MARKET REVIEW

Otago Daily Times, Issue 22203, 5 March 1934, Page 9

MARKET REVIEW

GREAT ACTIVITY REPORTED SIGNS OF TRADE REVIVAL (United Press Association.) (By Electric Telegraph—Copyright.) iy LONDON, * March 3. (Received March 4, ,at 6.30 p.m.) The Stock Exchange has maintained great activity during the last fortnight in all sections, but especially in giltedgeds, which have gone from strength to strength, with '2 J per cent, consols and the war loan reaching new records. This upward movement was accentuated by a shortage of stock. The dominions have fully participated, especially. Australians, the demand for which has been influenced- by the success'rif, the convert sion loan. There is very little tralian stock offering, and prices may,* be expected to go still higher in the nearJ future. .- •' ■. '•■>:.' .-(' ". ~ :.£\'i "

Reports of trade In the King: domvshow that most industries are coHj tinuing to make headway, and the crease in employment is being reflected in improved retail business. 'J" '->*

The British industry, fairs at Londcjri and Birmingham closed yesterday after a most successful fortnight. Good business was done in all sections. One London exhibitor of underwear sold £SOOO worth of goods every day. Most of the exhibitors agree that in the number and value of orders actually booked and promising' inquiries received the fair - yielded markedly better results than any in recent years. '*;".; „ The general opinion is that a trade revival has >■■■ definitely begun, and is likely to be sustained. The Federation of British Industries'reports that a decidedly more optimistic spirit is about than in 1933, and more orders have been placed. , . Another indication of improvement is afforded by the of 60 companies which have been summarised by the Economist, of which four-fifths show increased ; profits; ■";'■ * , The- financial activity has also been great, as is shown by the returns of the, Bankers' Clearing .House, which last week cleared cheques amounting to over £912,000,000, which is the highest total since 1931, and £265,000,000 more than a year ago.'* ', ' ' •.;":'

The question of Japanese competition continues to be . much discussed, especially in the textile districts. Sir Eugene Ramsden, addressing his constituents at Bradford, said: "It will have to be tackled by the whole world. It is a problem .we cannot solve alone. The main manufacturing and producing countries must get together and take common action." '

Major Elliot's scheme of subsidising the dairying industry has .aroused coht aider able criticism, both from those approving on general lines of his policy for a reorganisation of agriculture and from those who find in straightforward tariffs ,the exclusion of foreign imports an easy way "to prosperityi:i As the Statist points out :.f The latter class of. critics ignore that .1 act. thatf so long as . the dominions'; butter and cheese enter duty free thedaiiying industry has little to, gain f an increased duty on foreign butter and cheese. ; Even if the dominions- agree to curtail thfe imports of butter, which they show no inclination to do, no material' relief, can be obtained from Danish competition, foV the Anglo-Danish trade agreement binds Britain \tp buy a minimum of. 2,300,000 hundredweight of Danish butter yearly. At present there can be no question that regulating supplies of dairy .produce,',by quota and increased tariffs on /foreign imports would be insufficient to' ensure our dairy farmers, better returns. Major Elliot's choice of measures to assist them is, therefore, restricted, artd it' is difficult to see what alternative course to subsidy could have been taken."

Scottish, industrial conditions are discussed in a survey compiled by the Clydesdale Bank, which says:'," The past few months provided indications, of considerable recovery with or without Government, assistance. There is greater activity at present, or assured, in the Clyde shipyards than .for a 16hg time past", though it is still far below the pre-war standard." The figures.-.of idle shipping in Scottish ports show a very heavy reduction. Several blast furnaces have 'been relit in recent months, and unemployment as a whole has fallen considerably. i Some slight recovery has occurred from the slump in live stock prices, and the ; outlook for the jute industry is somewhat more hopeful. Statistics of the retail trade for November-December show appreciable increases over 1933, whereas those for many preceding months are almost invariably lower. All these signs are encouraging, and, since there is nothing spectacular about them, suggest that the improvement niay prove lasting, more especially since it is based largely on internal conditions, which are correspondingly lees .'liable to sudden extinction by unfavourable world developments. ,': '.. ,