TRADE REVIEW.

Ashburton Guardian, Volume 56, Issue 244, 28 July 1936, Page 5

TRADE REVIEW.

FLUCTUATION IN BUTTER.

SLIGHT ADVANCE EXPECTED.

(United Press Assmiation—Copyrightz

(Received This Day, 9.5 a_.m.) LONDON, July 26. The revolt in Spain, like so many of its predecessors, has had practically no effect in the city. There are few countries in which investors have a smaller direct interest, and the Spanish Government has only a single loan on the Stock Exchange official list. The market’s activity has been almost unfettered and leading industrials are breaking the year’s already high records. Gilt-edgeds are markedly improved owing to the success of recent corporation issues and have derived further encouragement from the Chancellor’s statement that he hoped the worst of taxation had passed. Heavy industries are again hot favourites. Most of them stand substantially higher than last month, and the improvement has spread to shipping, where I’. and O. spurted in midweek.

The activity has raised the perennial question, “Can the recovery last?” The “Economist” considers» that the surface indications .are most favourable. Building is well maintained, the iron and steel industry is operating at capacity, andproduction of new motor «vehicles continues at an amazing rate. Consumption of food is increasing, with the exception of butter. 'On the other hand, indications are not lacking that prices are beginning to rise. The Board of Trade index shows wholesale prices 5 per cent. higher than last year, Wages 2% per 'cent. higher, and still rising. Increases in imports are causing lanxious attention, though the decline ‘in exports is less alarming, as an ‘ analysts shows that it is only consider- ‘ able in the case of eight industries, of ‘which the decline in coal is due to Italy’s withdrawal from the market and the decline in raw wool and cot- ‘ ton waste is due to a cessation of the ‘German demand. The reduction of exports in most other countries is due to a concentration on the home market as a result of rearmament. Summing :up, “The Economist” considers that Britain has lost much or the advantage which the depreciation of sterling gave her in 1931. There are the clearest indications that the present boom has reached maturity, and the prudent will prepare for a change which may come soon. Butter fluctuated slightly, and the trade is expecting a. better inquiry ‘with the approach of the bank holiday. ‘Therc possibly will be a further slight ‘appreciation before the end of the month. ' . Arrivals of apples are _very light. The chief offering is composed of cold. stored fruit. Competition for heavy iqnantities of soft fruits, especially Iltalian, is affecting prices, and more;over, English apples are making. an appearance. Nevertheless, there IS a ldistinctly better tone. No pears are ‘ available, but 17,000 boxes are expected next week.