PRICES MOVE UP.

Auckland Star, Volume LXIII, Issue 198, 22 August 1932, Page 4

PRICES MOVE UP.

MOVEMENTS IN BRITAIN

LEAVING SLUMP BEHIND,

Attention in the markets of the world is daily being more closely riveted on the course of commodity prices, says the "London Daily Express," dated July 14. For four successive weeks prices have risen. Hopes are growing that this indicates the end of a three years' commodity slump which has produced world-wide depression, involved . many countries in default and destroyed millions of pounds of capital. Three factors are bringing consumers back to the markets. They are' cheap money, a relaxation of exchange restrictions in several countries, and increased confidence in the outlook. The "Daily Express" index of commodity values is at its highest point since March 31. The index, which is based on the 1930 average price of 20 commodities, has risen t0,73.3, compared with 69.0 four weeks ago. This is the most pronounced upward movement since the rise in prices following the suspension of the gold standard. It has been accompanied by a corresponding rise in gold jyices, as measured by American indices. Dealers in the principal commodity markets are more hopeful than for months past. Cotton brokers report a much better demand in the Manchester markets. The shelves of the world are devoid of stocks, and there is a great hope of a revival in the Lancashire cotton trade, with consequent increased demand for raw cotton. In the rubber market an improved 'trade demand and more speculative inquiry have brought up the price from last month's low level of l%d a lb to 1 15-16 d a lb. United Kingdom stocks of rubber, which represent the reserve supply for all the European manufacturers, ' are steadily falling. They now represent five and a half months' supply, against seven months' supply a year ago. In the metal market, tin has risen £25 a ton from the year's lowest level. More optimism is felt as to the future, for the statistical position is improving and available supplies are falling.

A better atmosphere also pervades the copper market; the removal of the Russian menace and the fall in European stocks have produced a healthier position in wheat, and NeW York sugar prices have risen by no less than 75 per cent in a month.

Wool prices are definitely on the up grade. The outlook for the Bradford woollen industry is described as better than at any time since the suspension of the gold standard.

Other commodities which are. rising in price include jute, tea and rice. Rising prices mean a restoration of purchasing power to the primary producing countries, leading to a revival of international trade and more employment in the manufacturing countries.