MORE ACTIVE MARKET

Sun (Auckland), Volume IV, Issue 1077, 15 September 1930, Page 11

MORE ACTIVE MARKET

TRADE REVIVAL COMING IN NEAR FUTURE LITTLE UNCERTAINTY STILL Reed. 9.5 a.m. LONDON, Sunday. Although the markets are still retaining the past fortnight’s renewed activity, they are somewhat dampened by the record low level of rubberNevertheless well-informed opinion says their eventual recovery is certain, perhaps more quickly than is at present anticipated. It must not be forgotten, however, that similar advice was tendered from the same quarters six months ago, with the unhappiest resmts. From this it may be assumed that nobody really knows whether the bottom is yet reached. Heavy buying in rubbers occurred on Friday, largely by substantial interests who are presumably prepared to hold on indefinitely. The financial Press is favourable in its comments on the Commonwealth Bank report, which, while not underestimating the gravity of Australia’s present economic problems, does not hesitate to stress the enormous potentialities. The “Financial Times” especially eulogises the bank’s sound work of mobilising the London funds to meet the annual interest charges and its readiness to create a gold and exchange reserve despite the temptations of less sound policies. Despite the still unsettled position of India, and the trade slump generally, there is a definite impression that the cotton trade there has passed over the worst period and it may be expected gradually to regain at least part of its former prosperity. Prices have now apparently reached levels at which merchants are not prepared to hold off any longer. Many mills are quietly booking orders a long way ahead and arranging to restart looms which have been idle since 1924. Substantial inquiries are emanating from India, China and Japan, while the Home market is definitely more interested in cotton piecegoods than for a long time past.