TRADE IN ENGLAND

Nelson Evening Mail, Volume LXXII, 16 July 1938, Page 10

TRADE IN ENGLAND

RETURN OF CONFIDENCE INTERRUPTED FEARS OF INTERNATIONAL TENSION U P A —Uv Electric lelegra ph—Copyright LONDON, 15th July. The reaction of Wall Street to unfavourable reports on home industry and renewed fears of international tension interrupted the return of confidence to markets which at the end of the week were in steady if orderly retreat. All popular equities were marked down in sympathy with Courtaulds (referred to on Page 2) though no heavy selling pressure was encountered. It appears that Britain must rely on rearmament to keep things going until the United States’ recovery is far enough advanced to have international repercussions. The slight decline in gilt-edged may reflect political fears but these are more strongly revealed in the abnormal demand for gold depressing the franc and sterling.

Overseas trade figures are also causing anxiety as they reveal with disquieting clarity the deterioration in Britain’s position, the decline in exports strongly suggesting that Britain’s prices are above world levels. Interest attaches to the current wool sales as London is the only source of supply at this time of the year. The prices indicate European buyers’ idea of values. It is significan f that Yorkshire is buying despite considerable stocks and disappointing consumption. Other commodities, with the exception of sugar which is firm, have turned downward.