London Markets Quiet

Hawke's Bay Herald-Tribune, Issue 114, 31 May 1937, Page 7

London Markets Quiet

-Press As»n.

1,1 111 . ■ — EFFECT OF DEFENCE TAX Move to Oppose The Finance Bill WORLD TRADE IMPROVES

(By 1'elegraph-

— Chpyrittbt.)

(Received 31, 1.30 p.m.) London, M&y 30. It is scafcely exaggeration to say that the stock markets might well be closed, as business is so Slender. The revised version of the defence contribution tax clauses has xobbed them of every Bhred of interest. Meanwhile the forces against the tax are massing. The Conservative motion for the rejection of the Finance Bill is unlikely to be carried, as it would mean the overthrow of the Government, but it is hoped that the fact that an infiuential section of the party has taken this extreme course will impress the Prime Minister, Mr. Neville Chamberlain. . The attack is likely to be supported from all sections of the House. Even Labour members who favour taxation on profits consider that the defence contribution is an extremely clumsy way of doing so. Commodities are also quiet. They have shown a tendency to drift downwards in the absence of speculative interest. Eariy summer is normally ' quiet, so any marked tevival in the near future is improbable. Rubber especially is disappointing in view of the strong statistical position of Malayan production for April, which is well down when eompared with March. Butter is lifeless. It has largely maintained its present values, though there has been no selling pressure. Whitsun holidays and xepercussions from the bus strike and threatened coal strike led buyers to hold off the market, but some livening interest can now be expected. The Eco'nomist's raview of Ihe state of trade draws attention to the marked reviral in exports which indicates that recovery is proceeding in the right direction. Manufaeturing costs are rising but there are few indications of resistance to higher priecs except in some consumption goods trades. Prospects in nearly all industries remain promising. Building activity is higher than ever, and world industrial activity and international trade continues to expand. The volume of world trade is now only 7£ per cent. helow the 1929 level and is still growing. Raw material-producing countries continuo to gain ground. Industrial production is expanding in Germany, Japan, Belgium and Holland but progress is slow in France.