MARKETS SUBDUED

Evening Star, Issue 22195, 25 November 1935, Page 11

MARKETS SUBDUED

LONDON STOCK EXCHANGE DULL ADVERSE HOME AND FOREIGN FACTORS BUTTER PRICES STEADY AT LOWER LEVEL Press A ssaciatioi. —By Telegraph Copyright LONDON, November 23. (Received November 25, at 9 a.m.) The Stock Exchange bad a somewhat disappointing week. Tho return of the National Government induced high hopes that 'there would bo a burst of activity from the investing public, but this has not materialised, for various adverse factors have arisen to render caution necessary. First came the decision of tho miners in favour of a strike, which, if carried out, will mean serious dislocation of trade; then the imposition of the first sanctions against Italy was followed •by Signor Mussolini's threat of reprisals. Additional unfavourable incidents were the development of fresh friction between .Tapan and China, the disturbances in Egypt, and last but not least France’s financial troubles. In. lace of these disturbing elements, it was -not surprising that tho 'stock markets'became subdued, and with few buyers operating values generally show a shrinkage, British funds’ falls on the week varying from one-eighth to three-quarters. One satisfactory feature is the strength of Dominion stocks, especially Australian, all of which had fully maintained their position, some even advancing.

The current issue of the ‘ Westminster Hank Review,’ contrasts the stability of prices in' Britain in the last four years with fluctuations in other leading countries. The range of movements of wholesale prices in the Board of Trade index since 1931 when Britain left the gold standard has not exceeded 8 per> cent.,- whereas over the same period comparable index 'prices in the United States show a range of 29 per cent., and France of 32. An important result of the relative stability of Britain’s cost of living has been freedom from serious Labour disputes. The ‘Review’ concludes: “Conditions to-day are fundamentally different from 1931., Then prices of moat commodities were weak; now the tone is much stronger, stocks having been reduced and the demand having expanded. So far appreciation of commodity values has had little to do with Government policy., but the maintenance of ample supplies of cheap money has resulted in a substantial expansion in deposits in commercial banks. Bases of very considerable expansions in credit have thus been created, and if commercial confidence can rid itself of the economic and political fears which still cramp it so that more use may be made of the credit available prices are likely to be materially affected, hence any disturbance of the relative stability in prices which we have enjoyed for four years is much more likely to be in the nature of a rise than a fall.” BUTTER. The butter market is steady at the lower level of prices recently estab lished, and with the consumptive demand improving as the result of lower retail prices, importers are hopeful that the position has been stabilised. Germany continues to take good quantities of Danish and other Scandinavian butter, and there is talk of the United States coming on to this market again for supplies, so the outlook appears fairly satisfactory, but doriiinions’ butter may shortly meet considerable competition from the ■ Home-grown article. -The Milk Marketing Board is endeavouring to utilise the. surplus milk by establishing butter factories throughout the United Kingdom. The first is now under construction in Cornwall, and other sites are under consideration. According to the newspaper ‘ Grocer,’ the factories will be able to deal with approximately 30,000 gallons daily. By this scheme, which is in addition to the proposal to give farmhouse butter makers financial assistance, the board hopes greatly to increase the butter output. Hitherto farmers generally have considered buttermaking the least profitable market for milk.