BRITISH TRADE

Hokitika Guardian, 15 May 1935, Page 2

BRITISH TRADE

LONDON STOCK EXCHANGE

GOOD TONE IN MARKET

(United Press Association— By Electric Telegraph—Copyright.)

LONDON, Ahiy 12. “Some of tile sunlight which illuminated London oil Jubilee Day seems to have penetrated to many corners of the stock exchange,” says a. writer in a leading financial newspaper. This describes the position accurately, for, though business has not been brisk as the holiday feeling lasted throughout the week, the tone ol almost all markets is distinctly good, and -yesterday there was a hurst of activity in several » departments, notably aircraft company shares, which received their stimulus from the Air Ministry's letter to contractors. All aircraft shares showed <>-ood rises. The average figures of the clearing banks for April afford encouraging evidence of the improvement in business. The total advances by these banns amounted to £744,700,000, the highest April figures for nearly two years .and more than £10,000,000 higher than that of January, 1934. The rise is partly seasonal in character but .may be regarded as a real sign of recovery in trade and Industry. The “Spectator’s” financial editor contributes a timely article, “Twentylire Years of British Banking,” in which he mentions .that when King Geor.ve came to the throne in 1910 the total* banking deposits of the joint stock banks of England and Wales amounted roughly to £720,000,000', whereas at the end of 1934 the total exceeded £2,000,000,000. He adds: “Through these 2o years the joint stock hanks had to stand the strain first of the Great War, then the short period of superficial prosperity, and later the strain occasioned by the many years of financial depression and crises in many parts of , the world, and finally the political crisis in 1931, and our departure from the gold standard. Throughout all these crises confidence in the banks has never waned. This point gains importance when it is lememhoiccl that the stability of our banks has been in striking contrast to conditions prevailing in other countries, not'least in the country which was supposed to benefit most from the Great War, 3 th;e United State-p” ;; D lThe hafidretls of thousands, j of(! jijtiileei ' td- London ?tjpiu--4 )ato'd ; the demand‘Tor apples and Spears of which' consumption this week jhas been very great so that, although supplies have boon heavy prices (have remained steady. As lighter quantities are arriving in the hear future importers are hopeful that present ' prices wjll lie maintained, if not improved. ' The. strong’opening at the ■■'•London wool 'sales; after firmness at Australian selling centres, has been reflected, at. Bradford where, topmakprs were able to advance their quotations.

The “Yorkshire Observer” flays:. “What the trade now wants t’o know is whether the present-advance is likely-, tb be nuiintained. Responsible-men in the industry are saying to-day that they see no reason why woo! in its present sound position should show any weakness in. price between now and the opening ot the next Austialian selling season. “The present keen demand by all wool-using countries and the fact that the overseas selling season is drawj n ,r to 0 close, with consequent diminishing supplies .encourage the belief that prices will remain somewhere near their present level. More than one trader, indeed, predicts still dearer wool before the season ends. ‘‘There-seems to he general satisfaitiou among, wool importers and topmakers at the recent advance,,., which tliev believe;- will , bring out business whiuh lias been held back because buyers have-been uncertain about the trend of prices, and, according to reports, there have' been inquiries which suggest a buying movement is not far off ”