MONEY AND MARKETS

Evening Star, Issue 21519, 18 September 1933, Page 9

MONEY AND MARKETS

HOMELAND COMMERCIAL SUMMARY BUTTER PROSPECTS BRIGHTER Press Association—By Telegraph—Copyright. LONDON, September 16. Business on the Stock Exchange continues satisfactory in all departments, industrial stocks especially being in demand. As a result of the favourable trade returns there is a decrease in the number of unemployed, which is naturally taken to indicate a revival in trade. There has been some irregularity iu gold mining shares, which have fluctuated with the price of metal. Giltedged stocks are steady. The quick success of the Commonwealth loan had a good influence on the whole group, and caused a general marking up of Australians, with Commonwealth 5 per cent., 1945-75, touching £llO. Australia received very good Press comment regarding its loan, newspapers all over the country referring to it as eloquent testimony of the wonderful recovery made in the last two years. The ‘Morning Post’ says: “It is only fair to recognise that those responsible exercised great skill, judging almost exactly the right price at which to issue. Even % per cent, might have made all the difference between success and comparative failure, Mr Stanley Bruce’s resourcefulness and energy were largely responsible for the success of the loan.” GENERAL TRADE POSITION. Discussing the trad© position, the financial editor of the ‘ Spectator ’ writes: “ The outlook is moderately hopeful. At the same time two facts must be home in mind which may well restrain any excessive optimism. Tho first is that some part of trade recovery is due to the depression having gone to extreme lengths, so that a reaction was overdue. When the rise in prices began it revealed in many directions the great shortness of stocks held by retailers, and it has been the filling up of those stocks which in a large measure has been responsible for some of the improvement in commodity prices'. It now remains to be seen whether an adequate increase in the public’s consuming power will follow this replenishment of stocks. The other point calling for consideration is the uncertainty in regard to tho outcome of the experiment of the United States. Should it succeed the influence in stimulating trade activity elsewhere may be considerable, even if it also heralds sopie great socialisation in business activities. If, however, the efforts that are being made in the United States are not successful they we must look for some kind of reaction in trade recovery in many parts of the world, though whether it would be very severe must depend upon the extent that President Roosevelt’s plan has been supported by the actual inflation of credit currency.” BUTTER MARKET. The recent improvement in the butter trade has been well maintained, and traders are hopeful regarding the future prospects, for the statistical position looks better than for a long time. Not only are stocks in cold store being substantially reduced, but the quantities afloat from New Zealand, Australia, and Argentina are 180,000 boxes less than for the corresponding period of 1933. As the newspaper ‘ Grocer ’ points out, owing to the long spell of hot, dry weather all the European butter-pro-ducing countries’ production is rapidly declining. Germany, France, Belgium, Italy, Switzerland, and other countries will ha\ : to increase their quotas almost immediately, and undoubtedly must import butter much earlier this year than last, as they have very small reserve stocks. EGGS. Although the hot weather has proved beneficial to the butter trade it has had the contrary effect on eggs, tho production of which has been stimulated, and this has caused a smaller demand for Australian, which have been somewhat difficult to sell.