CHEERFUL TONE

Auckland Star, Volume LXIV, Issue 232, 2 October 1933, Page 7

CHEERFUL TONE

LONDON BUSINESS.

TRADE BRIGHTENING.

Progress Slow But Upward Cycle Unmistakable.

BRITISH REVIEW. *

rtnitca r.A.-Elcctric 'Xclcgrapli— Copyright)

(Received 11 a.m.) LONDON, October 1

The London Slock Exchange maintains its cheerful tone in all deuartments, thanks to a number of favourable influences, notably the eood reception of tho. now conversion loan and the brilliant success of the Commonwealth issue which is reflected in the firmness of gilt-edged stocks.

Industrial shares benefited by the hjjming of tho Anglo-Argentine trade agreement and tho vise in prices of numerous commodities, notably rubber, •which advanced sharply on the appointment of a Restriction Committee to collaborate with tho Dutch. It is now Relieved there is a good chance of the restriction scheme being enforced next snriii". This caused a boom in rubber shares several of which advanced about 20 per cent in the week.

Tho news from Canberra that another Commonwealth conversion loan is pending is not surprising in view of this ■neck's successful operation, but there is some doubt whether it can be done just ■vet. It is understood that South Africa lias a prior claim to convert about £15,000.000. Also, as the "Morning Post" points out, having regard to the fact that thcro is a large call of 03 per cent bn the last loan due on October 30, there is something to be said for a pause before tho next conversion operation is attempted, especially as, so far as can ho seen at present, there is jio reason to anticipate any setback in trustee securities. State of Trade. Describing tho state, of trade, the ''Economist" in the "Monthly Review" Savs: "Although the latest evidence of tho trend of industrial and commercial activity at Home and abroad remains encouraging, it would be idle to deny that the path to prosperity is still long and thorny. Nevertheless, now it seems almost beyond doubt that tho trade cycle is on an upward movement, and las come through the holiday period without serious mishap. "Progress is slow, and many elements, political and economic, in tho situation remain obscure, but there is ground for liope that in the absence of further deterioration in the United States, ' coupled with the aggravation of political difficulties on the European Continent, the improvement in the world's economic situation will continue in , the near future." The revival in the world's industrial activity has been accompanied by an improvement in tho position of a large section of primary producers. With few exceptions, the output of industrial raw materials does not now exceed the curTent consumption at the prevailing level of prices. In many cases the stocks •which have been accumulated in recent years have begun to decline. Slight Setback for Butter. The butter market has had a slight feetback owing to a slackening in the demand from buyers, who recently have "been purchasing heavily, and now are folding off. Sales of Australian have been so good lately that practically nothing is left on importers' hands. However, there is a considerable quantity in cold store belonging to big "wholesale firms, who are buying all through the season. Among Australian food products now coming into favour are sheep's and calves' tongues in glass jars, which the Kew South Wales' and South Australian Agencies-General are displaying at Australia House. They are attractively got tip, and are meeting with steadily increasing demand. Another line recently introduced is stowed rabbit with vegetables, in glass jars. This also is proving so popular that a large consignment las been ordered. Trade in frozen rabbits has been brisk, and now the season is in full swing. Prospects for the Australian egg trade in the immediate future aro not regarded as bright/as Gl,ooo cases (nearly 22,000,000 eggs) are due to arrive within a fortnight. There is a possibility that the propaganda campaign to increase tho sale of wool will attain large . proportions in France. Lord Barnby, referring to the subject in an address to the Leicester Textile Society, said: ''Wo ought to be encouraged by the example Xew Zealand has given in sending a representative here to enlist enthusiasm in collective action. It would seem logical, in our own interests, that the United Kingdom should respond to this move."