BRITISH TRADE

Hokitika Guardian, 19 June 1929, Page 2

BRITISH TRADE

FORTNIGTHLY REVIEW. EFFECTS OF CONSERVATIVE DEFEAT. LONDON, June 15. The Stock Exchange • continues in a state of quiescence, which seems likely to last until something is kijown regarding the new Government’s plan. Meantime prices show little change although gilt-edged are a shade' easier owing to the continued weakness of the sterling-dollar . exchange. When the Conservative Government was turned out a fortnight ago, many people expressed gloomy forebodings regarding what was going to happen on* the Stock Exchange, and there were some who feared a general collapse of prices,'but there is no sign of general uneasiness in the city at the entry of the Labour Government into office. On the contrary, ''as the “Economist” points out, /'confidence rather than other .vise is expresed in most quarters at the personnel of the new Cabinet, ' and those selected for the Department which concern finanoe, commerce and the industrial life are recognised to be-for the most part men of judgment and experience. JBefore the election I '‘.tlia’re Were indications that, if a stalemate position was avoided and the Conservative Government returned public interest in the Stock Exchange might revive, m-U »u other upward- swing ruight g»vlm to British industrial*- Though that has not happened the behaviour of the industrial markets a* a whole afforded no support whatever to the view that money was passing out of the industries into foreign stocks. The only share? that can- be picked out as having suffered by the result of the election are those of companies that would he affected by a removal of safeguarding of the McKenna duties. Dunlop Rubber and a number of motor shares had a set-bapk for that reason and the market in .them : is unpettled; Iron and steel shares have 7 slightly weakened. The disappearance of apy prospect of safeguarding duty might have been expected to put price- lower than they have actually gone, but, on other hand, there is an indeterminate feeling "abroad that the new Government’s plans for providing for unemployment ,especially in connection with the railways, may bring indirect benefit to the heavy industries. A CANADIAN ISSUE. An . interesting feature of the Stock Exchange this week haß been the underwriting of l the City of Montreal loan of £2,149,000 at 4) per cent, at £92 10s. This is said to he first Canadian issue in London sihoe the war, Canada having found New York more favourable as. a borrowing place. The Dominion’s Teturn 'to London is by no means unwelcome, especially as Canada recently. demonstrated its readiness to re-purchase from London stocks and bonds of Canadian municipal and industrial issues. THe flotation of this loan is also regarded as a sign that London has not lost its prestige as the financial centre, and that New York’s attempt to dominate the world’s finances has received a set-back. THE APPLE MARKET. The apple market continues in a very sound position, Australia and New Zealand making excellent prices. The quality of the fruits now arriving is generally good, though some Tas maniau Stunners are showing signs of bitter pit. The firmness of the market is particularly satisfactory, as Am erican shipments are rtill arriving, and, during the lastweek or two, have actually exceeded in volume the arrivals from (Australia. There are still about a dozen more cargoes from Australia and New Zealand to arrive but, as the demand continues good, importers are hopeful that the prices will be~maihtaihed till the end of the season.