BETTER TONE IN BRITISH BUSINESS

Horowhenua Chronicle, 15 June 1931, Page 8

BETTER TONE IN BRITISH BUSINESS

Money Market More Active CAMPAIGN AGAINST SOVIET BUTTER Received Sunday, 7.0 p.m. ■ LONDON, June 14. The Stock Exchange has assumed a decidely brighter tone although the German news is disquieting Most of the markets showed lirmness. According to some newspapers one of the chief influences operating is the growing hope that the MacDonald Government will be defeated next week and an immediate dissolution will follow. On this assumption there was a considerable amount of bear covering especially in Homo rails, which sent the prices up all round. Gilt-edgeds of course participated in the upward movement and the most satisfactory feature was the further improvement in Australian stocks which have been consistently moving higher from the moment it became known that the conversion loan was to be on a voluntary basis. On this subject the Economist writes: ‘‘There is no doubt from the standpoint of Australia’s credit the decision is wise. iSo too, is the determination to press forward with other economies, for in addition to the direct substantial contribution they will make to the rehabilitation of the national finances they will remove .iny fear that the bondholder is being singled out for special treatment. The news that the Opposition arc now co-operating is also encouraging, for it holds out hope that Australia is now on the threshold of a united national effort. Once assured of this the city will be eager to render Australia all possible assistance.” Renewed Activity in Loans The indication of the improvement in financial conditions may be found in the renewal of activity in new capital issues this week. In addition to the New Zealand five millions Joan an issue of three millions of debentures for the Buenos Aires Groat Southern Railway has been arranged, and an issue of about five millions by Woolworths. Apple prices have been fairly well maintained till now, but are becoming rather easier. Importers will not be surprised if they decline somewhat during the remaining month of the season when they come into competition with European soft fruit. Butter Consumption Good Although butter prices have given way slightly the consumption demand remains good, and at the present retail price of 1/2 per pound, there is not much likelihood of any falling off. The recommendations of the committee regarding the marking of blended butter have aroused considerable interest among importers, but no one seems to have a decided opinion as to what effect the recommendations, if adopted, will have. It is generally thought they may cause the elimination of foreign butters from blends and this should cause an increased demand for Australian and New Zealand. The agitation in the newspapers against Siberian butter continues, although the imports from that quarter are unimportant, last month’s only amounting to 30,584 cwt. out of a total of 723,105 cwt. In the face of this outcry, a number of leading multiple stores are advertising that they do not supply Russian butter, and one of the largest blending firms in the country announces in the trade newspapers: “We do not buy, sell or handle any Russian butter.” Significant Trading Figures British Official Wireless. RUGBY, June 12. The trade returns for the month of May show a slight increase in the value of exports as compared with those of April and March, but as compared with the returns in May of last year heavy decreases, both in imparts and exports, are recorded. The imports for the month were valued at £09,600,000 than those of May last year. The exports, valued at £39,600,000, showed a decrease of £21,000,000. The reduction in values, owing to the worldwide slump, is to a large extent responsible for the decreases. A significant feature of the figures is the considerable expansion on the month in the value of the exports of vehicles, including locomotives, motorcars, ships and aircraft. ' . * ' ~~ •