TRADE REVIEW

Hawke's Bay Tribune, Volume XXII, Issue 35, 25 January 1932, Page 8

TRADE REVIEW

PRICES HARDEN LONDON STOCK EXCHANGE NEW ZEALAND ADVANCES. INVESTORS MORE CONFIDENT. London. Jan. 23. The improved tone on the Stock Exchange which marked the opening of the year is maintained. Prices have hardened in most sections. Several factors contributed to make investors more confident, the most notable being the Government’s announcement of the huge income tax payments received in the first 16 days of January. Another satisfactory feature has been the knowledge that Continental countries are buying considerable quantities of stocks here. The general improvement on Wall Street has also had a good effect. Yet another good point is the possibility of a reduction of the bank rate at a not far distant date.

Gilt-edged stocks led the way in the. upward movement, Australians being especially strong and New Zcalands, which hitherto had been rather out of favour showing large advances compared with a fortnight ago. It is generally thought that the improvement is likely to continue, though profit taking may cause occasional setbacks. An interesting event has been the issue of the first colonial loan for many months. The Mauritius Government £500,000 at five per cent., 1951-71, at £9BJ, proved so attractive that it was subscribed nearly four times over and is quoted at £1 2/6 premium. TEXTILE TRADE REVIVAL. The wool textile revival in Yorkshire is spreading. According to the “Daily Telegraph’s” Bradford correspondent there is great activity at West Riding mills, which are engaged in a big effort to supply the home market with dress goods and hosiery formerly obtained by a vantagcously placed Continental competitors.

Such is the revolution that has occur- < red in production for the home market 1 consequent on our abandoning the gold , standard and the imposition of import j duties that some displaced foreign com- i petitors are making inquiries either for mills or sites in the Bradford district. t French and German visitors are explor- ' ing the possibilities of starting the | manufacture of light dress goods. A i German firm wishes to set up a clothing factory, a Swiss concern is anxious to make art silks in the Huddersfield ' locality, and a Dutch undertaking < wants a factory near Batley or Dews- ; bury, for the manufacture of carpets, curtains, etc. BUTTER MARKET UNCERTAINTY. Germany’s proposal to tax import butter caused a slight weakness to develop in the market, but prices have since recovered about a shilling. Importers are still uncertain about exactly what is going to happen, but the general impression is that though Germany’s action may cause the diversion of large quantities of Continental butter to Great Britain this is not likely to happen for some months. Eight butter exporting countries, including Denmark, Holland and Finland, have between them still 40,000 tons to send to Germany on the old basis >f duty and it will be several months before this is absorbed. With regard to the question of im-

posing a tariff on butter, which has been suggested as the best means of preventing unduly heavy importations, it may be pointed out that the Government’s tariff proposals are understood to exclude food. A suggestion is made that the quota system might be applied to butter imports. AUSTRALIAN EGGS. The Australian egg season is practically finished, for though there are a few parcels still to arrive they are very small. Unfortunately the market is most depressed, for owing to the phenomally mild winter here and on the Continent production has been maintained and supplies are very heavy. Consequently the best price obtainable for Australians is 10s for fifteens and 10s 6d for sixteens, but although the present values are the lowest of the season Australian shippers have not done so badly, thanks to the weeks when sixteens were realising about 16s. The average results for the season are expected to bo about 12s for fourtcens, 13s for fifteens and 14s for sixteens. When the exchange premium is added t n these prices they must be regarded as satisfactory.