PRICES ON UP GRADE

Hawera Star, Volume LII, 5 September 1932, Page 7

PRICES ON UP GRADE

BRITAIN’S TRADE OUTLOOK PROSPECTS DEEMED BRIGHTER CHANCE TOi LEAD WORLD. RESTORATION] OF PRESTIGE. United Press Association—Bv Electric Telegrapt) Copyright.) Received 12.30 p.m to-day. LONDON Sept 3. Reports from principal businesses throughout Great Britain indicate a steady, though at present small,, improvement m trade with prices of most commodities oil the. up grade. Cotton and rubber show signs of recovery. All metals have improved. Tin yesterday jumped £6 following an announcement of a considerable reduction in the visible supply and closed at the highest price since April 1930. This rise was helped by very active American buying and both copper and lead were dealt in heavily at higher prices.' There was also a better enquiry for iron and steel. In textiles, notably wool, there was a pronounced improvement. The Midland Bank’s monthly review gives, am fintejresting rcjsuma of the present 'connections of the country compared with a. year ago when Britain left the gold 'standard. The re(vieftv writer imajintajins {that Ja comparison is favourable to conditions prevailing to-day and describes the volume of tratle, though falling back in recent months, as slightly larger than a year ago, while movements of our trade relative to those for other countries are somewhat in our favour. “Among other things the output here s slightly larger than in 1931,” he continues. “Oh all accounts our relationship with the rest of the world in economic affairs is much stronger and more favourable. We are 310 longer the , world’s dunce nor the moral weakling we were accounted a year ago.”

The review sums up the position thus : “On the whole the international background for business recovery is substantially brighter than last year. Further Great Britain’s capacity for moulding events has largely increased. We are no longer suspect in matters financial. Our prestige has been 'restored to a degree no one could harm foreseen a year ago. We are, moreover, in a position that, freed from the direct limitations of the gold standard, we can take a leading part in formulating a composite world monetary policy. So far as is known we are under no commitment to return to gold —certainly to no specified parity nor any particular date. “The future therefore lies open to us. It is a great unbounded plain with many pitfalls no doubt, but with no restrictions upon the direction of our movement. For these reasons >.t may be safely said that, while pursuing a wise monetary policy at home, we have an unparalleled opportuntiy to lead the world in a combined harmonious movement towards restored prosperity through rising commodity prices.” The stock exchange has shown considerable activity lately, especially in gilt-ecfged whch have been stimulated by the Treasury’s retention of the embargo 011 new issues till October 1. All British funds have advanced. Australian and New Zealand also improved.