BRITISH TRADE

Hokitika Guardian, 5 November 1929, Page 6

BRITISH TRADE

FORTNIGHTLY REVIEW

REMARKABLE SWUNG ON STOCK EXCHANGE.

(United Press Association—By Electric Telegraph—Copyright;.

LONDON, Nov. 2

This ..week witnessed., one of those spectacular changes, which occasionally occur on the Stock Exchange. Severe depression has set in as a result of the crash in Wall. Street, combined with persistent liquidation from continental centres. Gloom reigned in every section of the Exchange, till the surprise reduction of the Bank rate on Thursday caused a complete, reversion of sentiment,,and brought about general feeling of cheerfulness and optimism. The Bank of England’s unexpectedly prompt i decision was regarded as in- ' dictating confidence regarding the future, and was immediately followed by a general revival in the markets. As a writer in the ‘lnvestor’s Chronicle” says,- “it appeared as if all troubles were forgotten in a moment and the instantaneous effect on prices gave the ‘bears’ very little chance of covering to advantage. It had been (July realised that the breakdown of the ‘bull’ movement in the United States wouldprove a. blessing in disguise, but for a time, this aspect of the situation was overshadowed by the severity of the collapse, which has been unprecedented. Steps were taken by financial, and even by Government, interests to restore confidence, but these did not have the desired effect until prices had reached a level from which there was bound ’to be an upward swing. In Continental sources also, confidence has been restored to some extent, after weeks of depression and forced liquidation. From Stockholm to Vancouver the genuine investor, as well as the ’ speculator, took fright, and, despite many uncomfortable moments, it may be said that on the whole the London Stock Exchange has come through the ordeal much better than could have been anticipated. It is, however, just as well to realise that, much wreckage remains to. be cleared, and that but for the timely relief provided by the Bank rate surprise, the forced liquidation, which was in progress, would have made further serious inroads on quotations.'”

WOOL MARKET. At Bradford the woo! market is showing a decidedly more cheerful tone than of late thanks to some degree, to the reduction of the Bank rate, wlj'ch, will appreciably benefre importers in financing large quantities of wool that have yet to be lifted. The Australian wool-growers’ decision to extend the selling period is meeting with a certain amount of adverse criticism in Bradford.“ For instance the “Yorkshire Post” says: “The det/ision appears to have been taken without any regard for the manner in which the wool textile industry is conducted throughout the world. It seems to imply that Australian growers and selling brokers are.under the impresion than a,n even rate of wool consumption is maintained throughout the year. They ought to know it is not so, because, when some of their representatives were in Bradford two or three months ago, it was pointed out that there were periods when orders were placed freely for partially or fully manufactured goods, and at such