BRITISH TRADE REVIEW.

Auckland Star, Volume LXII, Issue 69, 23 March 1931, Page 4

BRITISH TRADE REVIEW.

TONE OF QUIET CONFIDENCE.

AUSTRALIAN STOCKS IMPROVE

INDUSTRIAL SHARES ACTIVE

LONDON, March 21

A tone of quiet confidence is apparent on the London Stock Exchange, although business generally is somewhat restricted owing to the uncertainty as to what the Budget will bring forth. High-class investment stocks are well quoted, though some Australians have weakened slightly in the last two days. However, considering that many of these stocks recovered 12 to 19 points from the low level of a month ago, it is only natural that there should be some profit taking. This is responsible for the slight setbacks which have occurred.

The position of Australian stocks is certainly much sounder than at any time since the bogey of repudiation was raised and timid holders no longer are throwing stock on the market.

Industrial shares have been somewhat hesitant, but a burst of activity yesterday followed upon the announcement of a gramophone merger, and thousands of shares in the two companies concerned changed hands. This was stimulated by the demand for shares from Wall Street. The closing price of Columbias was 58/9 and of Gramophones 55/9. As it is believed that the merger will result in such considerable economies that the shares in the new company may eventually be worth 100/, the rush for them is not surprising.

That the Stock Exchange takes a more hopeful view of the outlook may be gathered from the fact that the number of new candidates for membership is well up to the average. Six weeks ago nominations for membership were oifered at £220. To-day's price is about £400.

Optimistic Shipowner. Lord Kirkley, a well-known shipowner, struck an optimistic note in a recent speech at Newcastle. After describing the serious industrial position in Britain, he said: "If these conditions were confined to this country there would be reason to wring our hands and write Ichabod over our portals, but they are world-wide. Reports from abroad show that the peopie of Britain are meeting their troubles with more fortitude, efficiency and cheerfulness than those of some other countries. "The position is almost an exact parallel to what happened after the Napoleonic and Franco-German wars. There arc far too many Jeremiahs about. T am satisfied that pluck and grit will sec this country through her troubles. '"Depression is a mental condition which inevitably hinders people from seizing opportunities when world trade makes a turn for the better. There are signs that that turn is coming; and Britain must be ready to take her place in the international wrestle for trade." Butter Market Eases. Butter importers have not been able to maintain prices, and all descriptions have fallen several shillings. The decline is the greatest in Danish, which undoubtedly is feeling the competition with Australian and New Zealand, thanks to the Empire Marketing Board's efforts to push Empire butters in the North of Pmgland. Fine, warm weather is causing a slight increase in production on the Continent. Consequently the demand has diminished. Among other causes for the decline are the willingness of some holders of cheaplybought butter to accept a smaller profit, and lower c.i.f. offers for shipment from Australia and New. Zealand. In regard to the Irish Free State dubon butter, the Tariff Commission has recommended a permanent duty of 4d a lb. The "Economist's" Dublin correspondent says the alleged justification for the recommendation is that it will stimulate winter dairying in the Free State and remedy the old evil of irregular production throughout the year. The immediate effect of the tariff has been to raise the price and cause much dissatisfaction among the consumers in the towns. It is difficult to believe tlia-t the farmers will be so altruistic as to resist the temptation to cease butter production during the summer for the higher winter price. The Minister of Agriculture has intimated that any such action would be considered ground for revising or repealing the duty, but no machinery has been provided to prevent it.