GOOD NEWS

Gisborne Times, Volume LXXIII, Issue 11956, 29 May 1933, Page 5

GOOD NEWS

BRITISH MARKETS MORE OHEER- - ' •• FUL • • STOCK EXCHANGE STIMULATED

(U.P.A. by Elec. Tel, Copyright) (Received May 28, 6,-30 p.m.) LONDON, May 27

Tho decision by tho United States to abandon the gold stalldavit and permit' -war debts to bo paid in paper currency had an instant stimulating effect on our Stock Exchange. There was a marked revival of gilt-edged' stocks, which in the past month, have been steadily declining. Yesterday, they iworc 'very weak, owing to the low price it! which the weekly issue of the 2i per cent, conversion was allotted, but this morning's news brought a rapid recovery, some British funds advancing over one per cent. Earlier in the week there had keen marked activity in industrials, duo partly, as the Statist says, to the continued improvement of commodity prices, which have derived their main impulse

from developpiorrf s 'i n United States and speculative anticipations regarding the outcome of the World Economic Conference' and partly also to the growth of speculative interest directly duo to concrete evidence of a revival in the large number of domestic Industries, which was chiefly responsible for a. return of small investors to the miscellaneous markets.

Discussing the possibilites of the forthcomug Autralian conversion operations, the Investors’ Chronicle

says:— "British investors must realise what the conversion problem 'involves. If through the postjpncment of the date of conversion they should miss the tide, Australia will have a legitimate grievance and the Lang party will have a first-class subject for agitation. If the Lang party were to return, on a wave ot resentment it would not be measured by quarter points but by something very much more sweeping.” The Economist's report on the stale of trade is again optimistic. Tire writer savs:—

\ noticeable change for the bet-'

ter has occurred in the general tone

of industrial conditions both at Home and abroad. There is more than

politics behind the recovery so far as this country is concerned. The improvement need not bp ascribed

only as due io seasonal causes, es-

pecially as in past years May witnessed a. recession and nofc an expansion of trade. Reports from in-

dustries show a general but slight improvement in forward business. The Oral trade i,s .more hopeful, even though prompt business is dull. There is a much better tone in heavy industries, accompanied by receipt of fresh orders for certain

sections. Among the textile trade woo] and jute are much better and linen and -rayon have also improved. In the cotton industry, the rise in prices has proved a disinc-t stimulus, but the Indian market is

still over-burdened with heavy stocks. Pottery, leather, boots and shoes are better