INSTANT EFFECT

Evening Post, Volume CXV, Issue 124, 29 May 1933, Page 7

INSTANT EFFECT

MARKED REVIVAL IN STOCKS

INDUSTRIAL OUTLOOK

LONDON, May 27. The decision of the United States to abandon the gold standard and permit war debts to be paid in paper currency had an instant stimulating effect on the London Stock Exchange. There was a marked revival in giltedged stocks which for the past month have been steadily declining. Yesterday they were very weak owing to the low price at which the weekly issue of the 2J per cent, conversion loan was allotted, but this morning's news brought a rapid recovery, some British funds advancing over 1 per cent. Earlier in the week there was marked activity in industrials, due partly, as the "Statist" says, to the continued improvement in commodity prices, which derived its main impulse from developments in the United States, and speculative anticipations regarding the outcome of the World Economic Conference. It was partly also due to the growth of speculative interest directly arising from concrete evidence of the revival,of a large number of domestic industries which was chiefly responsible for the return of small investors to the miscellaneous market. The "Economist's" report on the state of trade is again optimistic. The writer says that a noticeable change for the better occurred in the general tone of industrial conditions both at Home and abroad. There was more than politics behind the recovery so far as this country was concerned.'The improvement need not be ascribed only to seasonal causes, especially as the past year witnessed a recession, not an expansion of trade. Boports from industries show a general slight improvement. Forward business in the coal trade appears more hopeful, even though prompt business is dull. There is a much better tone in the heavy industries accompanied by receipt of fresh orders in certain sections among the textile trades. Wool and jute are much better. Linen and rayon have also improved. In the cotton industry the rise in prices proved a distinct stimulus, but the Indian market is still overburdened with heavy stocks. Pottery, leather, and boots and shoes are all better.