FINANCE AND COMMERCE.

Press, Volume LXVIII, Issue 20711, 23 November 1932, Page 12

FINANCE AND COMMERCE.

GREAT BRITAIN'S FINANCES. RECOVERY AND EXTRAVAGANCE. A BANKING COMMENT. In a recent issue we republished from iho September issue of Lloyd's Monthly Review an article on the progress made during the year in stabilising Great Britain's finances. The October issue, under the heading of "Re- , overy and Extravagance," makes further observations on the subject. Since the September article, the Re- \ iew states, there have been certain «i"ns of a stirring of the world's economic system. Prices of staple commodities have definitely risen in a large number of cases. A more cheerful and hopeful tone is noticeable not only in Uritish industrial areas, but also throughout the world. "It is small wonder, therefore," the article states, "that people are eagerly asking, is this upturn genuine? Is it the beginning of a real revival? The pessimist's answer is very simple. All lie has to do is to point out that the recovery is solely a recovery of prices. Kmployment is no better, production is -till reduced to a minimum, international trade remains at its recent low ebb, bank advances and acceptances, which are the lubricant of business enterprise, continue to shrink. And so far lie is right. For neither here nor in the United States has trade, in the broadest >cnso of the word, really moved at all. On the other hand, it is permissible to rejoin that no one could have expected a trade as opposed to a prico recovery to begin in the holiday season, and that events are following out the normal cycle of revival as defined in the economic text-books. The first* stage ivus reached early this summer with a regime of cheap and plentiful money. Then came the next move, namely, the rise in gilt-edged stocks, and this was strengthened and accelerated in the .•ountry at least by the war loan conversion operation. The next stage in the text-book cycle is the business and production revival itself, and this, the optimist may argue, may be reached at any moment. The fact that it has not yet been reached does not disprove the general text-book theory."

The Budget Results. After reviewing the progress after the LWI-32 Budget the Review states that Mr Snowden's success was so outstanding as to leave many people under the impression that the National Government had achieved the task of putting iinances upon a stable basis, and that their state had ceased to be a problem or an obstacle in tho way of trade revival. Nothing was further from the truth. The economies that Mr Snowden effected a year ago, drastic though they were, did no more than compensate for tho inclusion in the Budget of items of expenditure which ought to have been there before. Further Needs. "It is impossible to escape the conclusion that to-day the balance is weighted far too heavily upon the side of spending and that this is due to the size oi: the Budget. It may be that once more Uarch 31st will show that the revenue has been successfully collected, though already there are signs that certain duties, notably stamps, may fail to fulfil the year's" estimates.-' But even if success ia attained, it will be a barren victory, and there ia all too good reason to fear that the price paid will bo the postponement of recovery. "We therefore iirgo the Government to realise that the next move along the road to revival rests with them, and that it is a move which must be made at once. Let them follow up the saving effected through War Loan conversion with the preparation and announcement of savings on supply expenditure equal to at least £100,000,000 a year. Let them further state that theao will take effect at once, and that tho consequent tax remissions will be made in next April's Budget. "Were they to do this, those who are accustomed to save would plan to do so at once, and those industries which are dependent upon saving and investment for their employment would begin at once to prepare for the new and more favourable conditions. "An immediate announcement of Government economy would not only give the next impetus to recovery, but would ensure that it would be a balanced recovery spread over the whole industrial field. Unless the Government helps in this way, we will either miss a possible recovery altogether, or if it comes it will bo of a partial and unhealthy character, based upon personal extravagance and limited to the industries catering for current needs and luxuries. In the end this would be even worse than no recovery at all today. We have a better chance than we have had since the crisis began. The Government has behind it a strong Parliament and the support of every thinking person in the country. It is for tho Government to take that chance at once, before it disappears, and to do so on behalf of the nation. The failure of Mr Chamberlain to take such action hitherto is the one glaring flaw in the Government's record! Why has it not implemented its promise of drastic economy?"

HARBOUR BOARD LOAN. REDEMPTION ISSUE OF £136,000. .Several thousand pounds' worth of debentures in the Lyttelton Harbour Board's redemption loan of £l3 C,OOO already have been applied for, and the Board's secretary and treasurer (Mr G. H. Clibborn) told a reporter yesterday that at the present rate of demand thcro was every prospect of the whole issue being absorbed at an early date. .Mr Clibborn said that all sections of I ho community were represented by the applicants. The fact that applications had been received from the territory extending from Auckland to luvercargill indicated, he thought, that not only in Canterbury but also in other parts of the Dominion, the Port of Lyttelton was considered a sound investment. Details of the loan are given in an announcement by the Lyttelton Harbour Board which appears olsewhere in this issue. SALE OF BUSINESS. Ford and HadiieJd, Ltd., report having sold on account of. Mrs J. Manwon, the business at present being carried on at tlio corner of Peterborough and Madras streets, City, to Mr stephous. b

WOOL. A BUYER'S BELIEF. PRICES MUCH THE SAME AS LAST SEASON. [THE PRESS SpocUl Serrlct.] AUCKLAND, November 22. A belief that wool prices would be much the same as they were last year was expressed ■ by Mr J. A. Beaurang, representing Messrs Kreglinger and Fernau, wool-buyers, who arrived in Auckland by the Marama for the New Zealand season. lie went on to Christchurch. Mr Beaurang said ho did not see any factors which could make prices rise. "Speaking personally as an individual I would like to sec them go up, for I work under commission rate 3," he said, "but I don't think they will." Mr Beaurang, who has just come from Australia, said the prospects there did not seem indicative of a rise. The demand for wool was the same, he said. Its use as a commodity was not being superseded, so that just as much was needed to meet the world's requirements, but there was not the money to buy it. That was the long and the short of it. SYDNEY SALES.

PRICES REMAIN FIRM. (Received November 22nd, 9.20 p.m.) SYDNEY, November 22. At the wool sales, 10,744 bales were offered, and 08:33 were sold, 1425 being disposed of privately. The market showed no change, prices ruling being very firm. Good clearances were made of greasy merino at 18Jd per lb. THE LONDON AUCTIONS. ORDER OF SALE. The Bank of New Zealand has received the following cabled schedule from its London office tabulating the order of selling for the November series of wool sales: — To-day—Schwartze Buchanan and Co.; Hughes and Willans. November 24th—Buxton, Ronald, Du Croz and Co. November 25th—Irwell and Co.; Balme and Thomas. November 28th—Jacomb Hoare and Co.; Windeler and Co. November 29th—Hughes and .Willans; Schwartze Buchanan and Co. November 30th—Buxton, Ronald, Du Croz and Co. December 1st —Balme and Thomas. December 2nd—Jacomb Hoaro and Co. December sth—lrwell and Co. I December 6th—Windeler and Co.; Buxton, Ronald, Du Croz and Co. December 7th —Hughes and Willans; Jacomb Hoare and Co. December 8th —Balme and Tiioinas: Irwell and Co. December 9th—Buxton, Ronald, Du Croz and Co. December 12th —Schwartze Buchanan and Co.; Hughes and Willans. December 13th —Buxton, Ronald, Du Croz and Co.; Windeler and Co.; Irwell and Co. December 14th—Hughes and Willans; Sclrwartzo Buchanan and Co.; Jacomb Hoare and Co.; Balme and Thomas; Buxton, Ronald, Du Croz and Co. BRADFORD TOPS MARKET. VALUES FIRMLY MAINTAINED. (USITED IRESS ASSOCIATION—BY ELECTKIC TELL' GRAPH—OOPVBIGHT .) LONDON, November 21. Bradford tops values arc firmly maintained, but business is quiet, awaiting the London sales. PRICE OF GOLD.

(T7KITEB PRESS ASSOCIATION—I*Y .'LEOTiUC TELEGEAPn —COFYBIGHT.} LONDON, November 21. Gold (per fine ounce is quoted as follows: £ s. d. November 21st ... 6 5 fi November 19th ... 0 5 0 November 17th ... 6 4 10£ PRICE OF SILVER. (BRITISH OFFICIAL WIMLESS.) (Itcceived November 22nd, 5.5 p.m.) BUGBY, November 21. Silver (pence per ounce) is quoted:— Nov. 20. Nov. 21.' Spot .. .. 181-1G 181-16 Forward .. 18$ 18$ HIGH COMMISSIONER'S REPORT. The Department of Agriculture lias received the following message, dated November 19th, from the High Coniniissioner for New Zealand, London: TALLOW. Mutton—l"'ine, 275; fair to. good, 24s to 2Gs; dark to dull, 21s to 223. lioef—Sweet and-or mixed, 25s to 28s; fair to good, 22s 6d to 21s Gd; dark to dull, 203 6d to 21s Gd. Mixed—Fair to good, 22s Gd to 21s; dark to dull, 19s 6d to 21 a 6d. Gut, etc.—l9s to 21s 6d. HEMI\ Manila—Market steady. Buyers' valuo for "K." grado for December-February shipment, £lfi ss. Output from January Ist to. November 14th, 776,000 bales against 915,000 bales for same period last year. Stocks in the United Kingdom at October 31st, 21,530 bales against 23,874 bales at same time last year. Stacks in Manila at November 14th, 148,000 bales against 125,000 at same timo last year. Sisal —Market quiet at last rates quoted. New Zealand—Market continues dull. Offerings small and buyers not interested. Values nominally unchanged. Stocks in London at October 31st, 76 tons against IS tons at same time last year. EGGS. Market steady during the week, but weaker at the close. English, national pack, 21s 6d to 235; English, ordinary pack, 21s to 22s 6d; Danish, ISs to 23s 6d; Australian, 12s Gd to 14s 6d; New Zealand. 131b to 17lb, per long hundred, 13s to 14s Cd. FARMERS' SALEYARDS. IT. C. Smith reports the following sales at the Formers' Saleyards last week:—Bay geldiog £6, ect harness £2 lis, spring dray £ll 2s 6d, Mack mare £9 ss, bay geldin? £4 ISs, bav mare £3 10s, bay gelding £7, black mare £7 10s, aged sorts up to £2, Jersey heifer £B, Jersey cow £3, Jersey heifer £6 i 101. I