INVESTORS CAREFUL

Sun (Auckland), Volume III, Issue 800, 22 October 1929, Page 10

INVESTORS CAREFUL

MONEY MARKET HARDENS IN AUSTRALIA BIG LOAN BILL TO MEET “The money market lias hardened In Australia. Investors are beiug careful until they see what action the new Labour Government will take.” Mr. U. F. McCabe, the Wellington stock and sharebroker, made the above remarks on the Marama this morning on his return from a holiday in Australia. He predicts that Australia will go through a depressing period, as far as business is concerned, for the next few years. The unsettled state of the coal and timber industries were still having their effect on investors. It was estimated that the revenue from wool alone would be 30 per cent, lower this year than last. This, coming on top of loan renewals amounting to about £60,000,000, which fall due in the next T2 months, will seriously affect the Commonwealth.

Just before the elections gilt-edged stock depreciated to the extent of 10 per cent, in some instances. There was plenty of money in the banks, hut nobody was taking any chances. Despite the prevailing pessimism in some quarters Mr. McCabe says that building is going ahead as usual and sky-scrapers are appearing in all directions. The harbour bridge is making good progress though not so good as it might because of tile interference from petty strikes. Race meetings were still attended by large crowds. Mr. McCabe said that he saw between £150,000 and £200,000 in notes change hands at one of the big betting clubs after one meeting. This indicated the optimism of Australia generally—the average individual was always prepared to live for the moment.