TRADE REVIEW

Southland Times, Issue 21716, 31 May 1932, Page 5

TRADE REVIEW

MARKETS IN BRITAIN DOUBTS REGARDING FUTURE DEPRESSING INFLUENCES (United Press Assn.—Telegraph Copyright.) London, May 28. The strong position on the Stock Exchange mentioned a fortnight _ ago has unfortunately not been maintained, for this week’s happenings caused a weakness all round and the markets closed yesterday in a state of doubt and uncertainty regarding the future. Among the factors contributing to this state of depression are the rumours of an e mergency Budget, with the possibilities of fresh taxation, the announcement that Britain is paying her war debt to the United States in full, the adverse rumours (since . denied) about certain Canadian financial institutions, and Austria’s declaration of a moratorium on her foreign debts, which is regarded as an indication that the whole of Central Europe is drifting to economic chaos. In the face of all these depressing influences prices generally were marked down, especially industrial and foreign bonds, and even gilt-edgeds had a setback through this, mainly due to heavy profit-taking which commenced as soon as the rumours of an emergency Budget were current. In this state of affairs it is satisfactory to be able to record that Australian Government stocks are maintaining their recent recovery and any occasional slight relapses are due to profit-taking, for which there are ample opportunities, as many of these are now quoted at £lO to £l5 higher than in the third week of April. The brightest spot on the Stock Exchange now is the market for West Australian gold mining shares. These have been in strong demand, many buying orders coming from Australia. The Economist’s review of the trade position is somewhat pessimistic. The writer points out that at the moment British industry is experiencing the same seasonal loss as used to be the experience every May during the years of relative prosperity that ended in 1929. The question is how far this setback can legitimately be regarded as seasonal. Taking a broad view of the position at Home and abroad it is perhaps true to say British trade and industry on the balance have held their own since the suspension of the gold standard, but they have not, however, recovered any of the ground previously lost, and it must also be admitted that abroad the situation has seriously deteriorated during the same period and is still rapidly deteriorating. It is thus a question of how long British industry will be able to avoid being dragged down by the steadily declining trend of world activity, for unless the trend of events abroad is rapidly reversed, the Home trade will not be able to hold out for long. Although supplies of Australian and New Zealand apples on the London market have been very large, the prices have not given way to any great extent, but some anxiety is expressed regarding the next fortnight, when over 1,000,000 cases are due to arrive, and it will be surprising if the values are maintained. Fortunately, the cold weather has retarded the growth of soft fruits, and there is not likely to be many strawberries available just yet The Hamburg market has been hardly so good as importers had hoped for Australian apples.

WOOL MARKETS. EASIER TENDENCY SHOWN. LACK OF CONFIDENCE. (United Press Assn.—Telegraph Copyright.) London, May 29. The Australian Wool Council's representative, Mr W. P. Devereux, reports that the general economic and political situation in Europe continues to be very difficult and uncertain and appears to be gradually reaching a more acute stage. Confidence in trading circles is non-existent and everywhere a tendency is noticeable to mark time pending developments. The sales in London have continued with fair general competition, but Merinos, although in small supply, have shown a slightly easier tendency and are now generally about five per cent, below the April closing rates. Crossbreds are in fair demand at opening rates. The withdrawals of all sorts have been fairly extensive. There has been a very dull market for crossbred yams with prices slightly in favour of buyers. The position in France has not improved. Most of the mills are working short time. With the exception of a few specialty yams exporters are unable to do business with Great Britain, even at the reduced tariff owing to the exchange rates. Sales of tops in Germany continue very low owing to the uncertain political and economic outlook. Quotations are unchanged. The futures markets at Antwerp and Roubaix are quiet, and quotations have dropped nearly five per cent, during the last week.