SLUMP PREVENTION

Hawke's Bay Herald-Tribune, Issue 9, 26 January 1937, Page 11

SLUMP PREVENTION

-PreBs Assn.-

Bankers Hope to Stabilise Prosperity BRITISH TRADE REVIEW

(By Telegr»ph-

-Copyridht.)

LONDON, Jan. 24. Interest at this time of the year alvays centres on the speeches of bank hairmen, who so far agree with economists that it is time to think how prosperity can be stabilised. Mr. E. B. Orme, cliairman of Marwin' s Bank, took the heartening view hat there are no signs of early eessadon of the country's present prosperity, but added a warnlng that the ivoidance of the usual results of tooapid expansion demanded careful at--ention. Mr. Edwin Fisher} chairman of Barlay's Bank, agreed that the .-present position was satisfactory tmt found cause for apprehension in the political ^ituation, the low lovel of exports and .ke height of tariff barriers. Both bankers insist upon the coniiiuance of the policy of stimulating exports ' and international trade and strongly advoeate a return to foreign lending, thdugh they admit that it iB .not easy to iind eredit worthy of the borrowei's. All this talk of how to avoid a slump has probably frigjhtened a lot of tmall investors, thus accounting for a further fall on the gilt-edged market. Thete iB no evidence that the eelling comes from the bankg and insurance companies. Industrials similarly are patchy and Commodities also proved vnlnerable. Bubber shares experienced a steady, though not serious, decline, which was accentuated. by the Ameriean motor industry troubles. The unhealthy speculative position of metals resulted in daily fluctuations -of lead and the price of spelter and copper gyrated even more wildly. Tin, which more than other metals has been affected by the United States auto- - mobile strike, is quiet. * Butter remains erratic, though steadier in tone. There is a puzzling lack of flexibility about the market, which some traders attribute to lack of speculation in overseas varieties as a result of the New Zealand control. Even the news of the damage of 1250 tons at the Melbourne cold etore has not assisted prices. Cheese has slipped badly and there is no prospect of much immediate improvement Eggs are slightly better after a piotracted depression due to Bevere wintry eonditions on the Continent. Nervousness regarding the franc again developed The widening, discount on forward francs is pronounced, due to persistent reports that the French authorities contemplate pegging the frame at 112i instead of 105.