DISTURBING FACTORS

Poverty Bay Herald, Volume LX, Issue 18256, 27 November 1933, Page 5

DISTURBING FACTORS

WORLD TRADE CONDITIONS British Market steady INDUSTRIAL ACTIVITY (Mice. TO. Copyright —United Press Assn.) (Received Nov. 27, 11 a.in.) LONDON, Nov. 25. The stock markets recently have pie seated a very dull appearance, which is not, surprising when the uncertainties of the international situation are considered. A well-informed financial writer says the investment, market still is apprenensive regarding the outcome ol the dollar depreciation policy, and the French position is creating some misgivings. The virtual collapse of the Disarmament Conference also is a disturbing factor. Amid these snri•rnfmliiigs, the favorable trend of home developments, reflected in the brighter trade and hopeful revenue returns, lail to have airy beneficial effect. Such were the conditions prevailing till Thursday, when brokers and jobbers began to take a more optimistic view, and there was a general recovery of, prices, though business was not very active.

Australian and New Zealand stocks generally remained firm, wfien lintish funds showed weakness. Australia’s position now is regarded as most satisfactory, and newspaper comments are unanimously laudatory. For instance, the Stock Exchange Gazette lias an article headed, “Australia Advances.” THE AMERICAN POLICY Although Mr. Roosevelt's policy ol depreciation of the external value of the dollar is hampering the economic recovery of the world, it has had no great effect hitherto in Great Britain, but, as the Economist's trade supplement points out, the scope for further expansion of this country is definitely limited in the absence of an improvement elsewhere. Moreover, the present level of activity cannot be maintained long in the face of the serious deterioration of other countries. For example, a further fall in the value of the dollar and a renewed decline in the purchasing power of agricultural countries, might seriously weaken our export position.

Meanwhile, so far as individual industries are concerned, reports are satisfactory. Both in activity and the volume of inquiry, the engineering industry shows no signs of falling off. Motor car manufacturers are working at full pressure, and many firms have been compelled to increase their staffs. The value of building plans passed in October, though somewhat lower than in the previous month, shows an increase compared with October, 1932. The chemical industry has made further headway, and the pottery trade is more active. The shipping industry remains depressed, but recently there have been indications of a slight improvement, with hardening freight rates. Boot and shoe manufacturers’ report a falling off in the demand, but news from the textile districts is encouraging. The wool textile trade has experienced a striking recovery, and the increase in the demand for rayon fabrics lias been maintained. Even the cotton industry appears to have made some headway, both at home and abroad. Retail trade lias been more encouraging in the past month, and the present indications point to an mprovement of sales for Christmas.