“THE SLUMP OVER”

Wanganui Chronicle, Volume 74, Issue 229, 28 September 1931, Page 8

“THE SLUMP OVER”

BETTER MARKETS AHEAD RECOVERY WILL BE SLOW [ Per Press Association. ] AUCKLAND, Sept. 26. . “In my opinion there is every indication that the slump is over,” said the president of the Associated Chambers of Commerce, Mr H. T. Merritt, in a considered statement to-day. “Although there probably will not bo a very rapid return to prosperity, the situation as it has developed in England in the last few weeks shows every promise of better markets for New Zealand produce.” There are two outstanding factors leading to his conclusion; first, the almost unanimous trend of opinion in Britain in favour of a universal protective tariff, and second, the fact that the suspension of the gold standard was tantamount to the imposition of a tariff on foreign imports. One effect was that New Zealand’s produce had risen in value as against Denmarks, for example; also foreign buyers would bo able to obtain more of our produce for the same amount of money. Mr Merritt sounded a warning against any tendency to speculate in expectation of a boom. Such an event was still a long way off. Finally, ho said, wo should not insist, with all the influence we could bring to bear, that Britain should .grant prefertial treatment to New Zealand products. BRIGHTER TONE STOCKS IMPROVE. FOLLOWING? ENGLISH RISE AUCKLAND, Sept. 26. A brighter tone existed in commercial circles in Auckland yesterday, and throughout the day the receipt of optimistic messages regarding the condition of the markets in Great Britain was reflected by a more cheerful outlook in the business community. While the uncertainties of the exchange position and the obscurities which necessarily shroud its immediate effects imposed an attitude of caution with regard to foreign importing trade, this was offset to a great extent by a renewal of confidence in the prospects of the New Zealand export trade. The general opinion in the city was that trade in primary products would reap immeasurable benefits from the new conditions. The Auckland Stock Exchange showed a distinctly firmer tone, accompanied by a feeling of buoyancy and an improving market. Prominent Australian stocks were most influenced, particularly those affected by the fluctuations in base met’J and the produce markets. Following the developments in England, there has been a rush among dairy produce merchants to cover immediate requirements, and this has resulted in an improvement of 6s to 7s a cwt. to the price of butter during the week. The position is now quieter at the advanced prices.