TRADE REVIVAL

Nelson Evening Mail, Volume LXVI, 5 October 1931, Page 5

TRADE REVIVAL

MANY INDUSTRIES RESUME

FAVOURABLE CURRENCY POSITION (United Press Association—By Electric Telegraph—Copyright) LONDON, 3rd October. “First signs of trade revival. Many orders from abroad. Markets being captured. Idle men called hack to work” are the cheering headlines from to-day’s “Daily Telegraph,” many other newspapers taking an equally optimistic view of the situation. Indeed, reports from all parts of the United Kingdom indicate that a definite revival in trade owing to the favourable currency position enabling industries to re-enter markets which have been closed to them for many years. Among industries experiencing a revival may he mentioned the ship building, engineering, coal mining, cotton, artificial silk, and timber mills. Blast furnaces are being restarted _ after a period of inactivity. Ships which have been long laid up in home harbours have left their moorings to take coal cargoes to the Mediterranean and South America. . . Already there has been a gratifying effect on unemployment in the northwestern area. The number of unemployed has fallen by 13,865 during the present week, making a total decrease for the past fortnight of 21,000. There is increased industrial activity in Lancashire, not only in cotton hut in engineering. Coal is doing better than for three years past. , The cotton export trade ‘is : receiving? . unexpectedly large demands, Chinese houses placing orders there for the first 4iime in years. German enquiries for artificial cotton dress goods are particularly heavy with stocks being snapped up freely. Spinners and manufacturers are hegiinting to take hack workers who had been suspended for a long time. Two large mills at Oldham, which have been idle for months, are restarting. One Lancashire merchant says: “A few days ' ago we sold cotton piece goods to the American market which we have not been able to get inside for years. Although the gold standard in Sweden is suspended we are still able to sell cheaper there than the Germans, and we are capturing Germany’s trade daily.” THE STOCK EXCHANGE “Signs of returning confidence are also apparent-in the Stock Exchange! where the week’s chief feature has been a steady investment demand in British funds, with a. general recovery of prices from the low level to which they were unnecessarily marked down when Britain abandoned the gold standard. Ims recovery has been greatly assisted by an improvement in foreign exchanges business. Industrial shares have been restricted bv the, limitation of dealings to a cash basis : this has had the desired effect in checking speculation; and now its object has been achieved and there are indications of greater stability, stock brokers are hoping the committee soon will see its way to revert to normal procedure by withdrawing the limitation order. AUSTRALIAN DRIED FRUIT The Australian dried fruit season, 1931, is unprecedented. Already almost the whole of the arrivals have been sold and it is-expected by mid-October that nothing will be left in first hands. Some idea of the volume of trade done may be gathered from the fact that the quan-. titv of sultanas sold to the end ot September this year isfive’Timesi- as great as the same period in 1930, lexias seven times, while sales of currants have increased 50 per cent. As regards the prices of sultanas, they realised on an? average £8 above 1930, without reckoning the benefit of the exchan o e. Lexias and currants are practically unchanged on the usual season advance. BUTTER PRICES ADVANCE Butter has been assisted by exchange considerations, and prices have risen about four shillings this week, with the demand well maintained at tne higher level, -but eased off slightly yesterday. Consumption remains large, and does not show signs of decreasing and should’ not do so in view of the general improvement in trade. CHEESE MARKET The cheese market also shows a good advance and the position looks strong as far as New Zealand and Australian is concerned. For stored stocks thereof there are only 51,500 crates, as compared with 105,100 a year ago. the woolmarket UNDERGOING ADJUSTMENT (Received sth- October, 8.40 a.m.) ■ LONDON, 4tli October. Mr Devereaux reports that during the week the wool markets have undergone adjustment in accord with , the altenng conditions on the foreign exchanges generally. The advanced prices of London sales now correspond to the depreciation in English currency. British buying continued to dominate the ma ket. Germany was buying fairly steadily and Belgium sand Alsace , made lair purchases. Buyers', from northern France operated very sparingly. . P “ c o es turned to advance early m- the week, but later a less excited tone prevailed. Average greasv merino although notquotable, was lower-than recently, and ruled in buyers’ favour.-but some extra super wools were lugliei. Ime < medium greasy crossbreds met a Along demand and prices for them still Luther improved. Scoured .merino combings were in better demand, but she it ancl faulty descriptions were difficult to sell. Although offerings of increased sales were extended till Wednesday, the quantity likely to, he carried foivaid may approximate 50,000 bales. The British wool industry was much stimulated by the .currency changes which virtually amount to an f duty. Great hopes were entei tamed ot an increase in exports, the prospects of a tariff in Great Britain, combining with financial troubles however weie having a disturbing effect on tile Goi tinent.