FINANCE AND TRADE

Evening Star, Issue 22329, 4 May 1936, Page 9

FINANCE AND TRADE

COMMENT FROM LONDON CURRENCIES UNDER FIRE LITTLE OR NO CHANGE IN WOOL Press Association—By Telegraph—Copyright LONDON, May 3. (Received May 4, at 11 a.m.) Tlie City is now wondering whether the franc will much longer withstand the attacks of the heavy selling of all securities, especially by the Government and the Bank of France. The flight of capital is so marked that French financial circles consider restrictions on it probable. The Swiss and German currencies are also under fire. Tho former unaccountably slumped in mid-week, recovering at the week-end, as the Swiss financial situation is improving and the Budget is balanced. The selling is probably due to operators fearing that, if the French franc collapsed, the Swiss would follow. POSITION IN GERMANY. Graver fears are entertained for the reichsmarks, which are only fictionally on gold. General Goering’s appointment as arbiter on the Foreign Exchange seems to make devaluation inevitable. The City is anxiously awaiting the development of relations between General Goering and Dr Schacht, who are known to differ on many points. If Dr Schacht is set aside, it will gravely undermine the City’s confidence in Germany. THE STOCK MARKETS. The stock markets, which weathered tho Budget, were unable to withstand the combined effects of the international situation ajid the slump in Wall Sti'eet. Foreign bonds are especially weak, as investors are only beginning to realise tho full implications of the central European uncertainties. RUBBER. Rubber shares are weaker, on tbe Committee’s unexpected quota decisision aimed at speculators. The Committee desires a stable market. GOLD, Gold shares immune from the general weakness, and Kaffirs sharply advanced. WOOL. Responsible traders consider that little or no change is likely in the wool sales. If there is any, it may bo in the sellers’ favour. They base their view on the belief that, although the stocks of many firms are long there is not yet a general shortage. The small quantities available should, however, maintain the price at March levels. Commodities generally arc dull, for the same reasons as the stock markets. BUTTER. Butter is irregular and the fluctuations are likely to continue. APPLES. Apples are meeting with less American competition, but there are considerable quantities of South African apples of excellent quality. DOMINION CREDIT HIGH. Financial papers commend the New Zealand conversion, pointing out that the credit of "the Dominion is deservedly high.