CHEERFUL TONE

Southland Times, Issue 21606, 19 January 1932, Page 5

CHEERFUL TONE

LONDON MARKETS AUSTRALIAN STOCKS ADVANCE INDUSTRIAL PROFITS DOWN & (United Press Assn.—By Telegraph—Copyright.) London, January 16. There is no doubt that the city has recently become definitely more optimistic, despite a lack of official encouragement and the even more threatening aspect of European finance. The markets are almost cheerful, gilt-edgeds especially hardening, being led by the war loan and Indian securities. Australians have also advanced,notably New South Wales issues. Dr Bruening’s statement created an initial hesitancy which was later converted into renewed strength when it was realized that his bluntness was likely to do good instead of harm. The Economist’s index showing the net profits of 474 representative industrial undertakings for the last quarter of 1931 discloses a fall of £14,000,000, representing a decrease of 54 per cent., the largest ever officially recorded. The previous lowest was 53 per cent, in the last quarter of 1921, representing the slump following the post-war boom. The average rate of ordinary dividends is now 3.9 per cent, compared with 8.4 per cent, last year.