PASSING THROUGH DULL TIMES.

Timaru Herald, Volume CXXV, Issue 18584, 3 June 1930, Page 9

PASSING THROUGH DULL TIMES.

Stock Exchange Report.

DISAPPOINTING CONDITIONS. (Vmltad Preu Amo: l.tlon B* K.ctr:j Telegraph—Copyright. > LONDON, May 31. The Stock Exchange is passing through a very dull period. There is a complete absence of speculation, and the week Just closed has been one of the quietest experienced for many months. So far as Industrial shares are concerned the only activity has been in gilt edged, which have experienced an increase of business, thanks to cheap money, and the expectations that the bank rate will be lowered in the early future. Many people hoped that the rate would be lowered to 2J per cent, last Thursday, but were disappointed. It is, however, regarded as almost certain that a reduction will come in a week or two.

“The world, as a whole,- Is passing through the throes of a major trade depression,” says th’e '‘Economist’s” monthly review of the state of trade, and reports of other authorities make equally dismal reading. “Lloyd’s Bank Monthly,” for instance, dealing with home trade, says: “Conditions remain generally very disappointing, and unemployment has again Increased. Commodity prices have again fallen during the past month, and until traders have some certainty that the fall has reached its end, they are unlikely to extend commitments.” Only Bright Spot. The only bright spot appears to be the wool market. All the brokers’ reports of wool sales, which closed yesterday, are couched in optimistic vein,, and express the view that confidence has been restored. Thus, the Charles Balme company writes: "From the active, widespread competition, it would appear that the trade has confidence in the future, and it seems reasonable to hope that we shall not see any setback in values during the next few months.” Messrs H. Dawson and Sons write: “The outstanding feature is that practically all medium combing merino wools are meeting the keenest competition. Continental buyers, particularly German and Alsatian spinner, are evidently needing these for immediate requirements, and have been prepared to pay a very solid advance, but Yorkshire has not been able to join in the issue to any large extent' at the new level, which has been established.” It is apparent that the pessimism of the early months of the year has given place to new confidence. Moreover, it is evident that the bogey of heavy surplus supplies at the primary sources, which contributed so much to nervousness in the past season, has been thoroughly laid. Salient factors to be considered may be summed up as follows: Raw material is still at a relatively low basis, and merino wools are finding new outlets. * Stocks in consumers’ hands are generally below normal, and the policy of restricted operations when our market was falling can now be revised, and with the incentive of cheap money, may now encourage replenishing stocks. Anyhow, there is such a renewed confidence in the situation, that one may be justified in looking forward to improved prospects in the industry, although the change has been so remarkable and so rapid that it is still viewed with some nervousness, especially In Yorkshire.

Control of Tin Market. An important step towards the control of the tin output has been taken by the Tin Producers’ Association, in the appointment of a Special Committee to deal with the regulation of output throughout the world. The Committee comprises members representing the Dutch East Indies, Malays, Bolivia, and Nigeria, and a significant feature of its composition is the presence of Dutch Interests, which hitherto have not co-operated with the Tin Producers’ Association.

The four sections represented include the bulk of the world’s tin producers outside the Chinese owned mines in Malaya. . At the first meeting of the Committee it was announced that a complete agreement had been reached on all points