BRITISH TRADE

Hokitika Guardian, 27 August 1931, Page 7

BRITISH TRADE

FORTNIGHTLY REVIEW.

BIG STOCKS OF BUTTER HELD.

EXCHANCE BUSINESS SMALL.

LONDON, August 22

Business on tlie Stock Exchange has been hampered by uncertainty regarding the Government’s economy plans and the volume of business pasmig has been small. The different nnelects hav! been affected by the earn us rumours current from time to time regarding the Government’s • intentions Thus gilt-edgeds were disturbed by reports that a tax would be imposed on fixed interest-bearing stocks, but showed some improvement yesterday afternoon, when the rumour spread that the Government might resign. Similarly, industrials like brewery and tobacco shares were dull on the apprehension of the imposition of further duties, while others inclined to improve on the talk of a revenue tariff of 10 per cent.

THE STOCK EXCHANGE. The decision to open the Stock Exchange on Saturdays aroused considerable interest and was freely discussed. The “News-Chronicle’s 0 ' comment is that “the committee; in arriving at this decision at a time when there was not enough business td occupy the depleted staffs in- stock brokers' offices for more than a fraction of the ordinary working day, is making a gesture that will be generally approved and indicates that the Stock Exchange, at this critical stage of the country’s finances, is prepared to do everything possible to facilitate business. There is unlikely to he a material increase in the weekly turnover as a result, hut it will facilitate international transactions. As foreign • bourses generally open on Saturdays, the market here on Saturday will he able to follow Wall -Street’s Friday lead.”

FIDUCIARY ISSUE. The decision to extend arid increase the fiduciary note issue by £15,000,000 for a further three weeks meets with general approval, for though the position .revealed by the bank returns would be quite good in ordinary times, it must" be remembered that world conditions are still very unsettled. As the “Financial Times” says; One indication is that this is leading foreign exchanges to move very little away from gold export points. Just lately the Bank has been gaining gold on the balance, but this has been due mainly to fortuitious arrivals, the repetition of which is either impossible dr by no Means certain, Shipments from South African mines have mostly gone to the Continent, and until the Bank is able once again to [replenish its stocks, either from that source or through appreciation of sterling, the portion must be carefully watched. BUTTER. i The position of the butter market has changed completely, thanks mainly to the improved financial position of Germany, which has enabled that country to resume her buying on a large scale. This has caused a rapid advance in the price of Danish and most other Continental butters. Stocks in Germany are very small and production is decreasing, so it seems probable that German purchases will continue. Demands for colonial butter were active in the early part of the week, but have quietened in the past few days, Prices are steady at the moment, but the prospects are somewhat doubtful, as imports of both Continental and colonial are much above the corresponding period last year, and considerably above the current consumption. Consequently, there has been a big *increa.se in cold store stocks.