BRITISH TRADE

Hokitika Guardian, 8 April 1931, Page 6

BRITISH TRADE

FAVOURABLE FACTORS ON STOCK EXCHANGE

[United Prfiaß Association. —Bj Electrio TeJegrapii.—Copyright.]

LONDON, April 1

The Stock Exchange broke up lor the Easter holidays in a much more cheerful frame of mind than seemed likely a. week ago, when the gilt-edged market was upset by Mr Lang’s repudiation threats. Last week’s satisfactory news from Australia about Wednesday's payments of interest on New South Wales stocks, however, had an immediate and salutary effect and prices improved all round, though business was not extensive. Further incentives to “bullishness” were found in the fact that the Budget deficit will not be so large as at one time was feared, also the improvement in the gold position and large dividend disbursements on April 1. Yet another good factor was the revival of hopes that the Chancellor of the Exchequer will find it possible to carry through a successful war loan conversion scheme before the end of

the year. Industrial shares have had to bear . the brunt of several unpleasant shocks lately, notably the poor trading reports . of important companies like the Onnard Line, and United Molasses, Limited. The latter had a disastrous year, showing a debit balance of £913.000, compared with a profit of £972,000 the previous year. Tobacco shares also reacted on expectations that the Budget would impose an additional duty, and rubbers wore weak in price. Despite all these unfavourable influences there has been no great pressure to sell. The tone of the market was quietly hopeful. BUTTER. With heavy quantities of butter coming forward from Australia and New Zealand, while Continental production was increasing, prices of all descriptions moved in buyers’ favour, and it seems likely that they will go still lower. Danish was particularly weak, its price having fallen 31s a cwt since February 14th. Commenting on the position the newspaper “The Grocer” says: “Various reasons are put forward for the decline, but it is difficult to assign the real cause. It has been suggested that there is some pressure to sell colonial butter by holders who bought cheaply on c.i.f. terms. The demand for Easter requirements, both here and on the Continent, bias been below expectations also, and may be attributable to the had trade generally, or to the fact that the supplies exceed requirements.” One satisfactory aspect of the market | is the fact that consumption for some ' months bias been oir a very huge scale, thanks largely to the cheap retail prices. Stocks in cold store on March 31 were estimated to total 290.727 boxes compared with 622,018 boxes a year ago. WOOL TRADE. Regarding the wool position the Bradford correspondent of the “Yorkshire Post” writes: “There has been recently more pronounced indications of the determination not to follow the upward course of wool values until it is easier to secure compensating prices for yarns and piece goods. There is a limit to the power of raw material to dictate prices, and it is felt that for the time being it has largely exhausted itself. In this respect the excitement in the raw material market in the last fow weeks has not been carried into the piece goods department, and it is I surprising indeed to what a restricted extent there has been any response by purchasers of fully-manufactured materials to the rapid advance of wool, particularly finer qualities. The total volume of business in piece goods lias not developed as on.e might have imagined from the recent scramble for wool, and competition for a share of what was given out has been so keen that makers-up and piece merchants have not found it necessary to pay more than a. very small percentage of the increased cost of the raw material.”

ALLEG ED OVERAS URSC'R.fPT f ONS. During the company-promoting hooni in 1928-29, when the shares of many more or less “bubble” companies wore foisted on an unsuspecting public, it wa-s a common thing to announce thal issues were over-subscribed, on which really the public response bad been small. Such lying announcements will be impossible in future, as the Advertisers’ Association lias arranged with editors to refuse over-subscription announcements unless accompanied by a. statutory declaration signed by the director and secretary of the issuing company stating that applications have exceeded the number of shares available for allotment and were accompanied by appropriate remittances.