BRITISH TRADE

Hokitika Guardian, 16 July 1930, Page 2

BRITISH TRADE

DISQUIETING RETURNS

lUnited Press Association.—By Electric Telegraph.—Copyright.]

LONDON, July 12-

The June Board of Trad© returns can only lie regarded as disquieting, for they show a decrease of exports for the first six months of the year of sixty-five millions sterling and a decline in imports of sixty-tliree millions compared with the same period of 1929. The outstanding feature of the export trade is the heavy fall in the sale of cotton and woollen goods, of which practically all countries are smaller buyers, especially Germany, France and Eastern countries. Another feature is the reduction in exports, especially ot luxuries to Australia. For instance, the motorcars exported to Australia in June were valued at only £l5O compared with £11,700 in June of 1929. DECLINE IN PRICES. Lord luchape, a.t a meeting of the P. and O. Banking Corporation, gave what may be accepted as the main reason for' the decline in commodity prices when he attributed it to worldwide over-production, particularly of raw and primary materials. He instanced wheat supplies, estimated at 1,500,000.000 bushels, compared with •1,455,000,000 last year, and the world’s visible supply of cotton nas 1,800,000,000 bale;S higher than last year, and argued that until this surplus of supplies over demand is overtaken by the world’s consumptive capacity we cannot. expect to see a stabilisation,of prices sufficient to restore confidence, which had been disturbed by the- severe depreciation that occurred with the trade of the country in this unfortunate condition.

INVESTAIENT SECURITIES

STRONG

It is satisfactory that the tone of the Stock Exchange is confident and investment .securities show considerable strength, British funds especially being in demand and prices tending upward. The rally of Australian Government stocks has been well maintained, and they are meeting good inquiry in some quarters. The improvement is attributed to the bankers’ resolution in favour, of Empire free trade, for the commencement of the rise followed immediately on the publication, of that document, but there is no douibt that the bettei feeling was largely induced by the news of Sir Otto Niemeyer’s visit and the expectation that the discussions with the Commonwealth Prime Minister, Mr Scullin, will lead to improvement in the economic and financial situation. Commenting on what he calls Air Scullin’s ruthless Budget, Sir Otto Niemeyer says that other means may be devised to oh” cum vent the great difficulties that faoeCthe Commonwealth, THE WOOL POSITION. Discussing the wool position, the “Yorkshire Observer’’ takes an optimistic view, and says that before the London sales opened the movement in the buyers’ favour was expected to b© much more drastic than has occurred. Accordingly the effect of the Coleman Street test has been to create a feeling of greater confidence and banish the fear of any marked departure from values. The opinion now is freely expressed that the recent depression and its influences have had comparatively small effect upon that sensitive instrument the Coleman Street saleroom. Its latest record is a distinct encouragement towards the view that wool is all right and may be regarded as having been hammered down as far as it is likely to go at any rate this season.