BRITISH TRADE

Hokitika Guardian, 19 November 1932, Page 3

BRITISH TRADE

SLUMP AND RECOVERY. LONDON, November 12. The Stock Exchange had a week of fluctuations and, as tiie “Statist” puts it, “lias given another demonstration of inconsistency.” Opening in a con-j fident mood on the knowledge that the ■ Coiiveision Loan heavily over-sulnscrib-ed the gilt-edge-d market slumped on j Tuesday when the allotments were an-. nounced, and a very large number of , “stags,” who applied lor many times] the amount they could afford to pay for, got aoout twice as much stock as they wanted. The result was that instead of opening at a premium as the “stags” had hoped, stock went to a saia'l.discount. Ic got worse as the week went on till it touched 2 3-8 discount. In the rusu to get rid of commitments which could not be financed, ctner gilt-edged’s including Australians, fell in sympathy, and the conditions on Thursday were decidedly depressing. Yesterday, however, the market cnjjyed a- quick change of sentiment,' cheerfulness replacing depletion; the, general recovery spread to all markets. Liquidation ceased as there was a sharp improvement in the value of sterling in terms of the principal gold currencies, but probably the most potent influence in producing the change of sentiment was the'Government’s. promptitude in sending a Note to Washington regarding the opening of negotiations regarding war debts. This had ?.n immediate reassuring effect, for the City regards the prospect of it satisfactory debt settlement as one more Iwg step towards clearing away obstacles to prosperity. Under tin influence of this chn lgcd feeling, pri< is rallied all-round and the clackna in most of the gilt-edged stock was recovered. The improvement continued to-day. The discount on the Conversion Loan is now only one half per cent.

Hopeful signs of improving business were shown in the Board of Trade October returns, which are generally regarded as most encouraging compared with October* IS3I, when both imports and exports showed large declines, butthe exports this October showed an improvement over September of 16 per. cut., and the highest since April. The increases were mainly in manufactur- : ed goods, notably iron, steel, non-fer-rous metals, vehicles, including locomotives, aircraft, and motor-cars, especially private ones, of which/ the aggregate value increased from £184,400 to £413,100 and number 3190, was dpuble the corresponding total, both of September and a year ago. Australian eggs are selling well at good prices. A satisfactory feature of tlie trade is that a number ol shops are now making special displays. One large Kensington store has a window full with pictorial advertisements at the retail price of 3.sd each. These eggs command a ready sale. The prejudice which formerly existed owing to the age of Australian eggs seems entirely to have disappeared, and they are quite equal to Enropean eggs soiling .at-the 5 same' price.