BRITISH MARKETS

Gisborne Times, Volume LXXXIII, Issue 12751, 6 January 1936, Page 5

BRITISH MARKETS

LAST YEAR EXCEEDS 1929 LEVELS

WILL CHEAP MONEY CONTINUE?

ITALY FACING BANKRUPTCY’

(IT.P.A. by Elec. Tel. Copyright) (Received -Tan. 5, 6-30 p.m.) LONDON. Jan. 4.

The markets entered the new year cheerfully, fortified with the most pleasant recollections of 193-5, in which industrial activity shook off all hesitancy and proceeded To surpass the 1929 high levels. A total of 340,000 more persons were employed in building construction and new records were created in tlie steel industry. which was almost embarrassed by the new business towards the end'of the year. The volume of transactions on the Stock Exchange was about tlie same as in 1934, Governments wore irregular and fell almost uninterruptedly, for tlie first nine months steeply, but only partially recovered thereafter. The movements do not offer conclusive evidence of future cheap money, as the recent firmness is largely due to technical considerations. The general opinion of oiiy businessmen is that cheap money has reached its peak. The oil companies had the most profitable year since 1930. Non-ferrous metals were sounder all round. Rubber was disappointing.

New capital issues were almost three-quarters of those in 1929. Empire borrowing was disappointingly low. only £15,C00,000 as compared with £29.000,000 and £63,000,000 in 1923. Foreign lending shrunk to vanishing point, owing to tlie continuance of the Treasury embargo. The immediate outlook appears bright- Reports of the bank chairman are certain to- be favorable. Further advances in industrials are probable within the next few weeks. Long term prospects, are obscure. The European situation is calsing the gravest- anxiety. Italy cannot escape bankruptcy whatever the Abyssinian issue. Germany’s condition is equally desperate. The increase in the number of unemployed, the breakdown i'n foreign trade. the scant wages paid to those in employment, suggest a serious crisis in 1936-