TRADE RECOVERY

Nelson Evening Mail, Volume LXVI, 21 August 1933, Page 5

TRADE RECOVERY

ACCUMULATING EVIDENCE IN BRITAIN GREAT ACTIVITY ON STOCK EXCHANGE OPTIMISTIC VIEW IN THE PRESS (United Press Association—By Electrio ’ Telegraph—Copyright) LONDON, 19th August. _ Although the holiday season is in foil swing the Stock Exchange is showing remarkable activity and strength. Brokers say this is the busiest August since the boom days of 1928-1929. Pressure of work is so great that many firms increased staffs and many partners postponed summer leave. The number of dealings recorded in the official list has been averaging over seven thousand daily, which is well above the average. A feature of the market lias been that tile continued rise, of British funds has been accompanied by a general advance in gold mining shares, notably South African and Australian, while a wave of optimism swept over industrial markets, many of these reaching near high records. Among industrials for which the demand is active are distillery shares, due to anticipation that the United States Prohibition law will be repealed before Christmas. It is reported that several distilleries in Scotland have re-opened after being idle for some time to meet the demand from America, where they have very little mature whisky. American syndicates have already placed large orders in Scotland. Prices for some grades of whisky have risen 50 per cent, in two months, Distillers Company Limited, a great combine with a capital of fourteen millions sterling, is said to have secured large American orders. On the strength of this report its ordinary shares advanced to 90s 3d, showing a rise of 10s in a month. Last year the price of these shares ranged from 40s to 58s. HOP PROSPECTS Another article which America is buying largely is hops. According to the chairman of a large brewing company it is thought that within the next four months a large proportion of the growing crop of English hops and also next year’s crop may be sold out of this country before English brewers’ requirements are met. As there are no stocks in the hands of the Marketing Board, if this expectation is realised it appears as if there will be a good opportunity for Tasmanian hops in this market. OPTIMISTIC VIEW Many newspapers are taking an optimistic view of the trade position, among them being the “Daily Express, which mentions the growing belief in the city that- the autumn will see a revival of British trade far outstripping anything which has occurred since the world slump began in 1929. Brokers, bankers, shipping leaders, and other well placed observers who hitherto nave adopted a cautious attitude towards trade recovery are being converted by the accumulatign weight of evidence. Coming on top of the progress already achieved this year, the autumn upswing of trade will prove conclusively that the slump is dead, and progress from then onwards should be steadily upwards-to-wafds 'the peak of the trade cycle. WINE TRADE Among signs of improvement in the general position of the country one, of the most noticeable is the increased importation of wines. For the. seven months ending 31st July imports amounted to 4,880,588 gallons compared with 3,989,935 in the correponding period of 1932. Imports from Australia during the seven months showed a alight decline. Prospects for the Australian egg sea, son are far more favourable appeared possible a short time ago. The long spell of hot dry weather caused a great drop in production in Britain and on the Continent, with a considerable decline in foreign imports, so that supplies on the market are barely sufficient to meet trade Requirements Consequentlv many eggs _ which had been stored to meet the winter demand have been sold. The consignment will be sold on Monday and it is expected to realise about 11s 6d a long hundred fox fifteens . Importers think this will be about the ruling price for some time, as in addition to Australian considerable supplies of South African commence early in September.