FALLING MARKETS REFLECT DISTURBED EUROPEAN SITUATION

Manawatu Times, Volume LIV, Issue 6624, 10 August 1931, Page 7

FALLING MARKETS REFLECT DISTURBED EUROPEAN SITUATION

Further Fall in Stocks and Shares,

WHEAT, COTTON, RUBBER, TOUCH LOW RECORDS

United Press Association. —By Electric Telegraph.—Copyright. Received Sunday, 9.5 p.m. LONDON, Aug. 8. Three weeks accounts on the Stock Exchange which are just concluded, show tbo period to have been ono of the most disturbing for a long time, due to a combination of advorso factors arising out of the complicated international situation, especially the German crisis. Last Wednesday there was a sharp break in tho principal exchanges which upset tho markets greatly. Many pessimistic rumours were current and it was feared gold withdrawals would be resumed, necessitating a further ad. vance of tho bank rate. Fortunately these fears proved groundless and a slightly more confident tone was apparent when the markets closed yesterday. But in tho course of the threo weeks there had been a serious decline in most gilt-edgeds, British funds showing falls ranging from 1 5.8 to three to the sterling compared with July 17th, and Australian from two to four. The only matter for congratulation is that though prices were marked down there has been little pressure to sell except in gilt-edged, foreign stock and railway markets, and tho actual yolume of business has been limited. As the Financial Times points out, while prices generally moved downwards the falls in many instances have been out of all proportion to tho amount of selling and have mainly reflected tho acute nervousness prevailing. The improvement in commodity prices during the latter half of June following the Hoover debt moratorium proposals, has not been maintained, and downward movement was resumed in July, Wheat, cotton and rubber touched low records and with supplies of each continuing to exceod consumption there does not seem to be a prospect of improvement regarding rubber. The Mincing Lane Tea and Rubber Sharebrokers' Association report says: “Tho silver lining to the cloud lies in the strong probability that the wavering policies closing down is more likely to become effective with no early possibility of largely increased consumption and immediate salvation seems to lie in reduced production. But it is difficult to see how far this can be carried before the resultant improvement in price takes place and the best interests of the industry must be served by those endeavouring to find new uses for the material.”