REFLECTION IN TRADE

Hawera Star, Volume LII, 27 February 1933, Page 7

REFLECTION IN TRADE

LATE EDITION

INTERNATIONAL TENSION ABSENCE OF ENTERPRISE BRITAIN BUYING GOLD. DEBT INSTALMENT PROBLEM. (United Press Association—By Electric Telegraph ' Copyright.) Received 12.15 r>.m. to-day. LONDON, Feb. 26. Evidences of recovery which were shown at the beginning of the year are diisappeai-ing owing to international tension. Railway traffic re' ceitpt-s are declining again and electrical consumption is below that of December.

Reports of home industries show an absence of enterprise. The export coal trade is busy with outstanding orders, but little fresh business is involved, so a further setback is probable. Textile industries are modifying the new year optimism, as spring orders are slow in coming. International trade is equally stagnant. The best news il» the reconstruction of the European steel cartel to end the ruinous price cutting of the past few years. This already has resulted in a hardening of prices. Short term money continues slow at London, necessitating the authorities continuing heavy gold purchases. Mr W. C. Dayton, editor of the “Economist,” emphasises that most of this money is coming from America and will be repatriated when the American situation improves. If the Government pays the June instalment of the war debt it will not have funds to repay short-term money. England cannot afford to risk paying the debt from resources loaned her. This would lead to a situation analogous to the Geramn bankruptcy of 1931 and would precipitate a fresh world crisis.