STOCKS RISING

Taranaki Daily News, 29 May 1933, Page 7

STOCKS RISING

IMPROVEMENT IN TRADE BRITAIN MORE OPTIMISTIC ADVANCE IN GILT-EDGEDS STIMULUS FROM THE STATES CONFIDENCE IN INDUSTRY By Telegraph—Press Assn.—Copyright. Rec. 6.30 p.m. London, May 27. The decision of the United States to abandon the gold standard and permit war debts to be paid in paper currency had an instant stimulating effect on the London Stock Exchange. There was a marked revival of gilt-edged stocks, which in the past month have been steadily declining. Yesterday they were very weak owing to the low price at which the weekly issue of 2* per cent, conversion loan was allotted.

This morning’s news brought a rapid recovery. Some British funds advanced over 1 per cent. Earlier in the week there was marked activity in industrials, due partly as the Statist says, to the continued improvement in commodity prices, which has derived its main impulse from developments in. the United States and speculative anticipations regarding the outcome of the World -Economic Conference and partly also from the growth of speculative interest directly due to concrete evidence of a revival in a large number of domestic industries which are chiefly responsible for the return of small investors to the miscellaneous market. Discussing the possibilities =of the forthcoming Australian conversion operations the Investors’ Chronicle says: “British investors must realise what the conversion problem involves. If through the postponement of the date of conversion she should miss the tide Australia will have a legitimate grievance and the Lang Party would have a first-class subject for agitation. If the Lang Party were to return on a wave of resentment it would not be measured by quarter points but by something very much more sweeping.” The Economist’s report on the state of trade is again optimistic. “A noticeable change for the better has occurred in the general tone of 'industrial conditions both at home and abroad,” says the writer. “There is more than politics behind the recovery so far as this country is concerned. The .improvement need not be ascribed to only seasonal causes, especially as May last year witnessed a recession and. not an expansion of trade.” Reports from the - industries show a general slight improvement in forward business. The coal trade appears more hopeful, even though prompt business is dull. There is a much better tone in the heavy industries, accompanied by the receipt of fresh orders for certain sections.

Among the textile trades wool and jute are much better and linen and rayon are also improved. In the cotton industry the rise in prices has proved a distinct stimulus, but the Indian market is still overburdened with heavy stocks, The pottery, leather and boots and shoes trades are all better.