BRITISH TRADE

Hokitika Guardian, 23 April 1930, Page 3

BRITISH TRADE

FORTNIGHTLY? REVIEW

THE BUDGET AND THE STOCK

EACHANGE

[United Press^ Association. —By Electric

Telegraph.—Copyright. J

LONDON, April 19

The Stock Exchange broke up for the Easter holidays in a fairly cheerful frame of. mind, the general,. opinion being that the Budget, though unfavourably effecting the gilt-edged market by reason of .the higher, income tax and super tax, might have been much worse. The absence of additional taxation on petrol, gramophone records and tobacco, which had been feared, is expected to lead to increased activity in industrials when business is resumed on Tuesday.

The undertone of the Stock Exchange is generally good. Money is cheap and the arrival of yet another million sovereigns frrm Australia has had a good effect. Discussing the position, a member of the Stock Exchange, writing in the “Morning Post.” says: “It may take a little time for confidence to return sufficiently to bring money into tlie Stock Exchange, hut there can Ire little doubt as to the certainty'of its coming into the markets, if only by reason of the low rate of. interest offered by banks on deposits. The effect of the Budget is too near at hand for stocks and shares to receive any great assistance, but' there is considered to be reasonable ground for expecting a greater measure off public attention being directed towards the Stock Exchange markets later.’’

AUSTRALIAN BANKING.

Commenting on the Australian trading banks’ opposition to the reserve bank proposals, the “Statist” says: “It is important to the Commonealth’s future that each step taken should be most carefully considered. Tlie most advisable course to take would be tho setting up of an independent commission of experts to consider the problem, make recommendations regarding the creation of a ;new hank qnd the future of the .Commonwealth Blank. The result of an investigation, like that which preceded , the creation of ; .the South African Reserve Bank, would be far .more likely to strike an . equable balance between; the various, interests affected, and lead to a sound central bank commanding the respect and loyalty of the trading banks than a reserve- bank forced upon the banking community by. political compulsion.”

DAIRY PRODUCE

The lower retail prices of Australian and New Zealand butter, 14d to 16d per pound, now ruling all over the country, have had the effect of materially increasing consumption, and have brought about a better tone in tho wholesale market, which this week lias shown a recovery of from Is to 2s from last week’s depressed level. It is hoped that consumption will continue to expand, but the statictical position does not appear promising. 'Stocks Iti cold storage- here have been steadily accumulating for some time

past. It is estimated that they nenv amount to about 16,500 tons, without stocks in private stores. In addition to this large quantity in England, cold store stocks in New Zealand at tho end of Marchpvere 14,560 tons, so that although the quantities afloat from Australia are less than a year ago, avo are faced with the prospect of heavy supplies for some time. In these circumstances importers are liy no means optimistic regarding the future. Tho cheese position is more hopeful. With a good demand prices recovered about 4s per ewt, and Avitli the approach of summer consumption may he expected to improve.

WOOLLEN TRADE DISPUTE.

According to the Bradford correspondent of the “Yorkshire Observer.”, the stoppages of machinery has been far from as complete as was at one time feared. A considerable number of operatives are still Avorlring and there is consequently a fajr consumption of wool. What is more, indications encourage the employers to believe that the dispute will not bo of long duration, so far as the great majority of the Avorkers are concerned, because more and more over-lookers have begun to question the' wisdom of challenging tho recommendations of the Court of Inquiry, and are steadily drifting hack to work on the Macmillan rate of AAmges. It is hoped, therefore, in tho very near future, that Hie ordinary course of trading Avill he resumed.