IMPROVED TRADE

Ashburton Guardian, Volume 52, Issue 7, 19 October 1931, Page 5

IMPROVED TRADE

CONDITIONS IN BRITAIN.

COAL AND COTTON INDUSTRIES.

STOCK EXCHANGE CHEERFUL,

I United Press Association —Copyright) (Received This Day, 8.5 a.m.) LONDON, October 17.

The improvement in trade cabled a fortnight ago is being steadily maintained, with a further increase in employment in many industries. One of the most satisfactory features in the continued growth of the coal export trade is that reports from Hartlepool state that this week's shipments from there reached a record of 73,187 tons. From Lancashire come further encouraging reports. According to "The Economist's" correspondent, since" the end of the third week of September a distinct change has come oyer all engaged in the cotton industry. Spinners, manufacturers, merchants, ;and agents have encountered a definite trade revival, and business was done on a large scale. It is held in some quarters that the buying movement has been: stimulated owing to external matters which may not last, but it is sufficient to say that numerous producers have obtained relief and are now in a much stronger position to hold out for higher prices. Conditions at the moment are abnormal. Many things may happen in the near future, but the' relief obtained is very welcome. There is ground for believing that the in-rged demand for goods will spread. There is little likelihood of cheaper rates for raw cotton.

The improvement on the Stock Exchange has also been maintained, for though there has not been a great amount of business, the tone of the market has been decidedly more cheerful. The markets are being largely dominated by hopes of a National Party victory at the elections. One of tlie most welcome signs is the improvement of home industrial stocks, many of which show really wonderful advances compared with a month ago. Thus, in iron, coal and steels, the shares of eight companies show improved values ranging from 14 to 7;6 per cent. In seven textile companies the improvements range from 26 to 113, and in four home railways from 15 to 107. Most satisfactory of all to Australians is the upward movement of all Commonwealth and State stocks. Since the beginning of the month Commonwealth fiye-per-cents are 12J per cent, higher, six-per-cents 13J. Victorians range.from 9to 14 higher; New South Wales 4 to 13; Queensland 5 to 10; 'South' Australian 4 to 8 and Tas • manian 4 to 0, and Western Australian 5 to 6 per cent. New Zealand's also improved by 2 to 4 per cent, though, of course, in New Zealand's case the set-back has not been so serious as it was in Australia's case.

■The financial papers, calling attention to an improvement, point out that Australian stocks at present prices are still giving splendid returns, mentioning seven which, allowing for redemption, yield returns ranging from £6 17s per cent to £l4 10s. Attention is also directed to Australian bank shares, some of which, as "The Investors' Chronicle" points out, have fallen so heavily in the last 12 months that they are now at reasonable prices for lock-up investment purposes. Thus at the present price Union Banks yield Gil per cent., tax free, on the basis of the reduced dividend paid for the year ended February. The Bank of Australasia and the Bank of New South Wales similarly return about 8 per cent. The same applied to a number of Australian, pastoral companies, Which can now be purchased very cheaply, and ought to show considerable improvement, in the not far distant future.

Importers of Australian eggs are having a difficult task to dispose of them just now, for supplies from all sources are very heavy. A continuance of warm weather allows Continental production to be maintained later than usual, and arrivals of Continentals last month were more than double those for September, 1930. Under these conditions it is quite impossible to maintain the prices realised early in the month, and present values of Australians are from 10s 6d to 12s 3d per 120. It is now recognised that importers made a mistake in rushing the price to 14s as they did three weeks ago. At the present figure Australians can be . profitably retailed at three-halfpence. Importers are hopeful that this may stimulate the demand. The British housewife can certainly supply the breakfast table cheaply now, for bacon has just been reduced by about 10s a cwt, and the wholesale price of best Danish is only 'about 60s a cwt. This follows a record killing of pigs in Denmark this week, the number killed being 100,500, which is about 20,000 above the previous record. As "The Grocer" newspaper points out,, the expansion of exports of bacon from Denmark has been simply marvellous. Poland has also shown remarkable development, her exports in the first nine months of 1931 totalling 27,790 tons, compared with 10,703 last vear.

THE WOOL INDUSTRY,

CHEERFUL TONE AT BRADFORD

/Received This Day, 8.5 a.m.) LONDON, October 18. Mr W. Devereaux (representative of the Australian Wool-growers' Council) reports that in view of the chaotic conditions prevailing in politics and finances of all wool - consuming countries the condition of the trade can best he described as being as good as circumstances permit. Existing conditions and uncertainty regarding the future renders all transactions more or less speculative. Official repoits from Bradford indicate that the increase in the price of raw materials in the primary markets resulted in a hardening tendency for merino tops Considerable inquiry is reported and some new business in production has

been taken up freely. The tendency in crossbred tops is in sellers' favour. There is also a certain amount of new business. Machinery is active in all sections. There is no undue optimism, but a certain amount of quiet satisfaction. The tone at Bradford is cheerful. In Germany the position continues most critical." Sales of tops last week again exceeded a million kilos. ' "Sales of tops in France are _ maintained, but the yarns market is less active. Transactions for export are difficult while inquiries from French users have diminished. General financial position on the Continent continues to cause anxiety and checks busi-

ness. , . TJ n Most of the combing mills in .Belgium are working half time, but sales of tops are satisfactory. .Scoured and carbonised wools are meeting better demand. The futures markets at Antwerp and Boubaix show a slight hardening tendency. ■ .-