BRITISH TRADE REVIEW

Hawera Star, Volume L, 1 December 1930, Page 5

BRITISH TRADE REVIEW

DULLNESS IN STOCK MARKETS

BRIGHTER WOOL OUTLOOK

BUTTER MARKET COLLAPSE

( UiiiUHi I‘mui An.vjuiuUon—By Electric- Telegrupli Copyright.) LONDON, Nov. 29. Dulness reigns over the Stock Exchange business in most sections on a small scale, but prices generally are maintained. The outflow of gold to France lias temporarily arrested an improvement in British funds_, but these remain in good demand. Further evidence, that there is plenty of money available for investment may! be found in the heavy over-subscrip-tion of issue by the Central Electricity Board of £6,000,005 at 4) per cent, stock at 95). Although this is not trustee stock, and yields- less than 52 per cent, it was subscribed more than tenfold in a few minutes. Applicants only received about- six or seven per cent of the amount applied for. The action of the directors of the London, Midland and Scottish Railwayin reducing their fees by 25 per cent is likely to be followed, though perhaps not to the same extent, by three other gerat railway groups, which will submit proposals regarding their directors’ fees at meetings early in 1931. Although the actual saving in the case of the London, Midland and Scottish only amounts to £8750 a year, and if other groups also reduce bv 25 per cent the total reduction will only be about £25,000, the step meets general public approval, for it is taken as an indication that the railway economics will he from top to bottom, and that the lowly-paid workers will not he the only sufferers.

This Christmas. is unlikely to be a merry one for a large number of workers in Belfast, for Workman, Clark. Limited, announce the closing down of their great shipyard there for two months from December 20. They are. hopeful that the point of the Repression has now been passed, and that, with the turn of the year, freight markets and shipping generally will show such improvement that, not only will vessels in hand be required immediately, but fresh orders will be forthcoming. Regarding the wool position the Yorkshire “Observer’s” correspondent says a hardening tendency is notified at the London sales. Merinos are altogether in steadier condition than crossbreds, and the cheapness/of finer wools has so increased the consumptive demand aud the actual manufacturing output, that renewed vitality has been created in this section of the industry, confidence has returned, and values are established on a firmer foundation. But there was a, weakness in the crossbred section which was drastically demontrated when the New Zealand sales opened in Auckland. Opinion at Bradford, however, is consolidated around the idea that the improvement will eventually be general. It is argued, apparently with some reasonable justification, that provided the consumption of merinos continues the finer grades of wool- will appreciate, and, as a necessary corrective to' the excessive rise in consumption, will spread to those lower down on the scale. ' The butter market has gone from bad to worse. Prices declined about six shillings this week, due to heavy arrivals, both actual and prospective, which make holders nervous, and inclined to press sales on both cold stored stocks and fresh landed goods.

Consumption is well maintained, thanks to low retail prices, but does ’not show an expansion. Cheese also has an unsatisfactory market, and although the price has been lowered about five shillings the demand is slow. Canada is offering the remainder of its make for shipment at low prices, so there seems -no prospect of any impi'ovenxnt in New - - Zealand and Australian. The Economists’ monthly l'eview says the current indicators of state trade lately Y-j have become a little more conflicting than earlier in the autumn. This on the whole is a good sign, for it means that one or two sporadic rays of light have begun to penetrate the general depression. To summarise the good and had , signs: Among the foi’mer is some slight improvement over previous months shown ’by the October trade returns, gx-eater stability of some wholesale prices since October, and improvement in tone and employment in most textile trades.

The bad signs include poor October iron and steel production figures, an increase in unemployment in the heavy industries, and uncertainty over.' the coal and railway wage negotiations. To these must he added such adverse foreign developments as the recent French and American hank failures, and a further break in wheat prices.