DISTINCTLY BRIGHT OUTLOOK

Dominion, Volume 21, Issue 292, 10 September 1928, Page 11

DISTINCTLY BRIGHT OUTLOOK

BRITISH COMMERCIAL SUMMARY WONDERFUL SHIPBUILDING REVIVAL BUTTER POSITION VERY SOUND The weekly commercial summary from London this morning provides pleasant reading. The most arresting features are the wonderful revival in Britain’s shipbuilding industry, and the soundness of the butter market. (United Press Association.—By Electric Telegraph.—Copyright.) 'Australian Press Association.) (Rec. September 9, 5.5 p.m.) Loudon, September S. Although a glorious summer weather is tempting many city men to prolong their holidays the Stock Exchange is beginning to show renewed signs of activity, and September started with a cheerful tone. Brokers and jobbers apparently anticipate active markets during the coming autumn. Tlie gilt-edged market is firm and unaffected by the unsettled money conditions in New York. Indeed, the market is complaining of a shortage of investment stocks, and new issues would be welcomed not only British or Dominions but also foreign bonds, especially those giving high rates of interest, for which there is a strong demand. Several of these are expected in the near' future. Tlie first has appeared this week in the shape of the Chilean Government’s issue of two millions at 6 per cent, sterling bonds at 954. This gives a flat yield of £6 ss. 7d. per cent., so it is not surprising that it was oversubscribed immediately the lists were opened. Industrial stocks have also shown considerable activity this week, notably the gramophone group and tobacco. Britain Leads in Shipbuilding. Britain’s shipbuilding revival is the subject of an article in the “Statist.” which will be pleasant reading throughout the Empire. The writer points out that in actual volume of work British shipbuilders are building al-most-as many vessels for foreign owners as in pre-war days, and in percentage of total work in hand pre-war figures bn foreign account are exceeded. Our bookings on foreign account for July-August indicate that in the coming winter we shall launch a record percentage if not a record tonnage of boafs for abroad. In other words, we shall have foreign competition well met once more. Within the last eight weeks British shipbuilders have secured contracts from Norway, Sweden, France, Spain, America, Canada, Argentine and Chile. Competition from America, which was our greatest menace between 1916 and 1920, has ceased to exist. Continental competition is met to the extent that whereas in' 1923-1925 German and Dutch builders were constructing ships for British owners and the Dutch were capturing many repair jobs from us, no British owners are now having a big boat built abroad and our ship-repairers, like our builders, are beating their competitors both in time and price. Britain is now building twenty tmes as many ocean-going steamers as the United States and about fifty per cent, more than all the Continental countries put together. Clyde firms have booked more orders than any during any month since 1920. One huge yard at Belfast is working at capacity, and the other there, which has been closed, has got to work again. All this is undoubtedly in consequence of the shipbuilding industry having revised its labour conditions drastically, cutting down expenses, and greatly speeding up the work. It has reformed itself without ostentation or Government assistance. Butter Outlook. The butter outlook appears satisfactory and many traders anticipate, prices will further advance before tlie new season’s Australian and New Zealand commences to arrive. The consumptive demand throughout the country is well maintained, although retail prices are high, and it is certain that retailers must have been drawing pretty heavily on stocks which they purchased a few weeks ago. Production in Europe continues steadily to decline, and there is no great accumulation of stocks in Cold store, so there seems ample ground for taking an optimistic view of the position. BOOM IN WALL STREET (Australian Press Association.) New York, September 7. Stocks soared to-day tinder the pressure of heavy buying, 'influenced by only a slight increase in brokers’ loans for' the past week, coupled with the easier tone of the money market. Mailorder stocks led the field, which experienced nearly a twenty-point rise in less than half-a-hour. United States Steel Common reached new 1928 figures, there being a bid at 15S at one point, while several additional steels sustained share rises. Considerable confusion was caused by the inability of the ticker to keep pace with the trading and it ran 35 minutes behind during the heaviest rush. The total trading was nearly five million shares. Call money was renewed at 74 per cent.