Economic Outlook
p. 160 · Read in the full issue
After the October-November shs market tumble, prices late last mot made a short-lived recovery, then s downwards again. By December 8, ho ever, the market had steadied, with] ordinaries index of 280.52—a 20 per ce: drop below the peak of last Septemb Most market observers consider 1 worst is now over.
The up-down graph, of course, reflecj the market’s before-and-after reaction Federal Treasurer Holt’s stiff econo* measures announced on November 16 curb inflation and stop the rundown Australia’s overseas reserves.
Main points of the Government’s n “supplementary Budget” were: • Tighter credit, particularly for i ports and land and “spec.” building,] • Higher sales tax on motor vehia —up 10 per cent, (to 40 per cent.).] • Increased bank interest rates. • Disallowance of interest as a deduction on certain company borrowin • Restriction on superannuation fu and insurance investments (nearly a th must now be in Govt, securities).
The proposals raised Cain from i Labour Opposition and certain sections] industry—notably, HP firms and manufacturers. Indeed, the car sales 1 caused an initial Senate defeat for Government, but went through when introduced the following day.
Generally. financial commentati agreed that the checks were necessa though late.
Sydney Sales Prices
Nov. 8. ’60
Dec]
Bali Plantations . . 15/6 13/1 Burns Philp ... 85/- 88/1 Burns Philp (SS) . . 62/6 60/
C.S.R
£74/7/6 £ 70/1 Dylup Plantations 12/- 11/1 Fiji Industries . . . 12/9 13/3 Hackshall’s ... 15/3 14/3 Kauri Timber . . . 21/- 19/9 Kerema Rubber . . . 8/- 10/3 Koltaki 17/3 18/] Lolorua 10/- 10/ 9/1 Mariboi 9/8 Norfolk Is. Whaling . 5/6 4/| Ditto Notes (5/-) .. 6/1 Pacific Is. Timbers . 6/3 6/| Plantation Holdings . 6/7 5/1 Queensland Insurance 92/6 90/4 Rubberlands ... 5/9 5/8 Sthn. Pac. Insurance 21/-
bl8/l
Steamships Trading . 49/- 48/] W. R. Carpenter Hold. 25/3 25/1 Timor Oil 4/6 4/1
Oil And Mining Shares
Fiji
July 9. ’58 Nov. 8. ’60
Dec!
Emperor . . b5/9 b4/s5/*l Loloma ... — b43/6 b40/j
Papua-New
Guinea
Bulolo . . . b35/b45/b49/6I N.G.G. Ltd. bl/9% b2/4 bl/6 1 Oil Search . b2/6 b6/2 b2V 2 dl Ent. of N.O. b7d b2d b5/3 fl Pac. I. Mines — bll2/6 bllO/l Papuan Apin. b9d b3/l b2/6 I do. opt. , bBVfed b6d b4V 2 d| Placer Dev. b86/6 bll5/b120/4 Sandy Creek b4d bl>/ 2 blVadl