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Evening Star, Issue 20655, 1 December 1930, Page 13

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THE FORTNIGHTLY REVIEW WOOL POSITION DISCUSSED DECLINE IN BUTTER PRICES. Press Association—By Telegraph—Copyright. LONDON, November 29. Dullness reigns over the Stock Exchange, and business in most sections is on a small scale, but prices generally are -maintained. The outflow of gold to France has been temporarily arrested. There is no improvement in British funds, but these remain in good demand. Further evidence that there is plenty of money available for investment may be found in the heavy oversubscription to the issue by the Central Electricity Board of £6,000,000 of 4£ per cent, stock at 95£. Although this it not trustees stock and yields less than 6|, it was subscribed more than tenfold in a few minutes, and applicants only received about 6 or 7 >per cent, of the amount applied for. The action of the directors of the London, Midland, and Scottish Railway in reducing their fees by 25 per cent, is likely to be followed, though perhaps not to the same extent, by three other great railway groups, which will submit proposals regarding directors’ fees at meetings early in 1931, Although the actual saving in the case of - the L.M.S. only amounts to £8,750 a year, and if the other groups also reduce by 25 per cent., the total reduction will only be about £25,000. the step meets with general public approval, for it is taken as an indication that the railway economies will be from top to bottom, and that lowly-paid workers will not be the only sufferers. SHIPYARD CLOSING DOWN. This Christmas is not likely to be a merry ono for a large number of workers in Belfast, for Workman, Clark, Ltd., announce the closing down of their great shipyard, there for two months from December 20. They are hopeful that the point of depression has now been passed, and that, with the turn of the year, freight and markets and shipping generally will show much improvement, and that not only will the vessels in hand be required immediately, but fresh orders will ho forthcoming. WOOL. Regarding the wool position, the Yorkshire ‘ Observer’s ’ correspondent says that a hardening tendency was noticed at the London sales. Merinos are altogether in a steadier condition than cross-breds, and the cheapness of finer wools has. so increased the consumptive demand and the actual manufacturing output that renewed vitality has been created in this section of tho industry. Confidence has returned and values have been established on a firmer foundation, but there is a weakness in tho cross-bred section, which was drastically demonstrated when the New Zealand "sales opened in Auckland. Opinion at Bradford, however, is consolidated around the idea that the improvement will eventually be general. It is argued, apparently with some reasonable justification, that provided tho consumption of merinos continues the finer grades of wool will appreciate, and as a necessary corrective to the excessive rise ir, consumption will spread to those lower down on the scale. BUTTER AND CHEESE. The butter market has gone from bad to worse. Prices declined about 6s this week, due to heavy arrivals, both actual and prospective, widely has made holders nervous and inclined to press sales of both cold stored stocks and fresh landed goods. Consumption is well maintained, thanks to the low retail prices, but it docs not show expansion. Cheese also has an unsatisfactory market, and although tho price has been lowered about 5s the demand is slow. Canada is offering the remainder of its make for shipment at low prices, so there seems to bo no prospect of any improvement in New Zealand and Australia. / TRADE GENERALLY. The ‘Economist’s’ monthly review says: “ Current indications of tho state of trade have lately become a. little more conflicting than earlier in the autumn. This, on tho whole, is a good, sign, for it means that one or two sporadic rays of light have begun to penetrate the general depression. _ To summarise the good and the bad signs, among the former some slight improvement over the previous months is shown by the October trade returns, the greater stability of some wholesale prices since October, and the improvement in tone and employment in most of the textile trade. The bad sign? include the poor October iron and steel production figures, tho increase ip unemployment in the heavy industries,’ and the note of uncertainty oyor_ tho coal and railway wage negotiations. To these must bo added such adverse foreign developments as tho recent French and American bank failures* and tho further break in wheat prices.