FIRMER TONE

Otago Daily Times, Issue 23970, 20 November 1939, Page 8

FIRMER TONE

STOCK MARKETS ACTIVE BELIEF IN ALLIED STRENGTH EFFECT OF NEW AGREEMENT (United Press Association) (By Electric Telegraph—Copyright) LONDON, Nov. 18. (Received Nov. 19, at 7.30 p.m.] City commentators agree that the performance of the stock markets is amazing. Almost every section is firmer, especially gilt-edged Dominion stocks. The search for higher yields caused quite a run on Australian and New Zealand issues, which are now in short supply. The Stock Exchange took the rumours of internal dissensions in Germany less seriously than the Paris Bourse, where prices strictly x-espor ded in the belief that the Nazi regime was cracking. London was more influenced by the growing confidence in the overwhelming strength of the Allies. The announcement of the BritishFrench pooling 3f resources was made too late to affect the markets, but there is no doubt that it will bs widely welcomed in the city, which has long urged close economic co-ordination. The Times declared that Britain and France will henceforth conduct the war with complete unity of control. The prime purpose of the British-Fx-ench agreement is protection of the currency, so that now it does not matter whether sterling migrants to France or francs go to London. The joint resources of Britain and France will stand behind the currencies, and will ensure that foreign exchange is used only to purchase necessaries and to make the best use of raw materials, tonnage, production, and other economic factors essential to victory. Commodities are fairly featureless. Cotton failed to repeat last 'week's pyrotechnics, although it finished the week 20 points higher in sympathy with the advance in the United States. Rubber declined fractionally as a result of the quota increase, the purpose of which is to facilitate the accumulation of the rubber required for the Russian-American barter agreement. American consumption in October reached the exceptional level of 55,800 tons. The British Government announced that it is purchasing the whole West African cocoa crop, not because of any shortage in Britain, but apparently :o assure the native growers of a firm market.

Bradford welcomes the pissibility of increased releases of wool for civilian purposes, as few firms are able to meet their requirements. The trade is pressing for improved export facilities, as it believes there is a great opportunity of :capturing enemy markets. It considers that exports could be speeded up without danger to the home position.