LONDON STOCK EXCHANGE

Nelson Evening Mail, Volume LXIV, 4 May 1931, Page 5

LONDON STOCK EXCHANGE

RALLY IN GILT-EDGED STOCKS INDUSTRIALS DEPRESSED FREIGHT RATES STRENGTHEN i (United Prosi Association—By Electrio Telegraph—Copyright) LONDON, 2nd May. Stock Exchange accounts which closed on Thursday were very unsatisfactory for almost all departments except giltedgeds, which rallied strongly after the disclosure of the Budget secrets. As soon as it wus-known that there was no addition to direct taxation all British funds moved upwards, in some cases' almost two points, and remained firm. * Brewery and tobacco shares also recovered when it was known that Mr Snowden had not imposed fresh taxation. Even oil shares, which had been very depressed, became a shade steadier as the additional tax was less than anticipated. But apart from these, industrial shares generally have given way.seriously under . a number of adverse happenings. Chief among these is renewed liquidation from Wall Street following the failure of two important firms there, and unsatisfactory advices from the Continent. Other depressing events have been the fall in community prices., decreased earnings of several large trading concerns, and consequent reduction of dividends, and in some cases passing them. As an illustration of the unsatisfactory position .it may be mentioned that new capital issues for April, according to statistics compiled by the Midland Bank, were only £1,687,000, compared with £2,270,000 in April, 1930. According to the “Financial News,” however,'in some directions an improve- • ment is now apparent. The number of unemployed on 20th April was 2,513,856, the lowest since 22nd December, 1930. Freight rates have strengthened and idle shipping has decreased. In the last fortnight alone some 250 to 280 vessels, representing a tonnage of 1,500,000 to 1,800,000. have been chartered. Greater strength has been shown in the wheat, and maize markets, while retail trade figures last month make a somewhat better showing. The “Financial News” sums up that though the situation is still full of difficulty and capable of alarm- ■ ■ ing deterioration, it is incorrect to say that no hopeful sign exists.