MORE CHEERFUL

Nelson Evening Mail, Volume LXIV, 11 March 1930, Page 3

MORE CHEERFUL

LONDON STOCK EXCHANGE

CHEAPER MONEY

EXPANSION OK mis IN ESS HOPED HU!’

(United Press AsHoeiatioii —Bv Electric

Telegraph —Copyright)

.LONDON, ilt.li March. The Stock Tixcli.inge is at last showing signs of recovery I'miu the long period of depression. Early ibis week dullness still prevailed bin political developments and the bet ter monetary outlook brought about a mori' cbeerlul lone, ami the reduction of the bank rale gave a further stimulus, with the result, that the market closed yesterday with prices generally linn and a feeling nl mild optimism abroad.

There has not, yet been any great increase in buying on the part of tile public, but the stream of safes by necessitous holders lias been checked, and as the influence of cheaper money spreads some expansion of business may be expected, but there is unlikely to be any sharp recovery in the markets, for investors have been having a bad time for some months past, and if cannot be expected that their confidence will be resLored in a moment. There is also uncertainty about what the Budget will firing forth, and until that is out of the way investors are likely to hold their hands. That they are not disposed to operate is shown by the result of several new issues, of which very large proportions, 70 and 80 per cent, have been left with the underwriters.

WOOL POSITION

Regarding the wool position the "Yorkshire Rost," says: "If Australian growers accept the advice of Hie wisest leaders they will have nothing to do with such a scheme as that under which 400,000 bales will be withdrawn from tile market. The great need of the trade to-day is larger consumption and the withdrawal of 400,000 bales would defeat that object. Assuming that it is practicable to keep such a quantity oil the market Hie inevitable result- would be to open the door to an equivalent i|iiantify of competition fibres, .such as artificial silk, wool, and cotton. Oil the other hand only a very small increase in the public demand for wool clothing stimulated by a fall in the cost of the finished article would account lor the .absorption of 400,000 bales in no time. Everything points irresistibly to Llie conclusion that for the improvement of the wool industry —increase in machinery, activity in employment, possibly even a rise in the price of raw material suliirient, to satisfy 'growers —we must look to augmentation of the ultimate demand which can only come about when tlie retail prices, which tire quite out of touch with present day realities, have been sir drastically modified that the public will huv freely."

SERIOUS SHIRRING POSITION The position in the shipping industry is becoming most serious. According to a writer in the “Einancial Times’’ more than 300 vessels with a carrying capacity of nearly 2,000,000 tons, mostly flying the British flag, are lying idle with crews numbering some ten thousand men paid off. .More than 1400 melt and oflicors are seeking employment tit. Cardiff, compared with less than 1000 a month ago and Jess than 900 two mouths ago. This is a typical state of affairs prevailing in the seaport towns in the United Kingdom. In the last two months vessels have been laid up on an unprecedented scale as the collapse ol the grain markets lias rendered it impossible for owners to secure profitable employment for ships. The collapse of the grain markets has been reflected in other trades to which ships have been diverted, with the result that the supply of available tonnage lias exceeded the demand, with an inevitable reduction in rates. Though the heavy lay-ing-up of vessels lias created a steadier tendency of outward freights, homeward requirements are still 100 meagre to offer any encouragement for the early future, though much is Imped for the steady absorption of tonnage in the Russian limber trade through the opening of the White Sea and Ualtie ports and tlm navigation of (lie SI. Laurence river. The future, however, will depend on the grain shipments, for unless lilore is a substantial improvement in this direction the volume of shipping available for oilier trades will exceed requirements.