BRITISH TRADE REVIEW.

Auckland Star, Volume LXI, Issue 188, 11 August 1930, Page 4

BRITISH TRADE REVIEW.

HOLIDAYS IN FULL SWING.

STOCK EXCHANGE QUIET. GOVERNMENT BONDS FIRM. LONDON, August 0. With the holidays in full swing, business on the Stock Exchange has naturally been on a small scale. During the 21 days' account just concluded little speculative activity has been shown, but investments in stocks preserved a good tone. British funds hardened appreciably in the hopes of the cessation of the drain of gold to France and a consequent lessening of the fears that money will become dearer. Victory bonds have been sold at a record price, and the 5 per cent war loan almost touched the highest quotation ever marked. Dominion stocks generally were steady, but Australians have mostly fallen back somewhat from the improved prices realised early in July, and so far have not responded as they might have been expected to do to the Loan Council's acceptance of Sir Otto Niemeyer's views with regard to borrowing. "Safeguarding" Proposals. Barclay's "Bank Review" contains an Interesting article with reference to the bankers' resolution regarding safeguarding. The "Review" argues that the only alternative policy to that of a low safeguarding tariff which might enable. Britain to develop the Empire market and still retain through lower costs of production a fair share of the trade of other foreign countries, would be a thorough reduction in wages, but such a policy would obviously be attended with great difficulty, even though it might reasonably be hoped that an adjustment of wages corresponding with the cost of living might become acceptable on broad linesThere was, however, no guarantee that a reduction in costs of production ill Britain might not be negatived by still higher tariffs imposed by foreign countries. Therefore the most practicable linc v to follow to obtain a more rapid development of Empire markets, as well as to retaining the other foregn trade, would seem to be the safeguarding of the industries of Britain and securing effective power for bargaining in the interests of British manufacturers' trade, as proposed ill the bankers' resolution.

Better Prospects for Wool. Most of the writers on wool appear to find signs of encouragement in the outlook. Their comments are couched in a tone of mild optimism. The "Economist's" correspondent says one gratifying feature is the gradual reduction of the stocks of tops in Germany since the beginning of the year. The decline at the end of June, as compared with January, was more than 1,000,0001b, and the stocks of 4,404,000 kilos were only about half the quantity held in June, 1929. It is also expected that when the June figures of the stocks in France, Italy and Belgium are available they will be considerably less than a year ago, although they were slightly larger at the end of May. This points to an increased consumption of wool and tops en the Continent during the last 12 months, which will pave the way for substantial.buying when the Australian selling season commences. If Continental buyers can operate as freely as at the last London : sales, and the Home trade becomes more active, the standing of raw material values will be very fully assured. Butter Again Dull. The butter market has again relapsed into dullness, consumers having apparently more than filled their immediate requirements- During the period of active buying early in June retailers had been using their cold stored stocks, which have thus been considerably reduced, but still remain very heavy, and as the 'quantities afloat to Britain from the Southern Hemisphere are large, amounting to 257,000 boxes, compared with 148,000 a year ago, there seems likely to be a large amount on hand when the new season's Australian and New Zealand butters begin to arrive. Ecjgs May Be Cheap. The- prospects for the Australian and New Zealand egg season do not appear too promising, and shippers may find that prices will not equal last year's, disappointing as they were. Continental arrivals justnow are large, and although supplies of British show the usual seasonal decline, the demand is poor and the market irregular.