MARKET REVIVAL EXPECTED

Southland Times, Issue 23346, 2 November 1937, Page 3

MARKET REVIVAL EXPECTED

OPTIMISTIC FEELING IN LONDON BUSINESS ACTIVITY STILL AT RECORD LEVEL LONDON, October 31. There is a widespread feeling that the markets have touched bottom. Responsible brokers are advising clients to buy because they believe the Stock Exchange is about to experience a great revival. The leadership of gilt-edgeds has certainly been strong. There was persistent buying of Government stocks in the past few days. The technical position of the markets is excellent. The Investor’s Chronicle, however, while agreeing that a rally is long over-due, considers there is no likelihood of a major revival carrying the price levels ruling at the beginning of the year. Private building in Britain has passed the peak and there has been a distinct falling off in the last quarter in new ship building. The demand for heavy electrical goods is lower than at the beginning of the year. The Economist’s survey of the state of trade states that the volume of business activity in Britain remains at a record level despite the falling security and commodity prices, sufficient to enable many branches of activity to maintain the current volume of output many months ahead. The iron, steel and metal being used in industries is still favourablv placed. Deliveries of many products, especially machinery, remain below requirements. The cotton, wool and textile trades have experienced a definite reduction in new business attributable to the fall in prices of raw materials. The consumption trades are most active which is not surprising in view of the steadily-growing national income. The recovery on Wall Street has unfortunately not extended to metals. United States copper producers have lowered the domestic price, but sales remain poor. The lead position is also discouraging. Butter passes from strength to strength. There is a continuous demand and high prices are now ruling, indicating a shortage of stocks in the hands of wholesalers. There is ver ylittle Continental offering and almost no speculative interest. Operators are naturally fearful of being caught in the reaction which must eventually develop, but this seems still remote.

MEAT FREEZING INDUSTRY NEED FOR COMBATING OUTSIDE CONTROL (Special to The Times) DUNEDIN, October 29. The danger of the meat-freezing industry passing out of the hands of those who alone should control it, the farmers of New Zealand, was strongly emphasized at the annual meeting today of the South Otago Freezing Company, Ltd. The chairman (Mr P. McSkimming) in his address touched upon the subject but it was left to Mr J. D. Revie to issue a solemn warning to producers that the danger of absorption of Dominion works by large overseas combines was an ever-increasing one. Mr Revie said he wished to draw attention to the serious position that was developing. The increasing encroachment of overseas interests was a genuine problem and there was a possibility of control of the industry passing into other hands than those of the farmers who, alone should hold such control. It was impossible to deny that lately there had been a gradual slipping away from producer control. Something was happening in this connection every year and if farmers needed proof of the grave difficulties that would accompany the assumption of control by outside interests they had only to look at Argentina where the position was dominated entirely by foreign houses. “When the meat producers of this country can no longer ship on their own account,” Mr Revie said, “the industry will be in serious trouble. It will be a disaster for New Zealand’ and I want.to warn the farmers of South Otago that there is a real danger of that happening. It may not be so apparent in the South Island but things are moving in the North Island and the only way that we can combat it is by sticking loyally to our own works. I know you are sometimes tempted by a little bit extra on price but in the long run it is not worth it. We should always keep in mind the great importance of having our own freezing works.” Mr Revie said that in the North Island freezing companies had been becoming very apprehensive about the present position and in an endeavour to retain farmer control they were prohibiting the sale or transfer of shares, except as between farmer and farmer. It was considered that this would be one safeguard at least against outsiders getting too strong. STORES (United Press Association) WELLINGTON, November 1. McKenzie’s Department Stores report that for more than six months the trading profits have been more than maintained and the directors recommend an interim dividend of 9 per cent, for the half year, and state that no difficulty will be experienced in maintaining this rate on the proposed increased issue of capital. New stores at Stratford, Rotorua and Ashburton will be operating before the end of this month. The directors propose to issue the present unalloted capital of 100,000 shares to shareholders at a premium of 10/- each. THE WOOL - MARKET STRONG COMPETITION AT SYDNEY (Received November 1,11.35 p.m.) SYDNEY, November 1. At the wool sales 11,534 bales were offered and 10,070 were sold, also 2478 privately. Strong general competition was forthcoming from the Continent and Yorkshire, with limited support from Japan. Values were virtually unchanged from last week. Good wools were fully firm. Greasy Merino made up to 22.3 d. The average price of wool last week was £l6 16/5 a bale, or 13.4 d a lb.