DEPRESSED BUT SOUND

Hawke's Bay Herald-Tribune, Issue 197, 6 September 1937, Page 7

DEPRESSED BUT SOUND

— Press Assn.-

How British Markets Have Withstood Shocks HIGH NATIONAL INCOME /

(By TeRgraph-

-Copyright.'

(Received 6, 10.15 a.m.) LONDON, Sept. 5. With open warfare in two parts of the world and ruthless submarine piracy in another it 's not surprising that the markets are depressed. The wonder is that they are standing up to the succession of shocks so firmly. They closed a disturbing week comparatively calmly. The technical position remains more than sound, and any real political improvement doubtless will result in sharp rises in every class of security. The JEconomist points out that not one-hundredth of the securities whose prices have been marked down have a direct interest in the Far Eastorn conflict; nor can the domestic business prospect explain the behaviour of the markets and of investors. The News-Chronicle draws attention to the fact that the national income is running higher than ever. Companies, it says, are putting larger sums into re-' serve. New issiies are too few to absorb money seeking investmeot, the weight of which is felt chiefly in the market for gilt edged investments. Gommodities like the stoclc markets, are disappointing. Sogar nas turneed upward for the first time in many months. Cotton has been subject to most violent fluctuations. Rubber closed the week more firmlq. Tho attention of the wool market is now centred on Couth Africa, wffiere the saies are expected to open on September 9. The Oape opens the season in tho strong'st statistical position for years. Tht carry-over is exceptionally low, but outlook is difficult to assess in view of the uncertainty of Japan 's operations. Butter remained steady but featureless clespite attempts to lift ihe prices. Most traders do not expect much change and are of tho opinion that any improvement will be merely temporary.