BUSINESS OUTLOOK IN BRITAIN

Timaru Herald, Volume CXXXVII, Issue 19834, 25 June 1934, Page 9

BUSINESS OUTLOOK IN BRITAIN

CONFIDENT ATTITUDE DISCLOSED

CRITICAL EXAMINATION OF TARIFFS United Press Association —By Electric Telegraph— Copyright (Received June 24, 6.30 p.m.) LONDON, June 23. The South African gold mining shares are still the only section on the stock exchange, showing any considerable amount of activity, but although not much business is doing in other departments, the general tendency has been steady. A satisfactory feature has been the firmness of the giltedged market, all British funds showing good recovery from the recent level. Australian and New Zealand Government stocks have maintained their position. Tariffs and Trade. “The Statist” thus describes the situation: “The general undertone is still fairly firm, while the technical position is such that a moderate revival in investment demand, should quickly be reflected in prices. Confidence in the domestic situation does not show signs of weakening, and as the field for investment is still largely confined to home and empire markets, the accumulation of funds for which employment has to be found, must again make its influence felt. The Southern Rhodesia loan, failed to attract a full subscription, underwriters being left with 35 per cent, of their applications. The stock is quoted at about one per cent, discount.

“The Westminster Bank Review” contains an interesting article on “Trends in Britain’s Overseas Trade.” The paper says: “The recent course of trade suggests that the governmental policy, whether fiscal or monetary, has been less effective in diverting trade into fresh channels, than obstructing it, compared with the curtailment effected in our imports of manufactures, by the general tariff and other duties, the results of the divorce of sterling from gold, of trade pacts, with several foreign countries, or even the Ottawa agreements are slight. If the expansion in manufactured imports seen this year is maintained, they will still be only threequarters of the amount imported in 1931. Quite apart from any diversion of trade, owing to Ottawa duties, proportion of our imports from foreign countries has automatically fallen, owing to duties on manufactures. If we make an allowance for this distinction, the remaining portion will ri.se. The Empire’s share of our overseas trade, amounts only, broadly speaking, to the restoration of the proportion it represented before the collapse of the prices of primary products, temporarily reduced it. On the other hand. Britain’s adoption of tariffs, does not appear to have had the immediate harmful repercussions, on our export trade, which is sharing in the improvement seen in international trade. But by raising still another serious obstacle to international intercourse, the British tariff has played a part in retarding that improvement, and therefore hampering one factor on which the hopes of the full recovery of our own export trade must depend. Butter Market Dull. The recent improvement in butter has not been maintained, and prices have relapsed about 2/-. The reason is not far to seek, the imports in May totalling 903,317 cwts, creating a new monthly record. The Continent generally is in the flush of butter-making season, and the usual European importing countries are still being strictly limited, as regards the amount of butter they are allowed to import. The surplus of all exporting countries must come to England, despite the very low prices ruling. Imports from Russia. Finland. Esthonia. Latvia, Sweden and Denmark, in May amounted to roughly 404.000 cwt, compared with about 312,00 C for May in 1933. The consumption here is still remarkably good, but insufficient to absorb these huge arrivals, and the stocks in cold store have risen to 1,476,831 boxes, an increase of rrore than 300,000 in a fortnight. Market For Fruit. With the arrivals of apples somewhat lighter than recently, prices show a slight improvement. The most, marked were Tasmanian Stunners, packed in Canadian cases, which, in seme instances, were about a shilling dearer. The competition by strawberries has not teen severe, for supplies have been smaller than usual, and they were very dear last week-end. The costers vere asking 16d per lb. and the cheapest seen on barrows has been 8d per lb. Continental srft fruits also have not been in excessive supply, though Italian peaches at Id apiece, have been selling wel.