TIDE OF RECOVERY

Dominion, Volume 29, Issue 117, 11 February 1936, Page 9

TIDE OF RECOVERY

Boom Proportions In Britain BIG BUILDING PLANS State of Primary Produce Markets By Telegraph.—Press Assn.— Copyright. London, February 9. The "Daily Mail” predicts that the recovery which began In 1934, mounting steadily last year to a boom, will continue. The paper adds: "Overseas trade figures In 1935 compared well with the pre-depression years, while industrial profits were about one-third higher than in 1934. Dividends on these profits are circulating a new stream «£ money which will swell the funds amassed by the five years’ prohibition of foreign lending for investment in new enterprises. “Building projects have been planned amounting to £30,000,000, including aircraft motor factories, hospitals and sanatoria, while the raising of the school age will necessitate more schools. The Government also will shortly pay out £3,000,000 or £4,000,000 weekly for increased armaments, which will r largely be returnable through various taxes, relieving the deadweight on the taxpayer.” There has not been an auction of Australian or New Zealand tallow for a month owing to insufficient supplies. The Smithfield strike has scarcely affected Australian and New Zealand meat supplies. It Is possible that the result of the dispute may give an impetus to the movement toward decentralisation of London meat marketing. Limited supplies of New Zealand lamb met a ready sale in the past few weeks, and consequently there is no accumulation of ■ stocks. Australian ‘meats are in heavy supply and were sold on a lower basis in order to lighten stocks before heavy New Zealand shipments arrive. The tone of the market, however, is firm, and stocks afloat and in store show a slight reduction compared with last year. The improvement in the mutton market was not maintained owing to a falling-off In consumption. The new season’s arrivals are larger than was anticipated. Some traders, however, expect better prices in the next few weeks. The beef market is suffering from disorganisation due to the King’s death and to the strike. New Zealand chilled beef is of excellent quality, but Australian supplies unfortunately continue to be poor. The butter market continues to be very peculiar, fluctuating almost hourly. Views as to the future are mixed. Quite a few anticipate higher prices, especially as the Continental market is firmer. Stocks continue to be well on the move, and some of the larger operators are pegging the market. The cheese market is slow. FEATURE OF THE WEEK Sharp Decline of Dollar London, February 9. The outstanding feature of the commercial week has been the decline of the dollar, which almost reached the proportions of a slump. Only the intervention of the Exchange Equalisation Fund prevented a sharper fall. A curious feature of the movement has been the maintenance of the forward premium despite the adverse pressure of spot dollars, indicating that big Interests are not concerned. The present fluctuations in selling are apparently coming from people who are excited about the possible inflationary implications of recent American legislation. Well-informed persons discount the alarmist talk and consider there is little possibility of President Roosevelt departing from the present 59 per cent, gold dollar system. There was a quiet week on the Stock Exchange, and few are sorry, as a feeling was growing that the pace was rather hot. Gilt-edged securities continue to be dull, but the prospect of a Budget surplus has strengthened New Zealand stocks.