BRITISH TRADE

Hokitika Guardian, 21 September 1937, Page 6

BRITISH TRADE

WALL STREET SELLING. (United Press Association —By Electric Telegraph—Copyright). LONDON. Sept, 1.9. Wall Street is rapidly becmdug recovery’s public enemy number 1. London ba s been quite unprepared for the wave after wave of selling, which has moved even Jlr Roosevelt to declare that investors are .suffering from ‘jitter’s.” The Loose volt administration. however, must bear, a share ol responsibility for the present debacle. Anti-speculation measures have destroyed the market's normal cushion, and consequently unfavourable mnvs produces a maximum of havoc. .Moreover, Wall Street seems to lack London's inherent sanity, it behaves as though war is only a minute away, and has been a direct as well as an . indirect shock to British investors who backed American recovery to the extent of 4oo,(K>a,n()o dollars. The heavy losses many have had to face are largely responsible for the liquidation which has given London brokers the most unhappy week of the year. GILT-RDGEJ) SEOUL ITLES.

Gilt-edged has been the sole , bright spot. Dominion issues sharing in the firmness. Movements in foreign loans have been wide and erratic. Industrials mostly are lower alter a severe test in mid-week, when rumours of provincial difficulties were widespread, but unconfirmed.

Oils are not convincing. Lubbers have failed-to respond to the strength of the commodity position. Commodities generally are. disappointing, though comparatively steady compared with stock markets. The sharp break in metals on September IG, appears to have been due to liquidation of a stale bull account built up early in August, and-also to unfavourable copper statistics.

The demand for butter lias improved and consumption is satisfactory though substantial advances are not expected. WOOL DISAPPOINTING. The wool sale s have not turned out as most members of the industry thought, merinos being firmer, but cross breds lower than expected. Material bought at the London sales is intended chiefly to cover maturing contracts, hence London prices are not reflected at Bradford, where quotations are based on those ruling Hi Australia The outlook even for the near future, is obscure owing to European and Far Eastern uncertainties, -to which the declining franc adds another complication, The decline in the raw material price has naturally deterred buyers, but it is believPed that a good volume of business is waiting-to be' - placed fe directly user 8 feel assured of steady values. Everyone is showing extreme caution in regard to forward transactions and the feeling is growing in Bradford that Japan will concentrate on the purchase of crossbreds a s suitable for uniforms for use in the Sino-Japanese war.