BRITISH TRADE REVIEW.

Auckland Star, Volume LXV, Issue 184, 6 August 1934, Page 4

BRITISH TRADE REVIEW.

STOCK EXCHANGE STEADY,

SUBDUED CHEERFULNESS

(Received 9.30 a.m.)

LONDON, August 4.

The London Stock Exchange in the past week underwent a rapid transformation. Early in the week there was a tone of extreme nervousness owing to the dieturbing developments on the Continent, but the end of the week brought subdued cheerfulness. It was the Wall Street market, the furthest removed from the zone of the trouble, which displayed the greatest perturbation over European affaire. It even had some days of panicky selling. This was due, perhaps, as much to internal difficulties as to European factors. . „ ~ . i The "Financial Times" eays the technical position in Britain must be sound indeed, for the influence of the Dollfuse tragedy to have been thrown off in such a short time. So far there is no confirmation available of the rumours that the Yorkshire delegation to Berlin has reached an ■ agreement which will enable Germany again to buy raw wool, tops and yarns, which her manufacturers badly need.

Referring-to the new wool Belling season in Australia, the "Yorkshire Post" says: "Although nobody wishes to see world values unduly depressed . by substantial unloadings on a market temporarily unable- to absorb them, it would not help to withhold all offerings by a concerted movement. The situation could best be met by smaller offerings and a longer selling season in Australia." An article in the "Midland Bank Review" on gold says: "Gold in these times is simply a commodity produced mainly within the Empire from mines owned largely in this country. It is sold to foreigners at very favourable prices, so we make a handsome profit out of o;ir activities. The foreigner, indeed, acting through his Government and central banks, guarantees a highly favourable price for every ounce we care to produce. What other producers are in this happy position ot possessing an almost unlimited capacity to nroduce and a guaranteed market for their product? , "Owing to the manner in which Britain went off the gold standard in 1031. absolute freedom of movement of gold into and out of the country h-.s been maintained. Consequently tine has preserved London's own position as tlic world's principal gold market. The writer estimates private holdings of gold now in London at between £100,000,000 and £150,000,000."