COMMODITY PRICES

Evening Post, Volume CXVI, Issue 80, 2 October 1933, Page 12

COMMODITY PRICES

RETURNING CONFIDENCE

"A LONG AND THORNY PATH"

United Press Association—By Electric Telegraph—Copyright. : (Received October 2, 10 a.m.) :, LONDON, October 1. ' The Stock Exchange maintains its cheer- ■ '■ ful tone in every department, thanks to n number of favourable influences, not- • ably the good reception to the.new Brit- ' isli Government's Conversion loan and the brilliant success of the Australian Com- - monwealth issue. This is reflected in the firmness ol gUtedged securities. Industrials have benefited by the signing of the Anglo-Argentine Trade Agree- ' ment and the rise in prices o£ numerous 'commodities, notably of rubber, winch 'advanced sharply on the appointment ot the Restriction Committee to collaborate • -with the Dutch. . It is now believed that there is a good chance of the restriction scheme being . enforced next spring. This caused a boom in rubber shares, several of which ..advanced by about 20 per cent, in a ■ week. CONVERSION PROSPECTS. '. Cabled news from Canberra of another Commonwealth conversion loan being pending is not surprising in view ot this ■week's successful operation; but some doubt is expressed as to whether it can be done just yet. It is understood that 'South Africa has prior claim to convert 'about £15,000,000. Also, as the "Morning Post" points out, having regard to the fact that there is a large call of 93 per cent, on the last loan due on October -30, there is something to be said for a pause before the next conversion operation is attempted, especially as so far a« can be seen at present, there is no reason "to anticipate any setback in trustee securities, • . Describing the state of trade, tlie "Economist's"- monthly review says that although the latest evidence of the trend of industrial commercial activity at Home attd abroad remains encouraging, it would be idle to deny that the path to prosperity is still'long and thorny. Nevertheless, it: now seems almost beyond doubt that the trade cycle ie on the iipward , movement and has come through the. holiday period -without any serious mishap. GROUND FOR HOPE. r Progress is slow, and many elements in .the political and economic situation remain obscure, but there is ground' for hope ■in the absence- o£ further .'deterioration. the' United. States, - and -absence of [aggravation of, the ..political difficulties/ ,on the European Continent that the_ improvement in the world economic situation will continue in the near future. ■ The revival of the world's industrial ' activity has been1 accompanied by an improvement in the position of a large 'section of primary producers. With few ■exceptions, the output of industrial raw ■materialr. does hot w now exceed the current consumption at the prevailing level 'of prices. * ! In: many cases stocks which had accumulated in recent years have now •begun to.decliiie.