FINANCE AND TRADE

Evening Star, Issue 21091, 2 May 1932, Page 7

FINANCE AND TRADE

BRITAIN'S FORTNIGHTLY REVIEW STOCK EXCHANGE DEPRESSED CONDITIONS IN EUROPE NOT HELPFUL Pres* Association —By Telegraph—Copyright. LONDON, April 30. (Received May 2, at 9 a.in.) The Stock Exchange has had a depressing fortnight, for with the exception of the gilt-edged section and gold mines the weakness has been general, and what little business has been done has been at lower prices. As one financial expert puts it: “The change which has taken place in sentiment is not due to any deterioration of the domestic situation, but to the course of events abroad—the increasingly serious financial situation of Central Europe, Hitler’s advance, the failure of the Disarmament Conference, and the continued fall in world prices.” In this state of affairs the firmness of giltedged securities is a matter for congratulation. It is also satisfactory to note that Australian stocks are gradually recovering from the set-back experienced when it was rumoured that the exchange rate might go to £l4O. The Treasury’s new issue of bonds is favourable received, and is likely to be well subscribed. It is noteworthy that for the first time since the war the Government is able to offer a nominally 3 per cent, bond, though the actual yield will bo about 31 per cent. The Treasury’s object in making this offer is, according to the ‘ Financial News,’ to ensure tho absolute solidity and strength of the London money market. It is understood that the proceeds of this issue will bo used partly to pay off the £64,5UU,000 4 per cent. Treasury bonds duo in 1933, and partly to reduce the outstanding volume of Treasury bills. On the subject of tho continuance of low money' rates, eminent authorities have predicted rates as low as 3i per cent, within a year for long-term Government securities, and all the indications point at least to rates distinctly lower than those now ruling. In these obscure waters the new issue easts a sounding line. By the mere fact of its carrying only 3 per cent, nominal interest it suggests a lower yield in Government stocks. The whole operation mtist be considered as skilful. STATE OF TRADE A writer in tho ‘ Economist’s ’ trade review finds the reports of the state of the Home trade once again conflicting, and says that in many respects there is evidence of a definite improvement. Most of tho tangible indications unite in suggesting that trade is definitely more active, and up to a point this is confirmed by reports from separate industries, yet it is difficult to find any agreement that there has been a genuine improvement, and in some respects the outlook has become a trifle worse. The appreciation of sterling last month, coincident with further depression in gold prices, caused the wholesale prices in many markets to fall heavily. There was also the disappointment that the Budget showed no prospect of an early lightening of the burden of taxation. Many industrialists hold that no revival of business is possible while taxation remains at its present grievous level. EMPIRE PARK Valuable bints regarding the pork trade are contained in a letter to tho Canterbury Chamber of Commereg by Mr Jos. Swain, of Smithfield, whose firm is actively pushing Empire pork, and is again holding a competition at Christmas time. Mr Swain points out that porkers weighing from 601 b to 801 b made an average price of iid to Id per lb over heavier grades. He thinks the difference is likely to become greater as the market develops. Although there is always a good market for large porkers, the most profitable carcass is the lean one, with about fiveeighths of an inch of iat on tho back. Mr Swain adds that, although Empire pigs have not recently returned any profit when shipped, they maintained a consistently high price here m comparison with world prices for pigs, also imported lamb, 'mutton, and beef. At the present moment prites are firming, and look like being higher for the next six months than for the last three months.