BRITISH SHIPPING

New Zealand Herald, Volume LXXIV, Issue 22724, 10 May 1937, Page 5

BRITISH SHIPPING

PERIOD OF PROSPERITY

HIGHER FREIGHT RATES

EARNINGS OF COMPANIES

The opinion that British shipping has a considerable time of comparative prosperity before it is expressed in the latest Westminster Bank review, which says that while highly subsidised competition remains, it is unlikely to be more than a potential menace while trade and the demand for space continue to expand. The revival in shipping has been duo mainly to the improvement in international trade, so that industries have been able to pay higher freight rates. While tramp steamers have probably derived the main benefit from the recent improvement, since it was strongest in the trades in which they are chiefly interested, liner companies are also experiencing an increased demand, for .passenger accommodation as well as for cargo space. Passengers entering and leaving Great Britain, for example, numbered 4,535,000 last year, an increase of 466,000.

During the current year, adds the review, there is likely to be a further increase, both as a reflection of rising world prosperity and in consequence of visits to England for the Coronation celebrations. With more ships in commission, operating closer to capacity and carrying cargo at higher freights, the position of shipping companies is necessarily showing improvement. For that, however, there was considerable scope.

According to calculations of the Chamber of Shipping, 28 liner companies, with an aggregate capital of £'61,000,000, last year earned only £6,100,000. or only £1,900,000 after providing for depreciation. It is also estimated that some 200 tramp shipping companies, with an aggregate capital of £26,000,000, have earned no more than an average of J per cent over the past live years, even though depreciation has been under-allowed for to the extent of £10,500,000. In an industry such as shipping, revival of demand is only slowly reflected in freights and earnings until capacity is fully utilised, the review concludes. Then there is a very sharp improvement. and the industry appears now to be entering this phase. CHEAP MONEY POLICY MR. CHAMBERLAIN'S VIEWS FALL IN UNEMPLOYMENT i British Wireless RUGBY, May 7 The Chancellor of the Exchequer, 1 Mr. Neville Chamberlain, stated yesterday in the House of Commons his view on the effects of the cheap money policy, both on prices and on employment. He said that since the policy was initiated in the middle of 1932 the cost of living had risen by sis per cent and the numbers of unemploved had fallen from 2,900,000 to 1,450,000. The cost of living index and the wholesale price index were both lower than in 1929. • Mr. Chamberlain said he could not | accept the assumption , that . cheap i money caused speculation. In so far as ' the rise in commodity prices had been : assisted by speculation, he would have regarded the process as incidental to I general economic activity and prosJ perity. SETBACK TO BUTTER MARKET IN LONDON LOWER PRICES EXPECTED (Received May 9, 5.5 p.m.) LONDON. May 8 The London butter market has suffered a sharp setback. The present position is "sticky." Traders point out that while they feel some improvement can be expected later, and already there has been a big advance, it cannot be expected to continue indefinI lte| yThe next few weeks probably will see even lower prices before an advance materialises. HEN EGGS CHEAPER WHOLESALE RATES REDUCED First grade hen eggs have been coming forward a little more plentifully, states the Auckland Egg Marketing Committee, and a reduction of 2d a dozen has resulted. Second grade are Id cheaper, while third grade and duck eggs are unchanged. It is not anticipated, however, that supplies will warrant a further drop for some time. Wholesale prices are: Hen.—First grade, 1 2s 6?d a dozen; 13, 2s 2jd; C, Is 7Jd. Duck: First grade, 2s .'Ud a dozen; 13, Is ll*d; C, Is 9Jd. Country storekeepers' buying prices for first grade eggs are:—Hen, 2s a dozen; duck, Is 9.U1. HEMP AND TOW GRADINGS DURING APRIL Gradings of hemp for export at New Zealand ports during April amounted to 2951 bales, a decrease of 105 bales, compared with April, 1936. The quantities graded at the respective ports were: —Auckland, 1070 bales; Wellington, 1083; Bluff, 641; Pieton, 100; Blenheim,'s7. The grading classes compare as follows with those of April, 1936: — Good fair, 357 (134); high fair, 704 (1181); low fair, 642 (920); common, 679 (453); reject, 565 (353); condemned, 4 (15). Tow gradings for the month were 235 bales, a decrease of 120 bales on April, 1936. The grading classes compare as follows:—-First grade, nil (49); second grade, 87 (122); third grade, 145 (179); condemned, 3 (5). A total of 23 bales of stripper slips was graded, none being graded in April, 1936. WORK OF RABBIT BOARDS FARMERS' UNION'S SUPPORT [from oun own courte.spo.vdknt] HAMILTON, Saturday The opinion that rabbit boards were doing useful work at present and were more capable of dealing with the rabbit menace than county councils would be, was expressed at yesterday's meeting of the Waiknto sub-provincial executive of the Farmers' Union. A remit from tho Hamilton branch urging that in order to secure " more united action the work of rabbit boards be taken over by county councils was accordingly rejected. t WHEAT AT LIVERPOOL LONDON, May S Wheat.—Liverpool futures: May, 9s 5d a cental; July, 9d 4d; October, 8s B|d.