IMPROVED TONE IN BRITAIN

Timaru Herald, Volume CXXXVI, Issue 19091, 25 January 1932, Page 7

IMPROVED TONE IN BRITAIN

EVIDENCED ON STOCK EXCHANGE MARKED REVIVAL IN MANY INDUSTRIES. United Press Association- By Electric Telegraph—Copyright (Received January 24, 5.5 p.m.) LONDON, January 23. The improved tOlAe on the Stock Exchange, which marked the opening of the year has been maintained. Prices hardened in most section#. Restored C&nfidoncc. Several factors contributed to make investors more confident, the most notable being the Government’s announcement of the huge income tax payments received in the first sixteen days of January. Another satisfactory feature has been the knowledge that Continental countries are buying considerable quantities of stocks here. The general improvement cn Wall Street also has had a good effect. Yet another good point is the possibility of a reduction of the bank rate at not a far distant data. Upward Movement of Stock?. Gilt edged stocks led the way in the upward movement. Australia being especially strong. New Zealand stocks which hitherto have been rather out of favour are showing large advances, compared with a fortnight ago. It is generally thought the improvement is likely to continue, though maybe profit-making will cause occasional setbacks. An interesting event has been the issue of the first Colonial loan for many months. The Mauritius Governments issue at £500,000 at 5 per cent, due 1951-71, at 98-i, proved so attractive that it was subscribed nearly four times over and is quoted at £l/2/6, premium. Revival in Industry. The wool and textile revival in Yorkshire is spreading according to telegraphs from the Bradford correspondent of the “Daily Telegraph.” There is great activity in West Riding mills, which are engaged in a big effort to supply the Home market with dress goods, and hosiery formerly obtained by advantageously placed Continental competitors. Such is a revolution that occurred in production for the Home market, consequent on our abandoning of the gold standard and the imposition of import duties, that some displaced foreign competitors are making inquiries, either for mills or sites in the Bradford district. French and German visitors are exploring the possibilities of starting the manufacture of light dress goods. One German firm wishes to set up a clothing factory. A Swiss concern is anxious to make art silks in Huddersfield locality, a Dutch undertaking wants a factory near Batley and Dewsbury for the manufacture of carpets, curtains, etc. Butter Market and Tariffs. Germany’s proposal to tax imported butter, caused a slight weakness to develop in the market, but prices have since recovered about 1/-. Importers are still uncertain about what exactly is going to happen, but the general impression is that though Germany’s action may cause the diversion of large quantities of Continental butters to Great Britain, this is not likely to happen for some months. Eight butter exporting countries, including Denmark, Holland and Finland, have between them still 40,000 tons to send to Germany, on the old basis of duty, and it will be several months before this is absorbed. With regard to the question of imposing a tariff on butter, which has been suggested as the best means of preventing unduly hea\y importations, it may be pointed out that the Government’s tariff proposals are understood to exclude food. The suggestion is made that the quota system, might be applied to butter imports. Price of Eggs. The Australian egg season has practically finished, for though there are a few parcels still to arrive, they are very small. Unfortunately the market is most depressed for production. The maintained supplies have been very heavy, consequently the best price obtainable for Australians is 10/- for fifteens, and 10/6 for sixteens, but although the present values are lowest for the season, Australian shippers have not done so badly, thanks to the weeks when sixteens were realising about 16/-. The average results for the season are expected to be about 12/for fourteens, 13/- for fifteens, 14/for sixteens. When the exchange premium is added to those, the pries must be regarded as satisfactory. TRADE IN BRITAIN. FOREIGNERS INQUIRING FOR SITES. British Official Wireless RUGBY, January 23. The London Chamber of Commerce states that many inquiries from foreign manufacturers about factory sites in England continue to be received, and 20 foreign firms have already decided to build here for the production of goods for the English market, affected by the recently imposed Customs duties.

.OTHER SIDE OF THE PICTURE.. HOW IS ARGENTINE TO MEET OBLIGATIONS TO BRITAIN? United Press Association—By Electric Telegraph—Copyright (Received January 24, 5.5 p.m.) LONDON, January 23. A deputation representing the principal financial and commercial interests, directly connected with the Argentia was received to-day by Mr

Runciman (President of the Board of Trade). The deputation suggested, in view of the extensive British interests in the Argentine, that special treatment should be accorded to encourage Anglo - Argentine trade, after provision had been made for Imperial requirements. The committee expressed belief that a plan, under which the Argentine might continue to find a market in Britain, would ensure reciprocal advantages from the Argentine Government.