CHEERFUL TONE

Hawke's Bay Tribune, Volume XXIII, Issue 260, 16 October 1933, Page 7

CHEERFUL TONE

BRITISH STOCK MARKET DEPRESSION PASSINC. MORE FACTORY EMPLOYMENT. (By Telegraph—Preen Assn.—Copyright.) (Received 10, 10.10 a.m.) LONDON, Oct. 14. Tlie Slock Exchange continues to bo brisk and cheerful and the gilt-edged section is firm, the successful dotation of three large Dominion loans in a fortnight having had an excellent effect. The industrial market, however, is showing the. greatest strength, this becoming more and more pronounced and more remarkable when the sharpness of the rise in prices in recent months is considered. According to the share barometer of one financial newspaper, which takes the basic figure of 100 as representing average values in 1930, British industrials now stand at 100.6 as compared with 79.4 in mid-September, 1932, and 63.0 in mid-September, 1931, The speeches of the Chancellor of the Exchequer and other Ministers all indicate that the long period of depression is now passing. The excellent revenue returns, which encourage hopes of reduced taxation, the good Board of Trade returns, the reduction in unemployment, and the improve, meilt of railway tariffs are all factors contributing to make investors confident. The unemployment figures are particularly encouraging for the decrease in some staple industries is substantial, notably in the wo Hen industry. Since January the number unemployed in the woollen trade has been reduced by 52 per cent., in the hosiery trade 50 per cent., in the metal manufacturing trades 30 per cent., in the iron and steel trades 30 per cent., and in general engineering trades 20 per cent. WHEAT PRICES SAG. The persistent sagging of wheat prices is disheartening to traders, who see no signs of recovery. A writer in the “Evening Standard,” discussing the question, says the position at the moment appears to be that granaries are full, millers are amply stocked, and crops are good, especially in Europe. As a result it is estimated that Europe will require to import only 257 million bushels as against 430 million last year, consequently shipments from North America are becoming less. The statement that the United States Treasury has allocated money to subsidise the export of 35 million bushels to the Orient does not help matters much. It merely means that a corresponding amount of Australian wheat wjll be diverted from Oriental to European markets. The principal adverse influence at the moment is the abundance of wheat available. The estimated surplus in exporting countries for the season 1933-34 is 916 million bushels, while the requirements of importers for the same period is estimated at not more than 552 million bushels. Those figures explain the present apathy of the market.

LACK OF INQUIRY BUTTER MARKET SURPRISED. (Received 16, 10.45 a.m.) LONDON, Oct. 15. Lack of inquiry was responsible for a weakening in Australian and New Zealand butter, somewhat surprising the market, which is attempting to hold the price for finest grades. Little speculative demand for forward butter is expected. Cheese is also difficult to market. The withdrawal of speculative support caused further weakness. Eggs are easier but a decline in Home and Danish production is anticipated, resulting in the wider distribution of colonials.