LITTLE EVIDENCE

Poverty Bay Herald, Volume LXV, Issue 19679, 11 July 1938, Page 5

LITTLE EVIDENCE

RECOVERY IN BUSINESS TREND IN AMERICA , REACTIONS IN LONDON COMMODITY BAROMETER (Klee. Tel. Copyright— I’nited Press Assn.) (Reed. July 11, noon.) LONDON. July 10. Commodities are becoming one ot the most anxiously watched barometers. Wall Street is now showing signs of hesitancy and the question is how far traders will follow the lead of the stock markets and act in the belief that it is not wise to further delay restocking as far as America is concerned. The National City Bank. New York, takes the view that there is considerable under-production in respect to many consumption goods, compared with the present demands by purchasers. Consequently, restocking is inevitable and is likely to be accelei--1 ated by Government spending. So far there is little objective in evidence of business recovery in the United States. Leading trade journals report stagnant conditions in the steel industry as consumers are considering how the reduction in prices will affect them. Most commentators in London agree that business activity in Britain is likely to fall in the next few months, regardless of what happens in the United States, but the current levels of industrial shares more than discount such a recession. If Wall Street’s anticipation of an autumn revival materialises Britain will not lag far behind. One concrete fact is the immensely strong technical position of the markets, both in England and America. It will take a considerable run of bad news seriously to weaken the price structure.