THE BRITISH MARKETS

Evening Star, Issue 20986, 28 December 1931, Page 7

THE BRITISH MARKETS

END OF THE YEAR LONDON’S REPORT Press Association—By Telegraph—Copyright, LONDON, December 26. The Stock Exchange broke up for the holidays in a fairly cheerful mood, for though business in all sections has been small there is a marked improvement in British funds, which is chiefly due to the firmness of sterling. The result of the elections has had little effect on the prices of Australian stocks, for they had recovered considerably before polling took place, the Exchange having anticipated a Nationalist success, though the size of the majority exceeded even the most sanguine expectation. Financial writers generally forecast an improvement after the turn of the year, and many are drawing attention to the steady recovery from a precarious position, publishing tables to show how a number of Commonwealth stocks have improved from £2O to £2B from the lowest mark touched in 1931. Attention is also called to the possibilities of profitable buying of Australian Bank shares, several pf which have already risen well. The writers are arguing that now that Australia has a sound Government companies connected with finance are likely to be the first to benefit from the change in politics. THE ‘ECONOMIST’S’ REVIEW. The ‘ Economist’s ’ trade review is again somewhat depressing. It says:— “ Three months have elapsed since the British suspension of gold payments, and it is becoming clear that the resultant stimulant to British industry is being neutralised by the curtailment of the volume of world trade, and no real permanent benefit has yet materialised. The recent improvement in the iron and steel industry was only temporary, and business is slipping back to the summer’s low level. The absence of any demand for steel products and the disorganisation of the Continental industry render progress impossible. The cotton trade has lost part of its re-cently-gained ground, the Labour difficulties at home, the uncertain markets abroad, and the Japanese suspension of tho gold standard all being hindrances to further recovery. The new British import duties have damped down the foreign demand for raw material. But there are some brighter features, and the following industries report progress: —Locomotive and motor building, and the linen and textile industries. The unemployment returns for November show improvements in tho coal mining, glass, tin plate, general engineering, textiles, leather, and paper industries, and in the dock harbour services and the distribution trades. Against these setbacks are recorded in the iron and steel industries, and in shipbuilding, building, and contracting.” REASSURING INDICATION. A cheering feature which tho ‘ Economist ’ does not record is the increasing demand for factory sites in Great Britain, which can only be regarded as indicating an improvement in business. The London Chamber of Commerce reports having received numerous inquiries, aud a firm of estate agents says that in 1931 it has received a far greater demand for factories than in previous years, and the inquiries have almost trebled in the last three weeks, partly owing to the suspension of the gold standard and the possibilities of new tariffs. The inquiries have come from Home, Continental, and American manufacturers. DOMINION’S FOOD PRODUCTS. The close of the year sees the markets for most of tho Australian and New Zealand food products depressed, and the prices for meat, butter, cheese, and eggs are all disappointingly low. The butter decline is not surprising, for tho total imports for the eleven months of 1931 were no less than 55,795 tons above the corresponding period of 1930. Weddel’s report, in discussing the decline of 20s to 22s a cwt since October 2, says: “Various factors are responsible for this, an outstanding one being that Denmark, whence comes about one-third of our supplies, abandoned the gold standard rather earlier than was expected. Other factors are tho low offers for forward shipment from New Zealand and Australia, particularly the latter; pressure on some weaker holders to sell current arrivals; and the knowledge throughout the trade that the makes of both Australia and New Zealand have been comparatively heavy, hence the bearish position of the market here.”