THE BRITISH MARKETS

Evening Star, Issue 21009, 25 January 1932, Page 9

THE BRITISH MARKETS

ENCOURAGING SIGNS IMPROVEMENT OH STOCK EXCHANGE Press Association —By Telegraph Copyright. LONDON, January 23. The improved tone on the Stock Exchange which marked the opening of the year has been maintained, and prices have hardened in most sections. Several factors have contributed to make investors more confident, the most notable being the Government’s announcement of the huge income tax payments received during the first sixteen days of January. Another factory feature has been the knowledge that Continental countries are buying considerable quantities of stocks here. . The general improvement on , Wall street has also had a good effect, and yet another good point is the possibility of a reduction in the bank rate at a not-far-distant date. Gilt-edged stocks led the way in the upward movement, Australia being especially strong. New Zealands, which hitherto have been rather out of favour, are showing large advances compared with a fortnight ago. It is generally thought that the improvement is likely to continue, though maybe profit taking may cause occasional setbacks. LOAN FOR MAURITIUS. , An interesting event has been the issue of the first colonial loan for many months. The Mauritius Government loan of £500,00P 5 per cent., 1951-71, 98J, proved so attractive that it was subscribed pearly four times, being quoted at li premium. SPURT IN YORKSHIRE WOOL TRADE. ; The wool and textile revival in Yorkshire is spreading. According to the ‘ Telegraph’s ’ Bradford correspondent, there is great activity in the West Riding mills, which are engaged in a big effort to supply the home market with dress goods and which were formerly obtained by the advantageously placed Continental competitor. Such is the revolution that has occurred in production for the home market, consequent on our abandoning the gold standard and the imposition c>f import duties, that some of the displaced foreign competitors are making inquiries for either mills or sites in the Bradford district. French and German visitors are exploring the possibilities : of starting the manufacture of light dress goods. A German firm wishes to set up a clothing factory, and a Swiss concern is anxious to make art. silks in the Huddersfield locality. A Dutch undertaking wants a factory near Batley for the manufacture of carpets, curtains, etc, BUTTER. Germany’s proposal to tax butter imports caused a slight weakness to develop in the market, but prices have' since recovered about Is. Importers are still uncertain about what exactly is going to happen, but the general impression is that though Germany’s action may cause a diversion of large quantities of Continental butters to Great Britain this is not likely to happen for some months. Eight butter exporting countries, including Denmark, Holland, and Finland, have between them still 40,000 tons to send to Germany on the old basis of duty, and it will be several months before this is> absorbed. With regard to the question of imposing a tariff on butter; which'has been suggested as the best means of preventing unduly heavy importations, it may be pointed out that the Government’s tariff proposals are understood to exclude food. The suggestion is made that the quota system might he applied to butter imports. EGGS. The Australian egg season has practically finished, for though a few parcels have still to arrive they are very * small. Unfortunately the market is most depressed, for, owing to the phenomenally mild weather here and on the Continent, production has been . maintained, and supplies are very heavy. Consequently the best prices obtainable for Australians are 10s for fifteens and 10s 6d for sixteens, but, although the present values are the lowest of the season, Australian shippers have not done so badly, thanks to the weeks when sixteens were realising about 16s. The average results for the season are expected to be about 12s for fourteens, 13s for fifteens, and 14s for sixteens.. When the exchange premium is added to those prices the position must be regarded as satisfactory.