IRON AND STEEL INDUSTRY

Southland Times, Issue 23678, 29 November 1938, Page 3

IRON AND STEEL INDUSTRY

RECONSTRUCTION IN BRITAIN FEDERATION ADOPTS WISE POLICY LONDON, November 24. The reconstruction of the British iron and steel industry following the economic blizzard of 1931 has been a remarkable achievement. A phase of exhaustion of capital funds followed the Great War, and this weakened the industry to such an extent that the ensuing depression reduced the output of steel in 1931 to 5,250,000 tons. The imposition of import duties on iron and steel helped the industry to rally and as a consequence iron and steel imports sank from 3,000 000 tons in 1931 to 1,000,000 tons in 1933, the dectease in imports ' being made up by supplies from the industry at home. But increased tariffs in themselves provide no permanent remedy, as the British industry itself was quick to realize; and in 1934 the industry found salvation in co-operation through the British Iron, and Steel Federation, formedwithin the industry to provide a collective voice and to standardize prices. The federation is open without compulsion to all firms engaged in the iron and steel trade, and its system of allowing discount to external firms dealing only with members of the federation has proved a great inducement to membership. The wise policy of the federation has succeeded in standardizing prices at a level lower than the European average, and this, helped by the tariff system, the rearmament programme, and the increased individual efficiency developed by firms during the previous lean years, has ushered in a new era of prosperity. , The rehabilitation of the industry may be judged from the fact that steel production has leaped from the depression year output of 5,250,000 tons to 13,000,000 tons in 1937, and that in the eight years following 1929 the total sales of British hoop and strip steel have increased bv 9b per cent MINING BUNDI DREDGE (United Press Association) GREYMOUTH, November 28. The Bundi Company’s dredge was working 85 hours, treating' 14,356 cubic yards for 690 z of smelted gold. GILLESPIE’S BEACH (United Press Association) DUNEDIN, November 28. The Gillespie’s Beach return was 320 z 9dwt for 130 hours’ work on 16,778 yards. BLACKBALL CREEK (United Press Association) GREYMOUTH, November 28. The Blackball Creek dredge return was 68oz from 11,000 yards for 115 hours’ work. OKARITO ' (United Press Association) DUNEDIN, November 28. The Okarito wash-up was 470 z lldwt for 189 hours’ work. MATAKI (United Press Association) AUCKLAND. November 28. The Mataki return for the week ended November 27 was 50oz for 132 hours’ work and 8300 yards. COMPANY NEWS HUME STEEL LTD. (United Press Association) WELLINGTON, November 28. The Stock Exchange Association has received the following cabled advice: Hume Steel Ltd.’s net profit for the year ended September 30 was £41,702 after providing for taxation. The directors recommend a preference dividend for the half-year of 7j per cent, per annum. QUIET IN LONDON BUTTER SLIGHTLY MORE ACTIVE LONDON, November 27. Commodities are quiet, politics damping speculation. The general index of business activity is about 104—about the level of April. Butter is slightly more active, but buyers are resisting efforts to lift prices. The cold store stocks are 858,000 boxes, which is 71,000 lower than last week, but still double last year. Some holders are willing to take lower prices, tending to keep the market easy. Quotations: New Zealand, 103/- to 104/-; Australian, 100/-. ' Cheese is very quiet.