WORST DAY FOR YEARS

Southland Times, Issue 23178, 20 April 1937, Page 3

WORST DAY FOR YEARS

GRAIN MARKETS IN LONDON

ROUT OF COMMODITIES LONDON, April 18. The terrific hammering that the markets have endured for more than a week culminated in a rout of commodities, rubber alone holding its ground. The world’s grain markets experienced the worst day for years because of a terrific flood of selling on Friday. Copper fell the same day by five guineas, the severest break in the memory of the metal exchange. Other base metals are weak.

Cotton broke sharply owing to rumours probably unfounded that the British, French and United States governments had reached an agreement to control commodities. The trend of-business generally, however, was little affected/ Industrial activity continues and profits are rising. The next few weeks should see a slow healthy recovery and a moderate improvement in rubber seems possible. The stock markets, except gold shares, have not endured the hammering commodities received. Commodity shares held their ground well as they did not follow the rise in raw materials. There has been some buying in leading industrials; also in shipping shares, which developed a minor boom. . Australasia United Steam Navigation shares, which were over-looked in the early stages of the advance, jumped £7 on Friday in a narrow market. The outlook seems bright especially, as The Economist’s analysis of industrial profits shows there is no evidence of a check in earnings. The City does not expect Budget surprises, though extraordinary precautions have been taken to avert leakages, including deferring the “Budget” Cabinet meeting until Monday. A tax on cosmetics and patent medicines is probable. The petrol tax may also be increased. Alternatively a higher horsepower tax on cars and an income tax of 5/- are considered inevitable.