BRITAIN’S BUSINESS

Manawatu Standard, Volume LIII, Issue 249, 18 September 1933, Page 7

BRITAIN’S BUSINESS

SHARE MARKET SATISFACTORY*

TRADE POSITION DISCUSSED

IMPROVEMENT IN BUTTER

(United Press Association—By Electric Telegraph—Copyright.) LONDON, Sept. 16.

Business oil the Stock Exchange continues to be satisfactory in all departments. Industrial stocks are especially in demand as a result of the favourable trade returns, and tlie decrease in the number of unemployed, which naturally has been taken to indicate a revival of trade. There has been some irregularity in gold-mining shares, which fluctuated with the price of the metal. Gilt-edged stocks are steady. The quick success of the Commonwealth loan lias liad a good influence on the whole group, and has caused a general marking-up of Australians, with Commonwealth 5 per cent. 194575 touching 110. Australia received a very good Press regarding the loan, newspapers all over the country refering to it with elequent testimony to the wonderful recovery made in tho last two years. The Morning Post says: “It is only fail- to recognise that those responsible exercised great skill, judging almost exactly the right price of issue. Even a half per cent, might have made all the difference between success and comparative failure. Mr Bruce’s resourcefulness and energy are largely responsible for the success.”

Discussing the trade position, the financial editor of the Spectator writes: “The outlook is moderately hopeful. At the same time two facts must bo borne in mind, which may well restrain any excessive optimism. The first is that some part of the trade recovery is due to the depression having gone to extreme lengths so that reaction is overdue. When the rise in prices began it revealed in many directions a great shortage of stocks held by retailers, and it has been the filling up of those stocks which in a large measure is responsible for some of the improvement in commodity prices. It now remains to be seen whether an adequate increase of the public’s consuming power will follow this replenishment of stocks.

“The other point calling for consideration is the uncertainty in regard to tlie outcome of the experiment in the United States. Should it succeed its influence in stimulating trade activity elswhere may be considerable, even, if it also heralds some great socialisation of business activities. If, however, the efforts being made in the United States should not prove successful, then we must look for some kind of reaction in trade recovery in many parts of tho world, though whether this would be very severe must depend upon the extent to which President Roosevelt’s plan has been supported by an actual inflation of credit and currency.” The recent improvement in the butter trade lias been well maintained, and traders are hopeful regarding future prospects, for the statistical position looks better than for a long time. Not only are the stocks in cold store being substantially reduced, but tlio quantities afloat from New Zealand, Australia and the Argentine are 180,000 boxes less than for the corresponding period of 1932. As the newspaper the Grocer points out, owing to the long spell of hot, dry weather in all European but-ter-producing countries production is rapidly declining. Germany, France, Belgium, Italy, Switzerland and other countries will have to increase their quotas almost immediately, and undoubtedly must import butter much earlier this year than last, as they have very small reserve stocks. Although tlie hot weather has proved beneficial to butter prices, it has had a contrary effect on eggs, the production of which has been stimulated. This has caused a smaller demand for Australians which have been somewhat difficult to sell.

RETURNS’ CLEAR INDICATION.

HEAVY INDUSTRIES HELPED,

Received September 18, 9 a.m. LONDON, Sept. 17. Among the responses of business leaders to the Sunday Times’s question: “Has the industrial tide really turned?” Lord Barnby, director of Francis Willey and Co., Bradford, says the official returns clearly show improving trade, and the increased exports of manufactures reflect lower manufacturing costs owing to a more reasonably valued currency. The import duties are now clearly beginning to help the iron and steel trades, as they have already done in the wool textiles business. Regarding tlie latter, the continued increase in exports follows the previous decrease in imports. AVorkl values have been undoubtedly strengthened by the advances in wool prices in the United States. AA r ool is still reasonable against pre-war values, measured in terms of gold. AVomen’s fashions still favour wool products.