TRADE IN BRITAIN

Evening Star, Issue 22455, 28 September 1936, Page 9

TRADE IN BRITAIN

MARKETS REMAIN CHEERFUL ACTIVE BUSINESS AND CHEAP MONEY Press Association —By Telegraph—Copyright LONDON, September 26. Despite the fact that'- the situation throughout the week was overshadowed by the shakiness of the franc and the European political outlook, British markets remained cheerful, owing to a continuance of active trade and cheap money. The latter assisted British Government and other gilt-edged stocks to rise strikingly, although the London County Council loan produced a reaction. LOW INTEREST. The ease with which Britain and London were able to borrow at lowinterest has been widely contrasted with the French Government’s closing of the so-called “ Baby ” bonds, owing to the subscriptions only reaching about 4.000. francs when it had been hoped that the small investor would subscribe sufficient to pay off the Treasury s 12.000. francs to the 'Bank of France. Commentators express the opinion that Franco-Spanish events have shaken the French investors’ faith regarding an early return to normality. The devaluation of the franc has been regarded as inevitable for so long that it is generally believed that there has been plenty of time to concert measures in Paris, London, and New York for the purpose of ’ minimising any consequent disturbance. WOOL SALES. Daw-son and Sous, commenting on the wool sales, express the opinion that they should encourage distributors and consumers. The. homo trade’s dominance was chiefly due to the paucity of stocks. Similarly, European reports indicate that combers’ stocks are at the minimum. The chief anxiety regarding the future concerns Japan. It is unfortunate that the Australian-Japanese dispute has not been ameliorated, as it is disastrous to the w-oolgrower. The estimates of Japan’s intended purchases in New Zealand and Montevideo should not be taken too seriously. It would also be premature to assume that the Japanese should change the character of the raw material used for their wellestablished and renowned specialities, of which considerable stocks from last season’s purchases remain. BUTTER AND CHEESE. The butter market is showing a slight improvement in prices. Australian and New Zealand, which had fallen, as low as 965, recovered to 100 s on the resumption of demand. Buyers recently had been holding off while values fell, but they are now coming into the market again, and importers anticipate some improvement in both demand and price. Cheese, as usual, followed butter and closed with a steadier feeling.