BRITISH TRADE REVIEW.

Auckland Star, Volume LXII, Issue 151, 29 June 1931, Page 4

BRITISH TRADE REVIEW.

GREAT CHANGE FOR BETTER. FOLLOWS MORATORIUM PLAN. BANK RATE MAY GO LOWER. (Received 9.30 a.m.) LONDON, June 27. Not for many years has there been euch a marvellous change in financial and commercial conditions as was witnessed this week, following Mr. Hoover's dramatic proposal of a one year's war debte moratorium. A week ago the Stock Exchange and most of the commodity markets were plunged in gloom and despondency. Everybody was fearing what was going to happen in Germany. Monday saw a complete reversal of the position. Everywhere Mr. Hoover's proposal was acclaimed with enthusiasm, and practically every market rallied sharply, and almost every section of the Stock Exchange advancedWheat, cotton, rubber, copper, tin, zinc and silver rose considerably. The only commodities which failed to respond were perishable goods which are mostly so plentiful that an advance is impossible. The good conditions continued throughout the week in the markets.

Yesterday's Stock Exchange official list shows many extraordinary rises. The most marked naturally have been foreign stocks, with German stocks leading, Bri'.h funds, although firm, had been somewhat disappointing, probably owing to the approaching end of the half year and the mistrust about the Government's financial intentions. Dominions' stocks made a fine recovery, materially assisted by the announcement of the British Government's concessions. A satisfactory feature was the improvement in price of several Australian bank snares, which, for some time past have been very depressed. Mining shares also improved considerably on the rise in metals. Financial circles have been discussing the probability of an early reduction in the bank rate. Many persons thought it likely it would have been made last Thursday, owing to the growing strength of the Bank of England's position, thanks largely to the heavy gold influx from Germany. The reserve in the banking department ie now £71,118,200, the highest ever recorded, and the stock of gold is £162,894,416, the highest since May, 1930. But although the position is so strong the bank authorities exercised their discretion, and are waiting until it ie definitely known what the French attitude towards Mr. Hoover's proposal will be. Now that the French Chamber has accepted it, it is generally anticipated that the bank rate will be reduced to 2 per cent next week. Apples and Pears. Apple prices declined somewhat this week, largely owing to heavy arrivals coinciding with enornious supplies of strawberries, gooseberries and to a lesser extent cherries. The market for pears continues good, both in England and Germany. Recent arrivals of Victorians are fetching excellent prices. Wool Outlook Better. Mr. Devereux, Australian wool representative, reports as follows: Largely as the result of tho Hoover proposals, a better spirit prevailed at most of the wool centres during the week, and feelings of gloom and depression were replaced by cheerfulness and hope. The decisions of the Empire wool conference at Melbourne are also favourably received. The continu :d fall in prices has definitely stopped. Values of raw wool tops improved. Whilst with regard to near future possibilities some expansion in international trade now exists, nevertheless it is realised that improvement of world conditions cannot be brought about suddenly. Wisdom and patience will be required to bring about permanent recovery. The continuance of the strike in France and financial difficulties in Germany are responsible for steadying influences at the present time which are checking undue speculation. The ', opening of the London sales on July 7 is awaited with interest as affording a real test of the position.