BRITISH TRADE

Hokitika Guardian, 2 December 1930, Page 5

BRITISH TRADE

FORTNIGHTLY’ REVIEW.

DULL CONDITIONS ON STOCK EXCHANGE.

LONDON, November 29,

Dullness reigns over the Stock Exchange. Business in most sections is on a small scale, but prices generally have been maintained. The outflow of gold to France has temporarily arrested the improvement in British funds, but these remain in good demand.

Further evidence that there is plenty of money available for investment may be found in the heavy oversubscription of the issue by the Central Electricity. Board of £6,000,000 4£ per cent, stock at 95U Although this is not a trustee stock, and yields less than fif per cent., it was subscribed more than tenfold in a few minutes. Applicants only received about 6 or 7 per cent of the amount applied for. DIRECTOR’S FEES. The action of the directors of the London, Midland and Scottish Railway in reducing their fees by 25 per cent, is likely to be followed, though perhaps not to the same extent, by the three other great railway groups which will submit proposals regarding directors’ fees at meetings early in 1931. Although the aetfiali saving ‘in the case* of the L.M.S. only amount to £8750 a year, and if the othbr groups also reduce by 25 per cent, the total reduction will oiiljHiti I about 4“s»QOOthe •;step meets with general public approval Tor.it Is taken as an indication that railway economies will be from top to bottom, add I that the lowly-paid workers will not be ’the only sufferers, BELFAST YARDS CLOSING. This Christmas is nofc likely to be a merry one for a large number of workers iu Belfast for Workman Clark, Ltd. announce the closing down of their great shipyard there for two months, from December 20. They are hopeful that the point of the depression has now been passed, and that, with the turn of the year, freight markets and shipping geneally will show such improvement. that, . not only will the vessels in . hand be required immediately, but . also that fresh orders will be forthcoming. , WOOL TRADE, Regarding the wool position; - the * i correspondent of the: “Yorkshire Observer’ ’ says: “A Hardening tendency > has been notified at the London sale®, -t and merinoft are altogether in a stead- > er condition than crossbreds.- The cheapness of the finer wools has. so increased the consumptive demand and actual manufacturing output that renewed vitality has been created. In this section of the industry confidence has returned, and values have been ■ established ,on a firmer foundation, but there is weakness in the ...crossbred section, which was drastically demonstrated when the New Zealand sales opened in Auckland. The opinion at Bradford, however, is consolidated around, the idea that the improvement will eventually be general. It is argued, apparently with some t, reasonable justification, that, provided the consumption of merinos 'continues, the finer grades of wool will aprec.iate, iand, as a necessary correotive to an excessive rise in ' con-' sumption, will spread to those lower down on the scale.” DAIRY PRODUCE.

Thei butter market has gone from bad to worse. Prices declined about six shillings this wee,k, due to heavy arrivals, both actual and prospective which make holders nervous and inclined to press sales, both of cold-stored stocks and fresh-landed goods. Consumption is well maintained, thanks to the low retail prices, but it does not show expansion. Cheese also has an unsatisfactory market, and, although the price has been lowered about five shillings, the demand is slow., Canada is offering the remainder of its make for shipment a.f low prices, so it seems that there is no prospect of any improvement in New Zealand. and Australian. STATE OF TR ADE.

The “Economist,” in its monthly review, says: “Current indicators of. the state of trade have lately become a little more conflicting .than earlier, in the autumn. This, on the whole, is a good sign, for it means that one or two sporadic rays of light have begun to penetrate the general depression, 'le summarise the good und bad signs. Among the former was sonie slight improvement over the previous months, shown by the October trade returns, greater stability of some wholesale prices since October, an improvement in the tone and employment of most of the textile trades. The bad signs include poor October iron and' stee; production figures, an increase in unemployment in the heavy industries, and more uncertainty over the coal and railway wage negotiations. To these must be added such adverse foreign developments as the recent French and American bank failures, and the further break in wheat prices.” \