COMMODITY MARKETS AND PRICES.

Manawatu Standard, Volume LVIII, Issue 230, 27 August 1938, Page 5

COMMODITY MARKETS AND PRICES.

DEPRESSION NOT PROBABLE. (By "Penloo.") Sir "William Beveridge, former Director of the London, School of Economics, told the British Association that the history of the first signs of the last depression was being repeated, textile manufactures leading the plunge towards recession. There is no indication from this that a slump is inevitable. There is no doubt that the woollen and cotton trades are experienc-l ing an anxious time, but the fact that the textile manufactures are dull does, not necessarily mean that is a sign of i an approaching slunrp. There is not the least prospect of a depression such as the world has experienced. There will, of course, be the iisual ups and downs of trade and of business, but most business people expect to see such fluctuations. 'For many months war has been talked by all sorts of people but now it is dawning upon all that war is not likely in the near future. Everyone knows that all the nations have carried out extensive defence plans, and now people realise that there will be no war or at any rate the possibility of war has been postponed for several years, at least. The nations do not want trade setbacks any more than they want a war, and they have had experience of both. /'The nations must endeavour to stimulate international trade. This is not a difficult matter, for it means concerted action for the removal of exchange control, and the lowering qf tariff barriers. The question of money ■ need not enter into consideration, for 1 the world possesses an enormous store of gold, more than sufficient to finance double the present volume of international trade. Before adjustments can be made the nations must abandon the new deals, and unorthodox finance, and return to the well-established principles of finance and trade such as existed before the war. It will not be the business men who will oppose or prevent this return to the sound and well-tried principles of the past, but one cannot say the same for the politicians. But it must be apparent to the meanest intelligence that the schemes and panaceas tried by several nations for driving away the depression have been failures. We must get back to our old Sound principles. So far as the Dominion is concern- • ■ eel there is not yet much interest in market movements. Shipments of dairy produce will not be going forward in any volume for some weeks to come and the same can be said of frozen meat." The wool is still on the sheep's back, and shearing will not take place before October, and then it will. depend upon the weather. The wool market is not very bright, but a change for the better is quite possible, if not probable. People must realise now that there will be no war, and this should induce many to spend more freely on clothes. The Australian wool 'selling season begins soon and that should give wool growers an idea of the trend of the market. _ But- j t'er continues to realise a fair price and ;; the same can be said of frozen meat, , and there is no reason for anticipat- ,

ing any violent fluctuations in these markets. It is a question whether the output of primary products for export will bo as large as in the past season because of losses of stock.

The Stock Exchanges are just moderately busy, for they are suffering from the dullness on the London Stock " Exchange. Stockbrokers are having " an anxious time, not' knowing fully r how to advise their clients. If prices go very low it is a signal to the shrewd e investor to take advantage of the mar- " ket.