IMPROVEMENT IN BUSINESS.

Press, Volume LXVI, Issue 20027, 8 September 1930, Page 12

IMPROVEMENT IN BUSINESS.

SHARES ADVANCE IN PRICES. AUSTRALIAN SECURITIES RELAPSE. (CKITEB VRMS ASSOCIATION-** .ELECTEIO TIjMBGRAPH—COPHUOHT.) (Received September 7th, 5.5 p.ro.) LONDON, September 6. The Stock Exchange has experienced a welcome .all-round improvement in business, with a considerable recovery in prices, -during the last ten days, and the account just closed is described as the most cheerful of the year. The upward movement began with gilt-edgeds, all British funds showing good ad- ■ vances. These have not been fully - maintained as there has been considerable profit-taking, the proceeds of which apparently have been used for buying industrials, which consequently developed great strength. All classes of industrials participated in the moveand even rubber shares are harder despite the decline in the commodity to a new low record. The thirty industrial shares which are.quoted in the daily index of the "Financial News," have men on the average by 11 per cent, in/A littlo over a week. - jt:' : . : - Australian Securities. The only bad? spot on the Stock Exchange is the ;market for Australian securities; which only a few weeks ago Showed aqroll round improvement. Now, howevcifthat has been all lost, and almost every Australian Government stock has fallen several points. This relapse is ; generally attributed to unwise talk by extremists in Australia, and the mention of that ugly; word "repudiation," which has frightened nervous holders and caused them to throw their stocks on the market. Stockbrokers who deal in Australian securities, and managers of Australian banks, are receiving numerous letters from timid investors asking for advice. They have done their bftst to reassure them, but in the meantime" numerous holders have acted precipitately and prices have gone from bad to worse. Commenting on this phase, the "Morning Post's" Financial Editor says: "The investor in Australian stocks may perhaps bo excused for being rather sensitive in the matter at all events. The effect of extremist talk ' was at first to slightly affect the rate at which the last Commonwealth bills were sold, and later to occasion a reaction in Australian securities. This reaction was accentuated yesterday by the wild statements of Mr W. M. Hughes in a Sydney daily paper. In the opinion of the city, Mr Hughes's 'speech was a very unfortunate one, giving this country.little credit for a genuine desire to aid Australia in her .present difficulties. The writer adds: It must be remembered that these reactionary ~ -speeches do not eminate from quarters '■'.'' responsible for framing and supporting the resolutions agreed upon by the Fed- ' eral and State Governments. There iis *: no reason to suppose that Australia af '■a whole is notJjebind the spirit of the* resolutions, and does not appreciate,the points which have been brought < out very strikingly and faithfully by Sir Otto Niemeyer. ,■ "For many years Australia obtained. ,her loans here on terms which would; have been quite impossible had not she enjoyed the rank of trustee investment. 'That is a privilege which carries with it a great responsibility on the part ofthedebtor.lt is a responsibility which undoubtedly the Australian people ; will be first to recognise." ' . <. Batter Market Unsatisfactory. The buttor market remains in a very 1 unsatisfactory position, there being an almost complete absence of demand. Some people are talking of a possible •improvement next month, but as there are roughly a million boxes of butter™ cold store in Great Britain, and 240,000 boxes afloat from Australia, New Zealand, and Argentina, it is difficult to foresee any great recovery in prices,, although Continental production is falling oft. It is worth recalling that the prices to-day are roughly fifty shillings per ' hundredweight lower than those prevailing for Australian and New Zealand batter a year ago. Wool Sales. The next series of London wool sales, opening on September 10th, is being awaited with considerable interest, and sellers are hopeful that. prices for good combing merino wools will be firm at about the closing rates of last sales, for during the interval between the sales there has been a well-sustained consumption pf fine wools and tops. ■ The Bradford correspondent of the "Economist" writes: "There is certainly more hopefulness about the entire industry, and though there is room "for improvement, the placing of 'new business clearly indicates that wool will be", wanted for tho execution, of those - orders." , ' '; AUSTRALIAN EXPORTS. STABILISATION OF FREIGHTS. (UJiITXO MMSS ASSOCIATION—** ELECTBIO TEUBGBAPH-^COJTKIOHT.) SYDNEY, September 6. Important decisions have been reached by tho Council of the Australian Oversea Transport Association, having as its object the rationalisation of shipping in handling Australian exports, the stabilisation of freights at present levels, and an eventual reduction 'in freights. ~.■,'. - The freight on wool, except that shipped to Japan and the United States, will be increased by one-six-tennthAof a penny a pound, end a "loyalty" rebate of Is 9d a bale on greasy wool and Is 6d a bale on scoured wool will bo made at the end of the season. A compromise lias been reached on the question of the payment of freight on refrigerated cargo, <m the basis of London sterling, the shipowners agreeing to meet half the cost of exchange. The exporters of butter and fruit have agreed to this proposal, and the meat industry will decide the question next week. EMPIRE PREFERENCES. EXTENSION POSSIBLE. ''. (UKItBP PBIBS ASSOCIATION—B* BtiECTBIC TBUBOBASB -COPTBJOBT.) (Received September ?th; 5.5 p.m.) LONDON, September 6. The "Daily Herald's" political cor k . respondent says: The existing Empiro ' preferences will he retained, and may. V tfreri be extended.