BRITISH FINANCE

Hokitika Guardian, 2 July 1930, Page 5

BRITISH FINANCE

REVIEW O'F ENGLISH CONDITIONS.

LONDON, June 29. The Stock Exchange has safely passed tho last settlement of the halt-

\ear, about which some apprehension was felt, as it was generally known -hat some firms were in rather a difficult position. But their stronger friends gave assistance, and the settlement was carried out without any untoward incident.

ttuiee then the ton© has improved slightly, and during the last few days firmness lias developed in the giltedge market, and the prices of most Br.tish funds have risen, largely as Jio result of cheap money and the strength, of the sterling exchange. In these conditions it is surprising that Australian Government stocks did not show improvement. Many of them at the present prices give exceptionally high yields. For instance, Commonwealth 5 per cents., 1945-85, can be bought at £ ? B6, giving a return of well over sif per cent. Others afford equally good opportunities tor investors, but confidence seems lacking, and until it is restored investors are likely to be few,

High hopes are entertained that Sir Otto Niemoyer's visit to Australia may result in an improvement, but in the meantime Australian stocks meet only a small demand, , THE WOOL SITUATION.

Mr Bernard Tripp, the New Zealand delegate to the conference at Bradford in an interview said he was highly gratified with the result, especially Hie British Wool Federation’s agreement to co-operate in any form of advertising arranged between the Australian and New Zealand growers, in view of the increasing demand. Mr Tripp emphasised the importance of the statement made at the conference that nil the wool now being grown is being sold, and that if, by advertising, they created a greater demand, there would not be enough wool available to satisfy the. demand. Also tnat main difficulty was that while the world wool consumption was larger than it had ever been, the United Kingdom’s consumption was less. Mr Tripp was satisfied with the statistical position of wool, which was very good. Stocks of raw wool here were smaller than for many years past. ... STATE OF TRADE. The “Economist’s” review of the state of trade is- again far from cheerful reading. It says:— “No change for the better lm,s taken place during the past month, and it C'Kinot be said -.that there are any signs of improvement yet in sight. It must be remembered that in previous more fortunate years a. setback in trade usually occurred about May, and lasted until the end of-the summer. Thus, it cold hardly have been expected that the Home trade would have begun to emerge from its depression during the early summer months. A rapid recovery is pretty clearly out of the question, as the harm done by the depression is too deep to be overcome in a tew weeks. But even a slight improvement of no more than usual seasonal dimensions might suffice to raise the spirits of the industrial world, and start the nation on the road to a genuine recovery.”