BRITISH TRADE

Manawatu Standard, Volume XLIX, Issue 156, 3 June 1929, Page 7

BRITISH TRADE

DEPRESSION ON STOCK EXCHANGE. UNSETTLING FACTORS. INTERESTING COMMENT. (United Press Association.—By Electric Telegraph.—Copyright.) (Australian Press Association.) Received Juno 3, 8.5 a.m. LONDON, June 1. For the past ten days conditions on the Stock Exchange have been very unsettled, the general election, the uncertainty regarding the reparations question and tho slump on Wall Street all tending to restrict business and cause dullness in most markets. On Friday morning came the news of tho King’s illness, which increased the depression, and naturally, things did not improve as the day wore on and the Socialist success at the polls became more pronounced. Even the reports of an agreement being reached at the Reparations Conference failed to improve matters, but though prices were marked down all round the declines were only small. In regard to the future, the Morning Post’s financial editor writes: —

GREAT RESTRAINT FOR FEW DAYS.

“The next few days are likely to be characterised by great restraint in Stock Exchange dealings, and even if the favourable reports that an agreement has been reached at the Reparations Conference should be confirmed, it is doubtful whether in the present temper of the markets much effect is likely to be produced. “The effect of the political landslide hero upon tho foreign markets has yet to be gauged, while a truer tost of the market conditions will bo applied when investors all over tho country have had the week-end to consider the possible effect of the accession to the strength of tho Socialist Party.” Another financial editor says: “There is a general feeling in the city that we are confronted with a new and difficult situation, one effect of which will probably bo to restrain all kind of activity for some little time to come. With fairly strong opposition, the city may not be immediately fearful of any violent Socialistic legislation. On the other hand, the hopes which had been entertained during tho last few weeks, that the return of the Conservative Government with a working majority would ensure a rapid stimulus to trade activity throughout the country, have to be abandoned for the present, while the inactivity on the Stock Exchange usually means a falling rather than a rising in securities. SLUMP IN WHEAT VALUES. “The slump in wheat values brought that commodity into the select group of articles which can bo bought wholesale at pre-war prices.”-

In its comments the Chronicle states: “The belief that still lower prices will be reached is undoubtedly encouraging the decline, for few buy when prices are falling. The reactions of low prices for the world’s chief staple food must prove important in due course and lead to a further cheapening of flour and bread. Cheap wheat should certainly favour Europe as a whole, and it will mean in the coming autumn that the amount Europe has to pay America for grain (an important factor influencing the sterlingdollar exchange rate) will bo smaller than has been usual in late years."