FINANCE AND COMMERCE

Hokitika Guardian, 30 December 1931, Page 7

FINANCE AND COMMERCE

FORTNIGHTLY REVIEW. AUSTRALIAN ISSUES SHOW FIRMNESS. LONDON, December 26. Tlie Stock Exchange broke up for the holidays in a fairly cheerful mood for, though business in all “sections has been small, theie had been a marked improvement in British funds, chiefly due to the firmness of sterling. The result of the election had little effect on the prices of Australian stocks, for they recovered considerably before the polling day, the Exchange having anticipated a National success, though the size of the majority exceeded even the most sanguine expectations. Financial writers generally forecast an improvement, after the turn of the year, many drawing attention to the steady recovery from a. precarious position and publishing tables showing how a number of Commonwealth Stocks had improved by £2O to £2B from the lowest mark touched in 1931. Attention is also called to the possibilities of profitable buying of Australian bank shares, several of which already have risen well. The Writers argue that now Australia has a sound Government the companies connected with finance are likely to be the first to benefit from the change of politics, BRITISH TRADE. The “Economist,” in its trade view, is again somewhat depressing. It says: “Three months have elapsed since the British suspension of gold payments and it is becoming clear that the resultant stimulant to British, industry is being neutralised by the curtailment in the volume of world traue. No real permanent benefit has yet materialised. The recent improvement in the iron and steel, industry was only temporary, and business is slipping back to summer’s low level. The absence of any demand for steel products and the disorganisation of Continental industry render progress impossible. The cotton trade has lost part of tne recently gained ground. Labour difficulties at Home, uncertain markets abroad and the Japanese suspension of the gold standard are all hindrances to further recovery. The new British import duties have damped down the foreign demand for raw material, but there are some brighter features. The following industries report progress: Locomotive, motor building, rayon, linen and textile indutries. Unemployment returns for November show improvements in coal mining, glass, tinplate, general engineering, textiles, leather, paper, dock and harbour services and the distribution trades. Against, these, setbacks are recorded In iron and steel, shipbuilding, building and contracting,” FACTORY SITES, A cheering feature, which the “Economist” does not record, is the increasing demand for factory sites in Great Britain, which can only be regarded as indicating an improvement of business. The London Chamber of Commerce reports receiving numerous inquiries and a firm of estate agents says that, in 1931, it received far greater demand for factories than in previous years. Inquiries almost trebled in the last three weeks, partly owing to the suspension of the gold standard and possibilities of new tariffs. The inquires come from Home, Continental, and American manufacturers. PRODUCE MARKETS DEPRESSED. Tlie close of the year sees the markets for most Australian and New Zealand food products depressed. Prices of meat, butter, cheese and eggs are all disappointingly low. The butter decline is not surprising, for total imports for the first eleven months of 1931 were no fewer than d 0,790 tons above those of the corresponding period in 1930. Messrs W. Wed del and Co.’s report, discussing a decline of 20s to 22s per cwt since October 2, said: “Various factors are responsible. The outstanding one is that Denmark, whence come about one third of our supplies, abandoned the gold standard rather earlier than was expected, so that, with heavy arrivals of Australian and New Zealand, ample stocks, fully sufficient for market requirements, have been available from sources not affected by our abandonment of the gold standard. Other factors are the IoW offers for forward shipment from New Zealand and Australia, .particularly the latter, pressure on some of tlie weaker holders to sell current arrivals, and knowledge throughout the trade that the make of both Australia and New Zealand will be comparatively heavy. Hence the bearish position of the market here.”