BRITISH TRADE

Hokitika Guardian, 8 September 1931, Page 6

BRITISH TRADE

FORTNICHTLY REVIEW. A PERIOD OF NERVOUSNESS. CO-OPERATIVE SOCIETIES UNDER FIRE. [United Press Association. —By Electne Telegraph.—Copyright.] LONDON, September 5. The financial and political uncertainty continues to dominate the. Stock Exchange, 'and all departments show nervousness, a condition which will prevail until the Government’s financial proposals are announced and we know what “equal sacrifices for all” will entail. British funds, all gilt-edged, have been very susceptible to rumours about increased taxation, and though Wednesday’s announcement had a reassuring effect, the improvement was not maintained. The London and foreign markets have been in a state of depression. German bonds, relapsing in sympathy, marked the reopening of the Berlin Bourse. Brazilians fell heavily on the announcement that sinking funds in Brazilian loans would bt suspended. A LEAN TIME.

An illustration of what a lean time the Stock Exchange is having is afforded by statistics ofj new capital issues compiled by the Midland Bank. During August these amounted to only £1 666,000 compared with six and a half millions in August, 1930. The issues during the first eight months of this year were only £77,766,471 as compared with £164,851,600 in the same period last, year, and £221,346,603 in 1929. 00-OPERATIVEI SOCIETIES. Among the numerous suggestions made to the Primier for, raising revenue is a- proposal to tax the profits and reserves of co-operative societies, which had hitherto'been immune from income taxation. For many years traders have been agitating for the taxation of these co-operative societies, but no Chancellor of the Exchequer lias seen his way to do this, probably through fear tba,t such action would mean a loss of votes; but now a three party Government is in' power, this fear does not exist, and strong representations for the imposition of the tax are being made by the National Chamber of Trade and other bodies notably grocers’ federations. ’ POINTS STRESSED'. Among the points stressed bv the National Chamber of Trade in support of taxation are, first, the enormous de. velopment of co-operative trading, retail, wholesale and manufacturing; secondly, the mutuality of the movement in its earlier days has become so altered by its trading with nonmembers that the reason, for different treatment no longer exists; thirdly, cooperative societies are extending their operations outside their own membership and competing for the custom of the general public by advertising and otherwise, and also that the profits are not distributed to the members, but large sums placed to reserve, appropriated for depreciation, and applied to purposes of propaganda. WHEAT GLUT. The weakness of the wheat markets is explained by a well-known expert who points out that the public holdings of wheat at Liverpool and Birkenhead, the biggest flour milling centres of Europe, totalled at the end of August. approximately 416,000 quarters. In addition huge stocks were held by millers, who will not announce the quantity, but at is believed to be somewhere about 300,000 quarters. The glut in wheat in the world’s markets may lv guaged by the fact that a year ago public holdings were only 106,000. Australian oranges brought by the Barrabool, as anticipated, have not yet found a good market owing to the large supplies from other sources, and there is still a fair portion unsold. The quality of the. fruit earned general praise.