BUOYANT TRADE.

Auckland Star, Volume LXIV, Issue 196, 21 August 1933, Page 7

BUOYANT TRADE.

OPTIMISM IN BRITAIN.

Weight of Evidence Supports Death of Depression. TREND FOR AUTUMN UP-SWING (United P.A.—Electric Telegraph—Copyright) LONDON, August 20. Many of the newspapers are taking an optimistic view of the trade position. Among them is the "Daily Express," which mentions' the growing belief in the city that the autumn will see a revival of British trade that will far outstrip anything which has occurred since the world slump began in 1929.

.Brokers, bankers, shipping leaders and other well-placed observers, who hitherto have adopted a cautious attitude toward trade recovery, are being converted by the accumulating weight of evidence.

Coming on top of the progress already achieved this year an autumn up-swing of trade will prove conclusively that the slump is dead. Progress from then onwards should be steadily upwards toward the peak of the trade cycle.

Although the holiday season is in progress, the London Stock Exchange is showing remarkable activity and strength. Brokers say this is the busiest August since the boom days of 1928-20. Tho pressure of work is so great that many firms have increased their staffs and many partners have postponed their summer leave. Tho number of dealings recorded in the official list has been averaging more than 7000 daily. This is well above the average. Continued Rise in British Funds. A feature of the market has been that tho continued rise in British funds has been accompanied by a general advance in goldmining shares, notably South African and Australian, while a wave of optimism has swept over the industrial markets, many of these shares reaching near to high records. Among the industrials which are in active demand are distillery shares, owing to the anticipation that the United States prohibition law will be repealed before Christmas. It is reported that several distilleries in Scotland have been reopened, after having been idle for some time, to meet the demand from America where there is very little matured whisky. American syndicates already have placed large orders in Scotland, and the prices of some grades of whisky have risen 50 per cent in two months. The Distillers' Company, Limited, a great combine with a capital of £14,000,000, is said to have secured large American orders. On the strength of this report its ordinary shares have advanced to 90/3, showing a rise of 10/ in a month. Last year the price of these shares ranged from 40/ to 58/.

America also is a large buyer of hops at present. According to the chairman of a large brewing company, it is

thought that within the next few months a large proportion of the growing crop of English hops, also next year's crop, may be sold out of this country before the English brewers' requirements have been met, as there are no stocks in the hands of tho Marketing Board.

If this expectation is realised there appears to be a good opportunity for Tasmanian hops in the British market.