BRIGHTER TONE IN CITY.

New Zealand Herald, Volume LXVIII, Issue 20988, 26 September 1931, Page 10

BRIGHTER TONE IN CITY.

—j ♦ OPTIMIiSM IN BRITAIN. CONFIDENCE IS RETURNING." 'A brighter tone existed in commercial circles in Auckland yesterday, and throughout the day the receipt of optimistic messages regarding the condition of the markets in Great Britain was reflected by a more cheerful outlook in the business community. While the uncertainties of the exchange position and the obscurities which necessarily shroud its immediate effects imposed an attitude of caution with regard to the foreign importing trade, this was offset to a great extent by a renewal of confidence in the prospects of the New Zealand export trade.' /' The general opinion in the city was that the trade in primary products would reap immeasurable benefits from the new conditions. The Auckland Stock Exchange showed a distinctly firmer tone, accompanied by a feeling of buoyancy and an improving market. The prominent Australian stocks were the most influenced, particularly those affected by fluctuations ' in the base metal and produce markets. Following the developments in England there has been a rush among dairy produce merchants to cover inurediate requirements, and this has resulted in an improvement of 6s to 7s a hundredweight i in the price of butter during the week. r J'he position is now quieter at the advanced prices. Thp> following cablegram was received by Hancock and Company, Limited, yesterday: "Market is excited and large business is doing. Confidence is returning. Upward tendency in the market likely to continue." Commenting upon the situation, Mr. Ernest Davis, a director of the company, said the price of raw commodities had heen the barometer of the whole industrial position. The largo British manufacturers had apparently realised that the prices of raw materials bad at last reached bedrock, and that they must now buy to replenish stocks. " As soon as they start to manufacture, the whole machinery is set in motion and the wheels of industry begin turning again," Mr. Davis added. " One most important result that will be the outcome of these developments is the stimulation , which will be given to trade within the Empire. In this respect it is likely that New Zealand will feel a greater measure of benefit than will bo the case in Britain, for it must bo remembered that Britain's trade beyond the Empire is much greater than its trade within it."