BRITISH TRADE

Hokitika Guardian, 4 December 1929, Page 2

BRITISH TRADE

———«»> FOF TNICHTLY REVIEW. THE AUSTR ALIAN- RANKING PROPOSALS. [United Press Association.---By Electric Telegraph.—Copyright. ] LONDON, November 39. The Stock Exchange has been passing through another period of idleness and depression, and all MK-tions have failed to maintain the improvement which followed the lovering of the bank rate last week. Gilt edgeds were adversely affected by the ill-advised incursion of Mr Tom Shaw into the realms of finance, and, through the Chancellor of ilie Exchequer repudiated his colleague’s threats against war loan holders, there is still a feeling of uneasiness about the gilt-edged markets. Industrials have been very dull. The collapse of 11. S. Horne, though it did not come exactly as a surprise, had the effect of further depressing an already weak market. The effect of the Wall Street slump on the London Stock Exchange is shown by the latest valuation of public securities made by the “Bankers’ Magazine.” The aggregate values of 265 representative securities show a decline in the month ended November 18 of 4.3 per cent, 278 variable interest securities showing a fall of 8.6 per cent, (but it is interesting to note that high-class Investment stocks weathered the storm excellently. There is certainly a nominal drop in British funds, but this is explained by the fact that the half-yearly dividend on war loan has been deducted from the price. Banking circles in London are displaying considerable interest in the proposals made by the Hon. E. P. Theodore in introducing the Commonwealth Bank Amendment Bill, and the views expressed by some hankers are reflected in the criticisms of the financial newspapers. Thus, the “Financial Times” describes one passage of Mr Theodore’s as carrying a threat of direct official interference in financial matters, which definitely accords with the Socialistic view that the banking policy is a national matter, and, as such, should be directed by the Government, hut this is likely to he viewed elsewhere with considerable misgiving. The “Financial Times” continues; “The

a difficult situation, partly a legacy from the past and partly the outcome of forces impossible to control. The great need of the' moment is an improvement in tiro country’s trade position, hut that will not be brought any nearer by tampering with the recognised machinery of international commerce.” The “Financial News” says: “Everybody is agreed that the concentration of gold in the hands of the Commonwealth Bank is a highly desirable development, in full accord with modern principles. What is open, to criticism is the Government’s i.ntcticm to jtake power 'to suspend the free export of gold, or, at least, to reserve the right to veto any gold shipment of which it disapproves. It would be highly regrettable were another British Dominion to imimate Canada’s example of playing tricks with the gold standard. The immediate cause of an efflux of gold from Australia is an adverse trade balance, and, but for the unsettled conditions of the international financial markets, the gap could easily be filled by borrowing in London. The adverse conditions will not last for ever; in fact, there is reason to hope for a change for the better before long, so it would be a very short-sighted policy to take emergency measures of a nature to re-act permanently on the country’s credit.”