The Wanganui Chronicle WEDNESDAY, JUNE 24, 1931. COMMODITY MARKETS REACT

Wanganui Chronicle, Volume 74, Issue 147, 24 June 1931, Page 6

The Wanganui Chronicle WEDNESDAY, JUNE 24, 1931. COMMODITY MARKETS REACT

A.VfK.II A TED yesterday by the ‘Chronicle,” the immediate eJG.-et. J' the Hoover proposal upon the commodity markets of the world would be to lift prices to a higher level. Today’s cable news confirms this, commodity markets reacting favourably even to the suggestion of Air Hoover’s. This is just what Air Hoover is playing for. He wants to introduce the idea to the American mind that it is often good business to forego your bond. The present reaction is, of course, only an anticipatory movement, and it may dissolve should the acceptance of the proposal hang fire. But the market reaction is indeed a fortunate happening because it demonstrates the validity of President Hoover’s thesis. Prance is faced with a Budget deficit and will doubtless endeavour to insist upon payment from Germany of the amount she would have received from that source in excess of the sum payable to Germany. This is a considerable amount and may prove a difficulty in the way of the acceptance of the Hoover proposal. But on the other hand, France has seen her tourist traffic diminish, and she realises that while the depression continues there will be small prospect of people taking trips to Paris. The loss in this direction will have a salutary effect upon French standing upon the bond with Germany, The French will appreciate that it is in their own interest to do everything to revise world demand for their goods and services. These goods and services are of the luxury class in the main, and the decline in demand for them is now acute. The desired demand cannot improve in low price periods, and if there is a convincing demonstration made available that the Hoover proposal will bring higher price levels then it will be helpful indeed in creating a less insular attitude within France itself.