THE HOME MARKETS

Evening Star, Issue 21719, 14 May 1934, Page 9

THE HOME MARKETS

LONDON’S FORTNIGHTLY REPORT WOOL OUTLOOK SATISFACTORY BUTTER POSITION IMPROVED Press Association—By Telegraph—Copyright LONDON, May 12. (Received May 13, at 8.5 a.in.) After a dull fortnight mast sections' ol the Stock Exchange arc beginning to show a little more activity. A steadier tone has developed in British funds, which have been inclined to give way somewhat, though dominion stocks, particularly Australian, have held their ground well. There was a boom in rubber shares on the announcement that the output of the world was to be restricted, and many advanced sharply, but when the details were published and speculators found that reduction would be gradual, there was an immediate reaction on the price of the commodity, and the boom in shares quickly ended. Other industrial stocks have been moderately active, with some buying of textiles. Australian mines continue to receive good support. WOOL. The general opinion of wool traders is that, despite the decline in values, there is no ground for pessimism. The Jacomb Hoare Co.’s circular says that the quiet period overshadowing the trade is entirely of political origin. There is no evidence anywhere that the pressure to sell is due to finance; indeed, the resistance to lowering prices in the consuming centres has been remarkable for its strength in the face of so many bear features. Machinery may not be as fully occupied on Botanys as in the period from October to January, but the consumption is satisfactory. The interval between this and the next, series on July 3, is a long one, and will give little opportunity of buying overseas. Indeed the stocks held in the consuming centres must tend to diminish and cannot be replaced before next season. H. Dawson and Sons write that, taking a broad view of outstanding facts, one can reasonably hope for a fairly stable level in values. Any revival of new business in Yorkshire, France, or the United States, together with the lifting of the embargo by Germany and a settlement of the Verviors strike, might easily initiate a period of inflation. The obvious deduction is that the pessimism which has prevailed at Bradford and elsewhere, due to many restrictions and adverse influences, cannot be justified by the statistical position of the raw material; consequently, despite the abnormal combination of disturbing factors, there is a strong tone of confidence in wool values amongst that section of the trade most closely in touch with the commodity. ASSISTANCE TO SHIPPING. Discussing the need for Government assistance to shipping at a meeting of the British Steamship Company, Mr Edmund Watts (the chairman) mentioned forty countries which had “ an advantage over ” Britain, either by assisting their shipping with reservations on trade, by direct or indirect subsidies, or they can undercut Britain owing to a low standard of living and cheap manning. Some have an advantage under more than one of these headings. On the other hand, only twelve countries compete with Britain on equal terms. Of these only one is eminent in shipping—namely, Norway.” Mr Watts suggested that the Government should give the shipowners relief and also apply the enormous resources of the Empire as the world’s greatest market, and insist that the British mercantile marine be employed in carrying British purchases, and even go a step further and require those numerous countries having trade balances with Britain in their favour to rectify those balances by employing British ships. He said he was convinced that if the Government energetically pursued a navigational policy dictated by these considerations they could hope for a revival of British shipping on a sound commercial basis. BUTTER. Although the arrivals of butter continue heavy, and the stocks in cold store at the end of April exceeded 1,000,000 boxes, the consumptive demand is so good that prices in the last month have risen about 5s per cwt. The position from the sellers’ viewpoint looks more hopeful than for a long time past. The warm weather has given consumption a great fillip, and the demand is expected to continue throughout the summer. One contributory factor is the increases in the sales of ice cream. A firm of manufacturers employing men on tricycles retailing ices in the'streets, reports that yesterday’s sales rose sixfold, and the sales of ices by big firms and restaurants rose 80 per cent. The ice cream makers purchase large quantities of Australian and New Zealand butter, which they use in an emulsified form instead of cream.