GENERAL ADVANCE

Poverty Bay Herald, Volume LXII, Issue 18597, 7 January 1935, Page 7

GENERAL ADVANCE

STOCK EXCHANGE YEAR

OPENS AUSPICIOUSLY

1 ’.ANKS ’ PROEITS INOR BASE

(British Official Wireless.) Rec. 10 a.m. RUGBY. Jan. Barclay’s Bank and Martin’s Bank are the first ot the leading British banks to announce their profits and dividends for the past year. Both record a moderate increase in profits and maintain their dividends at the same rates as for 1933, namely 10 per cent. This is in accordance with the general expectations.

The stock exchange year opened auspiciously with strength developing in all sections and business expanding with an almost general advance in prices, the gilt-edged department being particularly strong, several British funds reaching new high records, a position which seems likely to be maintained in view of the prospect of a prolonged period of cheap money. Industrials arc also showing much activity. There has been a mild boom in gold shares during the last few days as the price of metal advanced. The Spectator’s financial editor, in a discussion on the New Year’s prospects, describes as extremely optimistic the views held on the Stock Exchange, which anticipates a further vise in nearly all public securities, and regards tl?e prospects of the home trade as particularly hopeful. The writer gives a word of caution against too much hopefulness, and concludes by saying that be believes that for the first half-year at all events thero is likely to bo a considerable increase in activity both in finance and the Home trade.

“DISQUIETING SYMPTOMS”

ROTHERMERE’S VIEWS

BUDGET AND TRADE FIGURES

(Received Jan. 7, 11.30 a.m.) LONDON, Jan. 6.

Lord Ro.hermere, in an article in (be Daily Dispatch, says that the budgetary and trading figures for 1935 exhibit the same disquieting symptoms observable in 1927-28, leading to the crisis of 1931. The expenditure is again mounting. The adverse trade balance grew about £3,000,(XX) a month in 1934, mid if the tendency persists it may grow by another £3,000,000 in 1935, which would lower the value of currency and increase the cost of living. Britain could live with only half the manufactured imports at present received, which would decrease the outgoings by £80,000,000 a year, making us a creditor nation. The Government should immediately enforce a reduction m imports, prepare to counter the increasing Japanese competition, especially in textiles, and also challenge Socialism, and reinforce the Front Bench, otherwife it would iose the next election, which would bo fatal to constitutionalism.

CONDITIONS IN 1935

THE FRENCH OUTLOOK VITAL PROBLEMS FACED LONDON, Dec. 29. subdued optimism is noticeable in Hie French outlook for 1935, owing to the slackening of political and economic tension both at home and in countries with which she is in close relation.

This view is expressed by the Paris correspondent oi the Times. He says that rearmament still dominates foreign policy, leading to a demand for an increase in the term of service for conscripts, who, during the leanest years, 1936 to 1940, will be 100,000 below the margin of safety. This raises a most important social question. The development. of relations between France and Russia is probable, 'accompanied by an Eastern Pact, but a 'Franco-German rapprochement—the keystone of European peace—is further ahead, and will be bard to settle while the struggle between dictatorships and democracies is progressing.