BUSINESS IDLE.

Auckland Star, Volume LXIX, Issue 208, 3 September 1938, Page 9

BUSINESS IDLE.

REACTION ON MARKET.

Germany's Abnormal Rubber

Imports.

HOME SUBSTITUTES FAILED?

United Tress Association.—Copyright.

(lieceived 11 a.m.)

LOXDOX, September 2

Resisting a welter of rumours ami counter-rumours, investors continue to await definite facts as to the outcome of the Czech crisis before rushing into the markets. Business, therefore, has remained idle all the week

The tone, however, is steady, but the seriousness of the situation is reflected by the reaction of gilt-edged stocks Dominion issues have .shared tl lc irregularity in the gilt-edged market, lolitical fears caused industrial stocks to sag.

Economic developments continue unta\ourable as is evidenced bv the fall of sterling, the severe further" decline of rail and traffic shares, and the accentuation of recession in export trades.

Commodity shares are <|iiict. rubbers being steady with commodities irregular, mainly as the result of internafional uncertainties.

Evidence is accumulating of an abnormal restocking movement goin<r on in Germany. The rubber bulletin shows that imports in the first six months of 19.38 totalled 54,.331) tons, compared with 52,419 for the corresponding period of last year, when imports were double the normal consumption level.

The Imperial Economic Committee comments on the exceptional imports of greasy wool in the first six months of 1938, which is nearly 50 per cent above the 1937 figure, though German exports of wool products declined.

The implication of these abnormal movements is that either substitutes are proving disappointing or huge stocks are being laid up for international reasons.

"ALL FEAR WAR."

United States Ambassador's Opinions. PREVENTION OF DISASTER. British Official Wireless. (Keeclved - p.m.) RUGBY, September 2. Speaking at Aberdeen, Mr. J. P. Kennedy, L nited States Ambassador to London, referred briefly to the international situation. He said that some nations in the world were involved iu disputes both internal and external. The rest were anxiously watching, and doing what little they could to counsel patience aud forbearance, and above all, the avoidance of war. '"For that is a principle on which we can all agree. "We do not want war to break out. not only because of its immediate effect on ourselves but because of the devastation it will leave in its wake, visited on millions of innocent, unoffending people. We owe it to the great mass of people in our countries, to other countries and to our children and to ! theirs, to leave no avenue unexplored in our efforts to prevent war. "Certainly the peoples in the world do not want to fight each other. Their leaders say that they themselves do not want war unless they are forced into it. In such circumstances it ought not to be beyond the reach of "human intelligence to prevent the disaster that everyone seems to fear. I believe it can be done by faith, by spiritual courage, by loyalty to right dealing and by the exercise of commonsense."

MOST SIGNIFICANT.

RECENT DEVELOPMENT

British Official Wireless. (Received 12.30 p.m.) RUGBY, September 2. Herr Henlein's visit to Herr Hitler at the request of Lord Runciman is 'given great prominence in the newspapers. The "Birmingham Post" diplomatic correspondent regards this as the most significant development since the situation regarding the Sudetens became critical.

In this writer's opinion the step has the result of bringing near a decision for reopening the negotiations for an agreed settlement, since he assumes that both Herr Henlein and the Runciman mission believe that the new proposals of Czechoslovakia provide a necessary basis for renewal of discussions, and he interprets the approach to Herr Hitler as a desire to obtain the latter's support for peaceful procedure.

The "Daily Telegraph" diplomatic correspondent" also takes the view that Lord Runcimaivs request to Herr Henlein means that he considers the new proposals in their general conception offer a basis for negotiation of a reasonable settlement. The importance of this stage in the crisis at Prague is appreciated in London.