BRITAIN’S CHEERY CONFIDENCE

Timaru Herald, Volume CXXXVII, Issue 19682, 27 December 1933, Page 7

BRITAIN’S CHEERY CONFIDENCE

PASSING OF LONG DEPRESSION DEFINITE IMPROVEMENT IN TRADE United Press Association—Bv Electric Telegraph—Copyright LONDON, December 25. The Stock Exchange closed for the Christmas holidays with a feeling of cheerful confidence, a pleasant change indeed from the previous four Christmases, in all of which the depression was a marked feature. Now conditions are very different and as one financial writer says, investors are backing recovery in no uncertain fashion, and the Stock Exchange will celebrate the Christmas with a knowledge that 1933, from the British viewpoint, had given unmistakable signs that the slump is ending. A comparison of prices yesterday with those of Christmas Eve, 1932, shows striking gains. Some tea shares have trebled in value; many rubber shares have doubled, and other sections show substantial, If less spectacular, rises. Optimism of Investors. Another writer says that during the past few weeks the natural caution of the city had been overcome by the optimism of investors who had been quite determined buyers of shares at prices which, to the city mind, were rather too high. Investors undoubtedly, made the rising markets in spite of the fact that many of their brokers were advising them to close down until the holidays were over. A barometer of British industrial ordinary shares, compiled by the "Evening Standard,” reached a new high record level. Taking the average prices of 1930 as 100, the barometer now stands at 101.5, which is over 10 points higher than at the beginning of the year.

Rises In textile, home railway, iron, steel and electricity supply shares were mainly responsilble for the latest rise. Business On Upgrade. A striking illustration of the business illustration of the business improvement is afforded by the "Economist,” which, in November, received reports of 185 industrial companies, which show an aggregate rise in profits of 79 per cent, compared with the previous year. Their net profits this year was £8,132,162, compared with £3,970,155 last year. This remarkable increase is primarily due to the greatly improved results of motor cycle, shipping and textile sections. The Improvement in shipping is worth notice, five companies showing a profit of £511,495 compared with a debit of £48,336. Brewery profits show a slight increase, while the rubber losses have almost been converted to profits. Improvements are also shown by tea and telegraph companies, but the investment trust earnings declined. Another sign of reviving prosper, ty has been shown by the crowds shopping throughout the country, and the verdict of shopkeepers is that more money was spent this Christmas than in any year since before the war. London’s big stores had record sales, with far more customers spending mere freely. There are similar reports from the provinces. The British toy industry enjoyed the most successful season in its history, in spite of large Imports from abroad.