TRADE REVIEW

Ashburton Guardian, Volume 50, Issue 196, 2 June 1930, Page 5

TRADE REVIEW

THE WOOL OUTLOOK. RENEWAL OF CONFIDENCE. REQUIREMENTS FOR CONTINENT (United Press Association—Copyright.) (Received This Day, 8,5 a.rn.) LONDON, May 81. Tlie Stock Exchange is passing through a very dull period There is a complete absence of speculation, and the week just closed has been one ox the quietest experienced for many months so far as industrial shares are concerned.. The only activity has been in gilt-edgeds, which have experienced an increase in business, thanks to the cheap money and the expectations that the Bank rate will be lowered in the early future. Many people hoped tlie rate would be lowered to 2} per cent, last Thursday, but they were disappointed. It is, however, legaided us almost certain that a reduction will come in a week or two. “The world as a whole is passing through the throes of a major trade depression,” says “'J he Economist, in its monthly review of the state o» trade, and the reports of other authorities make equally dismal reading. Lloyds Bank’s Monthly, for instance, dealing with Home trade, says: ‘ Conditions remain generally very disappointing. and unemployment has again increased. The prices of commodities have a-min fallen during the last month, and until traders have some certainty that the fall lias reached its end they are not likely to extend their commitments.” The only bright spot appears to be the wool market. All the brokers reports of the wool sales, which closed yesterday, are couched in optimistic vein, and express the view that confidence has been restored. Thus Charles Balme and Company write: bjorn the acfiive, widespread, competition, it would appear that the trade has confidence in the future, and it seems reasonable to hope that we shall not see any set-back in values during, the next few months.” H. Dawson and Sons write- “The outstanding feature is that practically all medium combing merino wools are meeting the keenest competition.. Continental buyers, particularly German and Aisatmn spinners are evidently needing these foi immediate requirements, and have been prepared to pay a very solid advance; but Yorkshire has not been able to join the issue to any extent at the new level which has been established.” It is apparent that the pessimism of the early months of the year has given place to a new confidence. Moreover, it is evident that the bo-ey of heavy surplus supplies at the primary sources, which contributed so much to the nervousness m the last season, has been thoroughly laid Ihe salient factors to be considered may be summed up as follow: Raw ferial is still at a relative y low basis, and merino wools are finding new outlets The stocks in consumers’ hands are' generally below normal, and the policy of restricted operations when our market was falling can now be revised, and with the incentive of cheap money may now encourage the replenishing of stocks Anyhow, the e is such renewed confidence in the situ ation that one may be justified in looking forward to improved prospects in the industry, although the change as been- so remarkable and so rapid that it is still viewed with some nervousness, especially in Yorkshire. An important step toward contiol of the tin output lias been taken by the Tin Producers’ Association in the appointment of a special committee to deal with tlie regulation of output throughout the world. The commit comprises members representing Dutc East Indies, Malava, Bolivia and mcevia. The significant feature of its composition is the presence of Dutch interests, which hitherto have not cooperated with the Tin Producers Association. The four sections represented include tlie bulk of the wpi Id s tin producers’ outside the Chineseowned mines in Malaya. At the i . meeting of tlie committee it vvas ci nonneed that a complete agreement had been reached on all points.