. Despite the fact that outside buyers there was a weak demand for fat cattle and prices declined by 25s per head. Sheep prices showed a decline of Is per head. There was a good demand for lambs, but prices declined to 3s per head. At Johnsonville ’(Wellington) there was again a marked easing in prices : Cattle were 10s to 15s per head lower, fat' sheep were Is to 2s per head lower, and lambs were dull of sale and showed a decline of from 2s to 3s per head. At Westfield (Auckland) prices dropped by nearly 20 per cent. in the beef and mutton classes. The yarding was exceptionally heavy, and bidding was sluggish, The same dismal story was forthcoming from YVaipukurau, Fordell and Saw era,

On the same page there was published cabled reports of the London dairy produce market. The butter market was reported as depressed and declining, and the price for New Zealand butter, finest was quoted at 114 s, this being 4s per cwt. below the price ruling towards the end of July, 1914. The cheese market was reported dull. In Chicago and London wheat prices were reported easier, and so the commodity markets appear to be quite unstable and uncertain. If we turn, to the share market we get quite a different picture. The Wellington share market was buoyant, the demand for shares at the recent advanced prices was well maintained, and buyers were as thick as leaves in autumn.

Apparently there is no connection between the share market and the commodity markets. Investors in Stock Exchange securities mostly look for capital appreciation, very few buy shares to hold for income purposes. The majority of investors indulge in Stock Exchange gamble, and the slightest bit of goodness seqds shares soaring. The British election, with the return of the (National iGovernment with a: huge majority, had an electric effect on investors, who rushed to buy shares in anticipation of a big rise, and in rushing they pushed up the prices against themselves.

Another factor that engendered optimism was the sensational rise in the price Of wheat, alid the hardening Of the wool market was another favourable factor.' The next day, however, the share market began to recede, and the recession is likely to be accelerated by the storm that is gathering in Germany, Britain ha t s entered the fringe of that ,storm area, and more will be heard of that matter. The election in New Zealand will call a halt in Stock Exchange investments. No one can say what the result will be.

A week 'ago. the outlook for the Coalition Government was promising, but now with so many unwanted candidates in the field the outlook is very uncertain. The only bright spot visible just now is wool. Wool has been steadily advancing and the outlook is extremely promising. The world is reverting to wool for clothing, having found all substitutes more or less worthless. Jhe improvement in wool and the slightly better prices for wheat make Australia s chances for recovery very bright, and it seems that the Commonwealth will be on its feet long the Dominion, even if the Socialist Party do hot win the election. If that party does win then our recovery will take a very long time coming. \