“ADRIFT IN FOG”

Nelson Evening Mail, Volume LXXII, 17 April 1939, Page 2

“ADRIFT IN FOG”

DESCRIPTION OF MARKET SITUATION RAPID INCREASE IN STEEL AND IRON CONSUMPTION BIG PURCHASES OF NICKEL BY GERMANY iC'.PA-Bv Electric Telegraph—CoDvriahAl (Received 17th April, 9.10 a.m. ) LONDON, 16th ApriL “Adrift in a fog” is the terse description given by the “Financial Times” to the market situation. The “Financial Times’s” industrial index at 94 remains five points above the pre-Munich level. There is the worst gold share index despite the likelihood of 1939 being a record year in respect to output.

In contrast to the stock markets there is plenty of evidence of business recovery. Domestic consumption of coal and electricity is expanding and the consumption of iron and steel is increasing so rapidly that there is a possibility of a scramble for supplies.

There is ample evidence, too, that Germany has secured large stocks of raw materials essential for war, notably nickel, imports of which in January a.nd February are nearly five times larger than in the corresponding months of 1938. Many are questioning the wisdom and morality of dealings which allow a vital constituent of armaments to pa.ss into threatening hands.

BUDGET DEFICIT The “Investor’s Chronicle” estimates that the Chancellor will face a prospective deficit of from £370.000.000 to £415,000,000. It considers that there is a strong case for raising the balance by taxation to avert the danger of inflation. The activity of commodities slowed down, due to international tension. Movements in metals is not important. Sugar is hardening owing to the desire of all countries to hold adequate stocks against the contingency of war. Wool, however, is comparatively unaffected, and the conviction is generally held that present prices are unlikely' to involve holders in loss. The trade considers that despite the increase in staple fibres producers should not be unduly alarmed. There is no evidence that substitutes will compete in any country where the public is allowed and able to buy freely. BUTTER MARKET The butter market is featureless with the exception of a sharp drop in Danish. Markets will continue to remain unsatisfactory as long as tension lasts.