BRITISH TRADE

Hokitika Guardian, 16 December 1931, Page 6

BRITISH TRADE

FORTNI G HTT/Y REVIEW, STOCK EXCHANGE RECORDS QUICK RECOVERY. [United Press. Association—By Electris Telegraph.—Copyright.) LONDON, December 12. "After several weeks of gloom and depression the Stock Exchange made one of those quick recoveries which are not unusual when good news comes. In this instance the good news was the Chancellor of the Exchequer’s speech on Thursday, in which lie announced emphatic confidence regarding the outcome of the current financial year. This is regarded as a complete ' answer to baleful rumours expressed in foreign newspapers that our Budget would not be balanced and that inflation would be necessary. Mr Neville Chamberlain’s speech showed that nothing of the sort was likely to happen, and the Stock Exchange quickly responded, with the result that British furidg, yesterday had mostly recovered from one and a half to two points.

Mr Chamberlain’s speech was not the only factor contributing to the improvement, for the Stock Exchange saw better hopes of an international agreement of economic and financial matters and the settlement of rue problem of, international debts. Last, but not least, was the firmness of the sterling exchange and the possibility, as a result of the Budget deficit in the United States and the increased taxation. there, that money will start to flow from the dollar and return to the pound sterling. The improvement on the Stock Exchange so far has been confined practically to British funds, but it is hoped that it will soon spread to other section®. RUBBER. There was, however, one market which showed considerable cheerfulness, even before Mr Chamberlain’s speech. This was rubber shares, which hardened all round, following the advance in the price of raw material to 3jd. The improvement is attributable to the belief that the British and Dutch Governments have, or will, shortly come to an agreement tb i«•triet the output. There is at present no confirmation of this, but there is no doubt that negotiations are proceeding. In this connection a firm of rubber brokers writes: “If the present negotiations break down it will mean the ruin of more than half the British rubber-producing companies, and this does not merely mean the entire loss of the capital of the present investors; the estates themselves, with trees in full bearing, would pass to other hands at one-tenth, or less than what they cost the present owners.” PROVISION MARKETS. Reports from all provision markets show a weakening of the demand and mostly lower prices. This applies equally to butters, cheese, bacon, ham® and eggs, all of which the consumer is now able to buy very cheaply. Australian “Kangaroo” butter at a, wholesale price of 104 s a cwt is being retailed in some stores at under a shilling a pound. Eggs, which a fortnight ago were doing so well, had a sharp setback. This is entirely due to the wonderfully warm and unseasonable weather we have been experiencing. There are now large supplies of English eggs available, which are being retailed at twopence each, consequently the demand for Australian and New Zealand eggs has fallen away, and with heavy supplies arriving- the wholesale prices dropped 2s 6d for 120.

Tlie butter position doe® not appear very hopeful, for though Danish Is firm, thanks to the favourable exchange, there has been a decided fall-ing-off in the Home demand for Australian and New Zealand. As arrivals from these countries during December will be considerably larger than last December, and Australian reports mention a continuance of large supplies, importers are inclined to take a somewhat pessimistic view of the outlook.