OPTIMISTIC NOTE

Ashburton Guardian, Volume 51, Issue 294, 25 September 1931, Page 5

OPTIMISTIC NOTE

BRITISH COTTON INDUSTRY.

FIRMS BUSY BOOKING ORDERS.

MANY MILLS MAY BE REOPENED .FRESH IMPETUS IN BUSINESS. (United Press Association— Copyright) (Received This Day, 11.45 a.m.) LONDON, September 24. On the London stock markets this morning fair business was passing in the foreign exchange market, although rates are still nominal. Commodities continued to rise. Rubber was 3/16ths ot a penny higher at 3 l-10]th pence changed monetary conditions have created an optimistic spirit in Lancashire industrial towns, and the cotton industry appears to have received a fresh impetus. At Liverpool and Manchester, more business was done in a single day than for a considerable time. Both spinners and manufacturers were busy booking orders, and it is confidently predicted that many spinning mills and weaving sheds which have been closed for many months will shortly be reopened.—British Official. Wireless.

The active conditions which marked the reopening of the Stock Exchange yesterday were fully maintained today. Industrial oil and mmmg shares ail improved, while gilt-edged securities showed 'a decline. The sterling weakened,'and there was no change in the bank rate. To-day metal prices recovered further from the low recoid figures- of last week. The general tone is confident, but there is no disposition to overlook the possibilities of reaction.—British Official "Wireless.

RECORD FOR FORTY- YEARS.

SALES OF COTTON AT LIVERPOOL

(Received This Day, 1.5 P- m -) , LONDON, September 24. To-day's sales of cotton at Liverpool totalled 45,000 bales, a record for 40 ■years • The Lancashire Cotton Corporation has decided to re-open four large mills, employing 1500 people, owing to orders' received: during the last tew a The steel works at Barrow, which employ 1400, will be re-opened on Monday.

BANK HATE AND INDUSTRY.

THE QUESTION OF REDUCTION

(Received This Day, 11.40 a.m.) . ' LONDON, September 24. , In the House of Lords, Viscount Morley inquired whether the Government was taking steps to bring about a reduction in the bank rate in the interests of industry, for the reason that the high bank rate was invalidated by going off the gold standard bv £140,000,000 since 1920, a big proportion being kept there instead ot being used for industry. • Baron Melehett said that a high bank rate did not check industry as much as was supposed, but had a steadying effect on speculators. Viscount Peel (Lord Privy Seal), replying, said there was no Government authority over the bank rate, which was entirely a matter within the Bank dfl England's authority. The recent raising had been most valuable to the world as indicating a firm determination to have nothing to do with inflation.

TARIFF ON IMPORTS.

COMMERCIAL MEN'S DEMAND. (Received This Day, 10.$ a.m.) LONDON, September 24. At a meeting at Lincoln, over which Sir William Clare Lees presided; the Associated Chambers of Commerce resolved to telegraph to Mr Stanley Baldwin and Sir Herbert Samuel urging the imposition, without delay, ot a tariff on imports. It was stated that people wanted to .trade with us, but our goods were too dear. We muse buy from those who bought from us.

STILL PRINCIPAL CREDITOR.

THE POSITION OF BRITAIN. (Received This Day, 11.50 a.m.) LONDON, September 24. Sir Arthur Salter, until recently economic adviser on the 'League of Nations secretariat, and now a member, of the British delegation to Geneva, referred to the world financial situation in the Second Committee of the Assembly. > . Dealing with the situation in Jintain, Sir Arthur Salter insisted that events of the last few days did not mean that his country had ceased to be what she had been throughout modern history—the principal creditor country. Her ultimate resources were greater thafcii her liabilities rhe "freezing" of short-term credits in Germany, and later loss of confidence had resulted in large withdrawals of short-term foreign credits m England and large sales of foreign credits in England, also large sales of foreignheld. British securities. British investments abroad were not so liquid and had not been similarly realised by sales They remained, therefore, to the value of thousands of millions sterling as against hundreds of millions of short-term credits. The consequence was that the pound was now where it had been in 1925. British Official Wireless.

DEFENCE AGAINST INFLATION.

SIR JOHN SIMON'S VIEWS

(Received This Day. 11.50 a.m.) LONDON, Sept. 24. On the second reading of the Finance Bill, Sir John Simon (Liberal) said that the chief defence against uncontrolled inflation was a Budget bai-

anced bv everv means available.. If the State by rigid retrenchment and by unpleasant taxation was able to meet current expenditure without recourse to borrowing, it was safe from misuse of the printing press for the purposes of inflation. Only by methods such as those proposed could the stability of the British financial system be preserved. With the enormous world forces changing hour by hour, there was clear need to proceed more swiftly than bv> ordinary Parliamentary procedure." He hoped that Mr Snowden in particular would rise to the height of his opportunity. The House interpreted the closing phase of Sir John Simon's speech as an invitation to the Government to undertake a tariff policy. _ From the Liberal benches Mr G. i±. Shakespeare (Norwich) said that an ernergencv tariff would be tolerated, and that* the nation would consent-to even greater sacrifices if a strong Government called for them. The Labour Opposition criticised the taxation proposal, on the ground that the burdens were unequally distributed to the disadvantage of the working classes.—British Official Wireless.

LONDON STOCK EXCHANGE.

ACTIVITY IN INDUSTRIALS. (Received This Day, 9.45 a.m.) LONDON, September 24. A further decline of the dollar exchange to 3.95, coupled with an increase in buying orders caused tne Stock Exchange to open with considerable activity in industrials, many showing advances, notably oils, also goldmines and rubbers, following an advance in the commodity market. British funds were slightly easier. Gold is nominally quoted at 103 s sd.

FOREIGN EXCHANGE DEALINGS.

NOr LARGE NUMBER BY BRITISH

(Received This Day, 11.50 a.m.) LONDON, September 24. In reply to a question in the House of Commons, the Chancellor of the Exchequer (Mr Snowden) stated that although it was impossible to give exact figures of foreign exchange transactions by British nationals in the Jast three weeks, exhaustive inquiries showed that among thousands of transactions no substantial number were British—British Official Wireless.

WORLD-WIDE DEPRESSION.-

DECLINE IN! OVERSEAS TRADE

(Received This Day, 11.50 a.m.) LONDON, September 24. Significant figures regarding the world-wide nature of the trade slump are given in the Board of Trade's jourIn the first six months of this year a group of 16 of the most important countries showed a decline of 27.8 percent, in imports and of 29./ per cent. J ? For the United Kingdom the decline was-22.4 per cent in imports and 6i.t per cent, in exports. . . r The United States showed a decline of 25 per cent in imports and 36.7'per cent in exports.—British Official Wireless.

RELATION TO TARIFF ISSUE.

THE BUDGET AND TRADE. LONDON, September 23. During the debate on the second reading of the Finance Bill, Sir John Simon said that the departure from the <*old standard meant that the need for a balanced Budget was more urgent than ever. Many argued that such a departure automatically disposed oi the problem of an adverse trade- balance. Temporarily it would block imports, only indiscnminatingly, whether food, raw materials, or luxuries. The depreciation of the pound had no relation, to Imperial preference. Lord Hugh Cecil said that though a revenue tariff might be harmless, a tariff that was definitely intended to restrict imports would be disastrous, as it would destroy a large part of the country's wealth, which came from abroad. It would suffocate the country's foreign trade. "To balance our trade," he said, "we must increase our exports, and this is only possible by reducing the costs of production. The political correspondent of "The Times" states that the Conservatives are at present the only united party. Mr Stanley Baldwin, Sir Austen Chamberlain, Sir Samuel Hoare, and Sir Philip Cunliffe-Lister are entirely agreed that the suspension of the gold standard has not removed the urgency for an emergency election, which is the only method of satisfactorily introducing a tariff.—" Times" Cable.

RETURNING FROM RIVIERA.

FOUR THOUSAND ALREADY LEFT

(Received This Day, 1.5 p.m.) NICE, September 24i Mr Snowden's broadcast appeal to British nationals abroad, made on Monday, roused a great many at present in France. It is estimated that already 4000 British people have leit the Riviera for England. The trains to-day were so crowded that many had to stand in the corridors.

ADVICE TO INVESTORS. LONDON. September 24. The investing public is being urged that now is the time to sell out United States and French securities and replace them with British.

INDIAN BANKS CLOSED./

NO CAUSE FOR PANIC. CALCUTTA, September 24. The banks throughout India again remained closed to-day. They are expected to re-open to-morrow. The Government of India has issued a statement that no anxiety should be felt about .the internal financial situation. It declares that there is ample monev to meet all demands, and that

there is no cause whatever for panic. A declaration from London that the rupee remained linked with, the pound had a reassuring effect. Sir 'George Schuster (finance member of the Viceroy's Executive Council) declared in the Assembly that the Government would stand behind the banks in the event of a run to-mor-row.

AFRICAN DRAFTS ON BRITAIN.

AT PREMIUM FOR SHORT PERIOD

(Received This Day, 10.5 a.m.) CAPE TOWN, September 24. Drafts on England enjoyed a 10 per cent premium for a couple of hours yesterday. This, however, was cancelled during the activity of speculators. Business to-day was transacted at par. DISCOUNTED CANADIAN DOLLAR EFFECT ON OLYMPIC GAMES. (Received This Day, 11.55 a.m.) TORONTO, September 24. As a result of the discounting of the Canadian dollar in the United States, in some cases by 40 per cent., a Canadian team may not be sent to the 1932 Olympic Gaines at Los Angeles.

STERLING IN UNITED STATES.

REVOLT AGAINST PESSIMISM. NEW YORK, September 24. The pound sterling to-day closed at 4.10 dollars and the Canadian dollar at 94 cents. Wall Street revolted against pessimism. News of the wage-cuts, rumours that railroads would soon get relief, and the confidence implied by the good tone of the London markets, and the removal of the ban on short-selling here, gave quotations a rapid lift. Th principal stocks, at their best, were from two to 15 dollars higher. Profit-taking reduced the gains, but buying was resumed in late dealings, rail shares closing virtually at their best prices, with industrials and utilities showing advances oyer Tuesday's final quotations of from two dollars to six dollars.

AUSTRALIAN BONDS RECOVER. NEW YORK, September 23. Australian bonds recovered some of their week's losses to-day. Commonwealth 4j per cents., £3B, gained GJ points. Commonwealths per cent., 1955, £4l gained 4£ points. Commonweakh 5 per cent, 1957, £3/ gained 1£ points. Brisbane 5. per cent., 1958, lost 10 3-8 points sellings at £29 15s. New South Wales 5 per cent,, 1957, £2B, lost three points. New South Wales, 5 per cent, 1958, £27 10s, 'lost five points. Queensland 7 per cent, £sl, gained one point.

DUTCH BANKERS' SYNDICATE.

AMSTERDAM. September 24. The bankers' syndicate, which was formed to keep conditions normal, has already abolished the monetary tariff and is functioning normally.