UNEVEN RECOVERY.

Star (Christchurch), Volume LXVI, Issue 20364, 23 July 1934, Page 9

UNEVEN RECOVERY.

Southern Drift of British Industries. FINANCE AND TRADE REVIEW. United Press Assn. —By Electric Telegraph Copyright. LONDON, July 21. With the approach of the summer holiday season, the Stock Exchange is getting into a somewhat lethargic condition. but prices generally are well maintained despite the lack of business, gilt edges especially showing firmness. Industrials are also mostly steady, but; aircraft company shares,, which were recently active, suffered a reaction following Mr Baldwin’s statement that I the Royal Air Force would be increased by 492 machines, for it had been hoped that orders would be placed for thrice that number. Industrial Recovery. An article in the “Westminster Bank Review,” dealing with the industrial recover}’ of Great Britain, describes how unevenly the recovery has been spread in different areas and different industries. Thus the south and midlands of England fared better than the north of England, Scotland and Wales The greater basic industries have been worse hit than the newer industries.; particularly those catering principally! for home consumption. The greater in-1 tensity of unemployment in the north; of England and Scotland is partly re-i fleeted in the “southern drift” of British industry. There is a tendency for new| industries to settle in the Midlands and south, rather than the north. Various causes have accounted for this, but it is reasonable to assume that the high local rates which are inevitable in ' poverty-stricken areas, have helped] divert new industries elsewhere, so that the very intensity of the unemployment in the most depressed areas has been an obstacle to its relief by natural methods. The article concludes: “In some quarters it is questioned whether the recovery movement has not attained its zenith, and whether the limit of the expansion of ,the home market has not been reached. Whatever the answer to the second question, it seems inevitable that a time will come when that point will have been reached, and unless a substantial enlargement and broadening of the export trade has been achieved meanwhile some reaction must be expected, with an adverse effect on the employment figures. It is only through increased export trade that the obstinate problem of unemployment will be solved.” Improved Apple Prices.

The Australian and New Zealand apple season is drawing to a close. It seems likely to finish much better than appeared probable a few weeks ago. There are only about half a dozen cargoes still to arrive, and as the demand continues active, importers are hopeful that recent improvement in prices will be maintained. The demand for all hard sorts is now very good. Buyers are apparently storing for use until the home grown fruits come on the market. The German market this season is far less satisfactory than in 1933, which is not surprising as the imports to Germany amounted to 955,700 boxes, about double the quantity received last year. Consequently prices throughout are considerably lower. The average will probably be several shillings a case below 1933. Regarding the future, a firm of Hamburg fruitbrokers writes: Unless Germany’s foreign trade shows considerable improvement by the next season, there appears to be little prospect of importing Australian apples on the same scale as before. There is a tendency to reorganise German imports on a basis taking recognition of whether the country of origin is a liability or an asset in the German trade balance. Unfortunately, Australia is heavilv on the liability side with its large exports of wool, apples, etc. It therefore will be in the interests of both Australia and Germany if every effort is made to secure closer co-operation between the two countries with a view to establishing a more equitable trade balance, for loss of the German market as an outlet for apples will inflict severe hardship on the Australian grower.” Dairy Produce.

The butter market is still suffering from the enormous weight of supplies, the stocks in cold store having risen to 1,732,750 boxes. Consequently there is a shortage of cold storage space. This has led to forced sales of large quantities arriving from the Baltic provinces, with a depressing effect on all prices. Fortunately, the consumptive demand is very strong, and as the retail price of the dominions butter is now' eightpence to tenpence per lb. traders expect the consumption to expand still further. EXCHANGE RATES. 1 LONDON QUOTATIONS. (Received July 23, 12.30 p.m.) RUGBY, July 21.

Local Dollar Values. Current dollar exchanges as quoted toy the New Zealand banks are as under:—. _ , . Buying. Selling-. Cnited States 5.14 4.!) Canada 5.07 4.57

It seldom pa vs to take the lowerpriced article offered you in place ol the advertised line that you ask for. Tf it reallv were ‘ rust as good,” it would be advertised too. 1

London, on the Cities mentioned:— To the £ July 21 July 20 Par. New York (doi.) 4.86 2-3 5.045 5.045 Montreal (doi.) 4.86 2-3 4.972 4.975 Paiis (fr.) 124.21 76 7-32 76 7-32 Brussels (beiga) - .15 21.63 21.625 Geneva (fr.) 25.225. 15.48 15.4 C, Amsterdam (ft.) 12.107 7.46 7.451 Milan (lire) 02. 16 58-27-32 58 lh- A > Berlin (marks) 20.43 12.055 12.055 Stockholm (kr.) 18.150 10.305 10.395 Copenhagen (kr.) 18.150 22.395 22.39 5 Oslo (kr.) 18.150 10.00.’. 19.8'‘~ Vienna (sch.) C4.5S5 27 27 Prague (krone) 164 1 1215 12.., Helsingfors (f. marks) 105.23 226:} 2261 Madrid (pes.) 25.225 86 15-1.6 86; Lisbon (esc.) 110 11PJ 110.5 Athens (di'iich) 375 5251 525 + Bucharest (lei) 813.6 505 503 Belgrade (dinars) 276.32 — 221 Rio de Janeiro (d. to mils) 5.S99 4 51 4 it Buenos Aires (d. to peso) 47.62 36if 36Jf Montevideo (d. to peso) 51 3S2t 3.8 2 Batavia (florins) 12.11 — 7.44 Value in Pence. Par. d. d. Bombay (rupee) lSd 18 1-64 IS 3-6 4 Shanghai (doi.) •" 16i 16 3-16 Hong Kong (doi.) * 175 175 Yokohama (yen) 24.58d 1 4J 145 * Pence per local unit. t Sellers.