REPEATED BLOWS

Gisborne Herald, Volume LXVI, Issue 20057, 2 October 1939, Page 8

REPEATED BLOWS

MARKETS IN BRITAIN INDUSTRIALS WEAK REACTION TO BUDGET FEARS OF DEFLATION (Reed. Oct. 2, 1.50 p.m.) LONDON, Oct. 1. Hammered by a succession of blows, including the Budget and the NaziSoviet pact, the stock markets closed weakly. The industrial index is shown in the Financial News shares at a new low level. Few City businessmen object to making the most severe sacrifices or doubt the need for them, but all expected the burdens would be increased firmly but gradually as business expanded. The Investors’ Chronicle points out that the Budget will accentuate defiation. The proposals of the Chancellor of the Exchequer, Sir John Simon, would have been commendable if industry wore going at full strength and the gilt-edged market were functioning normally, but in the existing circumstances the Budget is likely to mean more unemployment and increase the difficulty of raising Government loans. Moreover, the opinion is that when the war gets into full swing Britain will be borrowing around £1,000,000,000 a year. The nation generally would welcome the evidence of less bureaucratic waste which, in the case of the Ministry of Informaetion and the air raid precautions have reached the dimensions of a scandal. British imports of butter in August totalled 972,000 cwt., 3200 tons above July. It is unlikely that further figures will be published. The retail price of Is 7cl per lb has not yet been generally applied, but when it is it will undoubtedly reduce the consumption. There is still plenty of cheese available throughout Britain. The Wool Control Board is reported to be functioning more smoothly, but the cancellation of the Australian sales has been a blow to Australian buying brokers. There is a suggestion that the Control Board will also take over the merchantirtg section of the trade. Merchants are most perturbed and business generally is chill pending the conclusion of negotiations to pfirehose the Australian clip.