THE TRADE REVIEW

Ashburton Guardian, Volume 54, Issue 16, 30 October 1933, Page 5

THE TRADE REVIEW

STOCK EXCHANGE CHEERFUL,

THE BUTTER MARKET DULL.

PRICE AFFECTS THE DEMAND.

(United Press Association—Copyright), (Received This Day, 8.30 a.m.) LONDON, October 28.

The Stock Exchange quickly recoveredfrom the fit of despondency which followed Germany’s bombshell at' Geneva,! and a cheerful feeling is now displayed in all markets. This is attributable, as the “Statist” says, to a variety of factors, chief of which is probably the. renewed flight into sterling securities caused by the; developments in France, the United States: and elsewhere. President Roosevelt’s latest declaration is taken as a definite bullpoint for gold-mining shares, as was also the uncertainty created by the defeat of the French Government. For similar reasons an influx of foreign funds into the gilt-edged market is i eported. The domestic demand has also re-asserted itself under constant pres- 1 sure of a heavy floating stock of money unable to find profitable investment m other directions. This factor is being all the more potent because of the confidence engendered by the soundness of the national finances. An illustration of the plentifulness of money is afforded by Southern Rhodesia’s loan ot £2 250,000, of which, according to market rumour, over £50,000,00;0 was subscribed by 30,000 applicants, with the result that the Bank of England was almost snowed under and was unable to issue letters of allotment on the day the subscription-lists closed. Dneve was a rush for. this stock to-day at l- a premium. Industrial shares have again come into favour, notably brewery, tobacco, iron,/steel and textiles. Some idea of- the activity of the markets may he gathered from the fact that the number of bargains recorded during last week, not counting Saturday, ranged from 7753 to 8879 daily. The new tin agreement is expected to have a good effect on the prices ot metal and tin shares. The “Financial Times” points out that at the recent Prices most of the low-cost tin producers have been able to make profits, even although working only at onethird capacity. .Some are actually able to re-enter the dividend-paying list. These fortunate companies will derive greater benefit from the permission to increase their outputs. By December 7 when the International Tin Committee will hold its next meeting, the American outlook should he cleaiei. Indeed, the remarkably successful tin plan may remain in operation indefinitely and prove a model for .the advantageous regulation of many anothei primary industry. Although stocks of butter in cold store were materially reduced in the first fortnight in October s they now amount to 795,000 boxes, against 965,000 a month earlier. The market has been dull, with prices easier. This is probably due .to the statistical position, for the total afloat to the United Kingdom from Australia, New Zealand and Argentina amounts to 84.6,880 boxes, compared with 817,370 a.year ago. The reduction in the price of Danish lias also tended to weaken the market. This reduction is apparently due to diminution in the amount purchased by Germany. It is a possible that the consumptive demand hero was affected by many retailers raising the price of Australian and New Zealand to 13d per lb. Consumers resent paying the extra penny, and some prefer to give 14d for Danish. Next week the retail price will he brought down to Is in the hope of stimulating the demand. Australian eggs are selling briskly .at firmer prices. This is due to colder weather causing smaller production in England and on the Continent. An interesting feature is the increase in thenumber of poultry-farmers in England and the consequent greater production which resulted in a decline of importation of foreign supplies. In the first nine months of 1933 the total imports to Britain were, roughly, 13,000,000 longs hundreds, compared with about 19,000,000 in 1931. Australian eggs continue to grow in popularity, and more grftcers aro stocking them. This is partly d.ue to the trades publicity propaganda campaign advertising them in the large newspapers, as well as the grocery trade papers, but it is chiefly due to the excellent quality of the eggs.

THE WOOL MARKETS.

BRADFORD AND CONTINENTAL. (Received • This Day, 8.30 a.m.) LONDON, October 29. Mr W. L. Devcreux (representative of the Australian Wool Growers’ Council) reports that in sympathy with a firmer tendency overseas the markets for fine wools have rather appreciated in price, hut low quotations from South America for. coarse crossbreds have been, a somewhat disturbing influence in these descriptions. There is a sound tone at Bradford. ' Merino topmakers have again advanced prices. Spinners are”reluctant to follow, but a satisfactory amount of new business has been transacted. Fine crossbred tops have advanced and business has been transacted at a higher level. Medium low crossbred tops have improved, but there is not much new business. There is increased activity on German markets, where sales of tops have substantially increased the volume of Continental figures. The markets are fairly active.