BRIGHT OUTLOOK IN BRITAIN

Timaru Herald, Volume CXXXIX, Issue 20107, 14 May 1935, Page 9

BRIGHT OUTLOOK IN BRITAIN

SPIRIT OF JUBILEE ON EXCHANGE WOOL MARKET SHOWS IMPROVEMENT United Press Association—By Electric Telegraph—Copyright (Received May 13, 5.5 p.m.) LONDON, May 11. A writer in a leading financial newspaper says: “Some of the sunlight which illuminated the London Jubilee Day pageantry seems to have penetrated to many corners of the Stock Exchange.” This describes the position accurately, for though business has not been brisk, as the holiday feeling lasted throughout the \Veek, the tone of almost all markets is distinctly good, and yesterday there was a burst of activity in several departments, notably in aircraft shares, which received a stimulus from the Air Ministry’s letter to contractors. All aircraft shares showed good rises. Banking Figures. Average figures of the clearing banks for April afford encouraging evidence of the improvement in business. Total advances by these banks amounted to £744,700,000. This is the highest April figure for nearly two years and is more than £10,000,000 higher than that of January, 1934. The rise is partly seasonal in character, but may be regarded as a real sign of recovery in trade and industry. The financial editor of the “Spectator” contributes a timely article on “Twenty-five Years of British Banking,” in which he mentions that when King George came to the Throne in 1910, total banking deposits of the joint stock banks of England and Wales amounted roughly to £720,000,000, whereas at the end of 1934 the total exceeded £2,000,000,000.

He adds that throughout these 25 years joint stock banks had to stand the strain first of the war, then a short period of superficial prosperity, later the strain occasioned by many years of financial depression and crises in many parts of the world, and finally the political crisis of 1931 and our departure from the gold standard. “Throughout all these crises,” he writes, “confidence in the banks never waned. This point gains importance when it is remembered that the stability of our banks has been a striking contrast from conditions prevailing in other countries, not least in the country which was supposed to benefit most from the Great War, namely, the United States.” The Apple Market. Jubilee celebrations and an influx of hundreds of thousands of visitors to London stimulated the demand for apples and pears, of which consumption this week has been very great. So, although supplies have been heavy, prices have kept steady. As lighter quantities are arriving in the near future, importers are hopeful that the present prices will be maintained, if not improved. Wool Prices Encouraging. The strong opening at the London wool sales, following the firmness in Australian selling centres, has been reflected naturally at Bradford. Topmakers are able to advance quotations. The “Yorkshire Observer” says that what the trade now wants to know is whether the present advance is likely to be maintained. Responsible men in the industry are saying to-day that they see no reason why wool in its present sound position should show any weakness in price between now and the opening of the next Australian selling season. The present keen demand by all wool-using countries, and the fact that the overseas selling season is drawing to a close, with consequent diminishing supplies there, encourage the belief that prices will remain somewhere near the present level. More than one trader, indeed, predicts still dearer wool before the season ends. There seems to be general satisfaction among wool importers and topmakers at the recent advance, which they believe will bring out business which had been held back because buyers had been uncertain about the trend of prices. According to reports there have been inquiries which suggest a buying movement not far off.