TRADING IN BRITAIN

Poverty Bay Herald, Volume LIX, Issue 17948, 28 November 1932, Page 5

TRADING IN BRITAIN

SOME HOPEFUL REPORTS STOCK EXCHANGE DULL WAR DEBTS UNCERTAINTY (Elec. Tel. Copyright—United Press Assn.) (Received Nov. 38, 11 a.m.) LONDON, Nov. 27. Under the disturbing influence of uncertainty regarding war debts and the weakness of sterling there has been a reaction in the gilt-edged section of the Stock Exchange, prices generally being marked down, chiefly as a precaution, for there has been no heavy soiling Other stocks declined in sympathy with gilt-edged,s, ami dullness reigned throughout most markets. The only bright spot was the mining market, where the rise in the price of gold to the record high level of £6 7s lid per oz. naturally had a stimulating effect. There has been keen buying, especially of West Africans, Kaffirs, and West Australians, several of the last-named showing considerable rises.

Reports from industrial centres of the United Kingdom*, on the whole,

are encouraging. According to the Economists’ monthly review, the state of trade in October witnessed a further moderate improvement of business activity, which has continued into the current month. There is a better feelin<? in the cotton trade, following a settlement of the labor disputes. Wool prices have been well maintained. In t'he eonl trade, the current export demand in some areas, notably .Scotland, is well u'p to the quota allocations for this quarter, and an actual shortage in some grades is reported. As' regards iron and steel, Continental prices have again risen and are now fully at parity with British. Three motor manufacturers have booked good orders. Many of the lighter metal trades are improving. On the other hand, leading engineering trades are more despondent, and there is a continuance of the donrps.sion in shipbuilding.

The fell in sterling is, for the moment, helping British business ot the expense of other ■countries. The recent' improvement in trade may persist for a time to the extent that we can depend upon our own market nnd other markets linked with sterling. Ultimately, however, our own trade is dependent on the purchasing power all over the world, and until the foundations of economic reconstruction are laid by international co-operation we cannot hope to make much real lasting progress in this country.