PRICES RISING

Evening Star, Issue 21543, 16 October 1933, Page 9

PRICES RISING

BUOYANT BRITISH MARKETS STOCK EXCHANGE CHEERFUL Press Association—By Telegraph—Copyright LONDON, October 14. The Stock Exchange continues brisk and cheerful. The gilt-edged section is firm, the successful flotations of three large dominion loans in a fortnight haring had an excellent effect, but the industrial market is showing the greatest strength. This is becoming more pronounced and more remarkable when the sharpness of the rise in prices in recent months is considered. According to the share barometer of one financial newspaper which takes the basic figure of 100 as representing the average values for 1930, British industrial stocks now stand at 100.6, compared with 79.4 at midSeptember, 1932, and 63.0 at mid-Sep-tember, 1931. DEPRESSION PASSING.

The speeches of the Chancellor of tho Exchequer and other Ministers all indicate that the long period of depression is now passing. The excellent- revenue returns, which encourage a hope of reduced taxation, good Board of Trade returns, a reduction in unemployment, and an improvement in the railway tariffs are all factors contributing to make investors confident. The unemployment figures are particularly encouraging. The increase in some of the staple industries is substantial, notably the woollen industry. Since January the number of unemployed in the woollen trade has been reduced by 52 per cent., in hosiery by 50 per cent., in metal manufacturing trades 30 per cent., in iron and steel trades 30 per cent., and in general engineering 20 per cent. THE WHEAT MARKET.

The persistent sagging of wheat prices is disheartening to traders, who see no signs of recovery. A writer in the ‘ Evening Standard,’ discussing the question, says: “The position at the moment appears to be that the granaries are full, but millers are amply stocked. The crops are good, especially in Europe. As a result it is estimated that Europe will require to import only 257,000,000. bushels, against 430,000,000 last year, consequently shipments from North America are becoming less.” The statement that the United States Treasury has allocated money to subsidise the export of 35,000,000 bushels to the Orient does not help matters much. It merely means that a corresponding amount of Australian wheat will be diverted from the Orient to European markets, but the principal adverse influence at the moment is the abundance of wheat available. It is estimated that thp surplus of exporting countries for the season 3933-34 is 915,000,000 bushels, while the requirements bf importers in the same period is estimated at not more than 552,000,000 bushels. Those 1 figures explain the present apathy of the market. AUSTRALIAN PRUNES. The latest Australian food product to make its appearance on the British markets is prunes from New South Wales. A parcel carried in a cool chamber has just ari’ived in excellent condition, and met a ready market. The. prunes were packed in two different containers—2Blb boxes and 71b tins. The latter had a very attractive appearance, and sold readily. Importers are hopeful of establishing a good trade if the quality of the present parcel is maintained. The fruit is duty free, whereas foreign prunes pay 10s 6d per cwt. BUTTER, CHEESE, AND EGGS. Lack of inquiry was responsible for weakening in Australia and New Zealand butter. This is somewhat surprising in a market which is attempting to hold the price of the finest grades. Little speculative demand for forward butter is expected. Cheese is also difficult. The withdrawal of speculative support in the market caused further weakness. Eggs are easier, but a decline in home and Danish production is anticipated, resulting in a wider distribution of colonial eggs.