"BRITISH" TRADE

Hokitika Guardian, 25 March 1931, Page 2

"BRITISH" TRADE

FORTNIGHTLY R EYIEAV. MORE, CONFIDENT NOTE ON STOCK EXCHANGE. LONDON, March 21. A quiet, but more confident tone is noticeable on tire Stock Exchange, although business generally is somewhat restricted, owing to (uncertainty as to what the Budget will bring forth. Highclass investment stocks are well quoted, though some Australians have weakened slightly during the last two days, but considering that many of these stocks had recovered by from. 12 to 15 points from the low level of a month ago it was only natural that there should be some, profit taking. This was responsible for the slight set-backs which occurred. The position of Australian stocks is certainly much sounder than at any time since the bogey of repudiation was raised, and timid bold, ers are no longer throwing their stock on the market.

BIG MERGER. The market for industrial shares has been somewhat hesitant, but a burst of activity yesterday followed the announcement of a gramophone merger, and thousands of shaves of the two companies concerned changed hands. This was stimulated by tbo demand for shares from Wall Street and the dosing prices of Columbian was 58s 9d and of Gramophones 53s 9d. As It is believed that the merger will result in such oonsiderable economies that the shares of the new company may eventually he worth 100 s, the rush for thorn was not surprising-

OPTIMISTIC SHIPOWNER. That tin* Stock Exchange takes a more hopeful view ol ihc »:,i .-.ok may bo gathered fioin tin- bxi Mini the number of candidates for membership is well up to the average. Six weeks ago nominations for membership were offered at £220. To-day’s price is about £4OO.

Lord Kirklev, a well-known shipowner, struck an optimistic note in a recent speech at Newcastle. After describing the serious industrial position in Britain lie said: “If these conditions were confined to this country there would be reason to wring our hands and write ‘ichabod’ over the portals, but they are worldwide, and reports from abroad show that the people of Britain are meeting the troubles with more fortitude, efficiency and cheerfulness thijgn some other countries. The position is almost an exact parallel with what happened after the Napoleonic and Franco-German wars. There are far too many Jeremiahs about.” He was satisfied that pluck and grit would see the country through its troubles. Depression was a mental condition, which inevitably hindered people seizing opportunities when world trade made a turn for the better. There were signs that the turn was coming, and Britain must lie ready to take her proper place in the international wrestle for trade.

DAIRY PRODUCE. Butter importers have been unable to maintain prices, and all descriptions have fallen several shillings. The decline is the greatest in Danish, which undoubtedly is feeling the competition of Australian and New Zealand, thanks to the Empire Marketing Board’s efforts to push Empire butters in the north of England. Fine warm weather ia causing a slight increase in production on the Continent, consequently the demand has diminished. Among other causes of the decline are the willingness of some holders of cheaply bought butter to accept a smaller profit, and lower e.i.f offers for shipments from Australia and New Zealand.

FREE STATE TARIFF. Regarding Free State duty mentioned a fortnight ago, the Tariff Commission has recommended a permanent duty of 4d per lb. The Dublin correspondent of the “Economist” says: “The alleged justification for the recommendation is that it will stimulate winter dairying in the Free State, and remedy the old evil of irregular production throughout the year. The immediate effect of the tariff has been to raise the price and cause much dissatisfaction among the consumers in the towns. It is difficult to believe that farmers will be so altruistic as to resist the temptation to cease butter production during the summer for the higher winter price. The Minister of Agriculture has intimated that any such action woiu-i i> ■ :,;| ered a ground for revising ,• |v 1"";.;; the duty, but no machinery has hct-ii provided to prevent it.”