BRITISH MARKETS

Wanganui Chronicle, Volume 77, Issue 77, 2 April 1934, Page 7

BRITISH MARKETS

COMMERCIAL SUMMARY ERA OF CHEAP MONEY IMPROVEMENT IN BUSINESS By Telegraph—Press Association— Copyright) Received April 1, 6.30 p.m. LONDON, March 31. The Stock Exchange closed fur Easter in a cheerful mood, fur though business was restricted by the approach of the holidavy, the favourable tendency which developed in the markets last week was fully maintained. Giltedgeds especiaJl were firm, including Australians, for which the demand was very keen. Leading industrials also were well supported, and a» one financial writer says: “The Exchange is particularly pleased with the way the general price advance has been consolidated, and looks forward to a further stimulus from improving business, the favourable budget, and a continuance of cheap money.” There is a general impression that money is likely to remain cheap for some time, and it is predicted in certain quarters that British Government credit will attain a 2j per cent, basis before the period of cheap money terminates. Discussing this subject, the Spectator’s financial editor says: “It is impossible not to be impressed with the likely continuance of cheap money for a considerable time. There may be an influence from time to time calculated to offset the effects of cheap money, and occasional setbacks to giltedged securities, such as a general election in which there are apprehensions of a Socialist victory, or any serious war alarms, but apart from such political influences, watchers for signs of a change in monetary conditions should look for the first signs of a definite return by Britain and America to a really workable gold standard, because from that moment there must be limits to the policy of the various governments in the matter of favouring abnormally cheap money rates. Another point for watchers is the first indication of any ‘coming together by the nations for removing tariff barriers, because a real revival of international trade would sooner or later make itself felt on the value of money.” How the trade of London has increased during the last quarter of a century, is shown in the report of the Port of London Authority, which, today is celebrating the twenty-fifth anniversary of its formation. In 1909 the total net registered tonnage of vessels arriving and departing from the port amounted to 38,510,989 tons. In 1933 the tonnage was 56,480,004 tons. The total weight of goods imported and exported from London in 1933 was 35,870,004 tons. The complete statistics of tonnage goods dealt with in 1909 are not available, but particulars of overseas imports show an increase during the 25 years of something like 25 per cent. During this period the Authority spent over £20,000,000 on new works Gorman Wool Ban Yorkshire wool men arc perturbed at the news of Germany’s prohibition, which includes tops and yarns as well as raw wool. The Yorkshire Post says: “This makes the German control scheme of more acute concern for Bradford than at first anticipated. The wool trade interests of Yorkshire have no misgivings on the broad question of Germany’s continued need for wool and they are satisfied that every effort will be forthcoming from that country to finance whatever purchases may. be necessary for the big drive to industrial and export recovery which Germany is now making. It is a fact, moreover, that the projected change in Germany’s import policy comes at a time when most of the season’s wool has been lifted from the first hands. This suggests less liability te disturb values than if it had occurred in the middle of the selling season. The decision to defer the commencement of the London sales meets with general approval here, as it is obviously better for all concerned if these can open when a clearer conception of Germany’s intentions may exist. On the raw wool side, most people feel that there is little cause for concern, as Germany’s own best interests are bound uo with the maximum importation of which she is capable, but that tops and yarn imports are subjected to control seems to call for a review of certain considerations in the exchange of trade hotween the two coun-