BRITISH TRADE.

Waikato Times, Volume 109, Issue 18343, 1 June 1931, Page 7

BRITISH TRADE.

PESSIMISTIC NOTE. CONFIDENCE STILL LACKING. ATMOSPHERE NOT HEALTHY, United Press Assn. —Elec. Tel. Copyright. (Received June 1, 9.30 a.m.) LONDON, May 31. Reviewing the state of trade at home and abroad, the Economist says that during the past few weeks the business situation has disappointed all the hopes of Improvement which were entertained earlier in the year. The plain truth Is that confidence is still lacking and the business world is still waiting for something favourable to turn up either in the political or financial sphere. That Is by no means a healthy atmosphere, especially when It is remembered that industrialists are already fully appreciative of their esoape from further taxation in the recent budget. By itself the bank rate has proved of little direct assistance, and it is doubtful if it has reduoed the rate charges on bank loans to more than a very sihall minority of borrowers. It has, however, brought nearer the possibility of dealing with the 5 per cent, war loan, and taking a long view of the substantial conversion operation, which placed! the national debt upon a 4 per oent. basis, would eventually result in driving more long-term capital into Industry, and so bring about a general reduction In fixed Interest rates. Here, however, the question of confidence again arises. No doubt the recent strength of 'British Government securities was largely due to the reluctance of the investor to venture on savings elsewhere.