TREND OF BRITISH TRADE

Taranaki Daily News, 25 August 1931, Page 9

TREND OF BRITISH TRADE

j CRISIS UPSETS MARKETS INDUSTRY AWAITS SOLUTION EXTENSION OF NOTE ISSUE BANK’S SLIGHT GOLD GAIN By Telegraph— Press Assn.—Copyright London, Aug. 22. Business on the Stock Exchange has been hampered by the uncertainty regarding the Government’s economy plans, and the volume of business passing is small. The markets are affected by the various rumours current from time to time regarding the Government’s intentions. Gilt-edged securities were disturbed by reports that a tax would be imposed on fixed interest bearing stocks, but they showed some improvement yesterday afternoon, when a rumour spread that the Government might resign. Similarly industrials, like brewery and tobacco shares, were dull' on- the apprehension of the imposition of further duties, while others were inclined to improve on talk of a revenue tariff of 10 per cent. The decision to open the Stock Exchange on Saturdays aroused considerable interest and was freely discussed. The Chronicle's comment is: “The committee ,in arriving at this decision at a time when there is not enough business to occupy the depleted staffs in stock brokers’ offices more than a fraction of the ordinary working day is making a gesture that is generally approved. It indicates that the Stock Exchange at this critical stage of the country’s finances is prepared to do everything possible to facilitate business. There is unlikely to be a material increase in the weekly turnover as the result, but it will facilitate international transactions. As foreign bourses generally open on Saturday, the market here on Saturday will be able to follow Wall Street’s Friday lead.” The decision to extend the increase of the fiduciary note issue by £15,000,000 for a further three weeks meets general approval, for though the position revealed by the bank return would be quite good in ordinary times, “it must be remembered that world, conditions are still very unsettled,” as the Financial Times says. “One indication of this is leading the foreign exchanges to move very little away from the gold export points. Just lately the bank has been gaining gold on balance, but this has been due mainly to fortuitious arrivals, a repetition of. which is either impossible or by no means certain. Shipments from the South African mines have mostly gone to the Continent, and until the bank is able once again to replenish its stocks either from that source or through the appreciation of sterling the position must be carefully watched.”