N.Z. STOCKS

Waikato Times, Volume 122, Issue 20511, 30 May 1938, Page 5

N.Z. STOCKS

RECOVERY IN LONDON FINANCES IN HEALTHY STATE EFFECT OF 80CIAL BERVIOEB (United Pr*** Assn—Elec. Tel. Copyright) (Received May 30, 11.35 a.m.) LONDON, May 28 While Interest is almost entirely lacking in sound Investment stocks, plenty of money Is available for gambling In gold shares, which Is proceeding at a feverish paoe. The recovery of New Zealand stocks has been a feature of the Dominion’s stocks. The Flnanolal News expresses the opinion that the market over-estimated the effect of the new soolal aervloea on the Budgetary position and undar-astlmated Navy Zealand's ability and willingness to pay. The Investors’ Chronicle, in pointing out that the present sickness of th« market originated from the announcement of medical benefits and pensions says the bondholders doubtlesi sympathised with Mr Savage’s alms but wondered whether the country’s finances could stand the burden without endangering the debt service. The suggestion had been added to these foars that, interest on the external debt may in future be met in New Zealand pounds. The Investors’ Chronicle, however, agrees that New Zealand finances are in a healthy state, and says Investor* can reasonably conclude that the decline in bonds has been overdone. Worst Wee.k for Long Time The commodity markets had the worst week for a long time. Cotton lost 50 points, butter collapsed, metals were friendless, and rubber was idle Sugar and wool alone among the major commodities remained steady. Lower Prices for Butter Holders are nervous over the butter outlook. There is undoubtedly some accumulation of Australian in the hands of importers and re sellers in London, while New Zealand Is piling up in northern ports. Lower prices seem inevitable before the speculators and multiple stores are interested. Trading at present is most difficult, transactions being very small. Cheese is sympathetically weaker, though the statistical position Justifies firmness. Serious Problems The Rubber Committee will meet on May 31 and will decide the quota for the third quarter of the year. The Tin Committee will meet on June 2. Both committees are confronted with serious problems. The Economist states that the demand for coal is also on the down grade. Cotton has relapsed. , There is a serious depression In the volume of sales of goods, including motor-cars, which are declining even on the domestic market because the purchasing power has not kept pace with the rise in prices.