TRADE REVIEW

Hokitika Guardian, 5 April 1933, Page 3

TRADE REVIEW

A COMMERCIAL SUMMARY

LONDON, April 1

The Stock Exchange reverted to dn 1 1 - np-is, as j (3 usually the case when the ■Budget approaches, and there has 'been a slight reaction in gilt-edgcds from Fie high level reached a fortnight ago. Thi s is largely due to profit-taking soles, which .also caused slight declines 'in some corporation issues,' (but Dominion stocks are holding their own well, there; being a . good demand. The new Commonwealth 4 pefi cents, advanced to £lOl 15s.

There was something of a sensation in the market, caused by the decision jof dealers, in .''Canadian securities to suspend businces in them, owing to th e Canadian Government’s ■proposal! to levy a tax of 5 per cent, on all payments to holders not living ill Canada. Consequently the official price list gives no quotation for Canadian .stocks, the usual figures being replaced by dots. -It i.s expected that this action ivilj have the desired effect, and cause the Canadian Government to abandon what one financial journal calls “not only'. an undesirable precedent, but an undesirable , practice.”

REDUCED FIDUCIARY ISSUE

The news of, the TedWtnn ,in ' the fiduciary issue to . the o'fi figure of £260,000,000 . wars, generally .welcomed in the city. Though Jn some, quarters it was ,interpreted as part of. a policy of deflation, the best-informed .financial writers state that it .Joes not mean this. The “Daily Telegrip'll” cays that the volume . o ,f. creebt .is so . ample that the effect of thp ret uni to- the - statutory limit of £260.000,000 will be negligible’ if any, To . all “intents and purposes it is little more than the formal discontinuance of an, emergency arrangement no longer required..

HOPEFUL SIGNS.

Commenting on. the position at the end of th e firstquarter of the fourth' year of the depression a writer in the •‘Financial News” thinks , iCyat oil the whole we haye to b e thankful.

‘■Thp last three, -months destroyed fewer illusions and left investors, richer than might hay e : been . expected,■’•’ he writes.. “Hom e trade ;ba s • been none too good, .an.fi. the setback in’ some industries, such as ■ textiles,- 100k,3 - more than seasonal. . All the old problems are ,still with ns. We had .a firstclass United Suites crisis, ; which has been -stayed but not resolved. We «h* looking forward to a .Budget which will grant us the less relief the more it is balanced. Yet three months ago 54- pe r cent. war loan was £99. against ••■£lol/,to-day. Austin Motors were £1 l(Ys, .against £2 -8s 3d ; Robinson Deep B were 16s 14d, against £1 9s 4d; Consolidated Tea . were- 6(-d, 'against.• >ls-vS'lcl. -or *>tiwr :

..- ‘’The verdict on the. three months is that equities on the,, 'whole -hive held tlu-ir ground. Bonds; . including giltedgcds, first cnf'blidated- and subsequently improved upon their position after last year’s advance.”

Good news indicating a certain improvement in trade was announced today. First, • -from Paris, comes the report °f a. heavy Increase in flip receipts of the Suez ■ C naf-1 ."for the ; first three months of the year. These vveip approximately • £1,697,000' at” par, compared with £1,640,000 for the corresponding period of 1932. The second piece of good news i- the of the Royal Mail ; Steam-' Ship.- Company for 1932, which show an encouraging recovery! in earnings A enabling the directors to pay-off" some arrears of preference dividends./

BUTTER SITUATION

There-As no sign of 1 a recovery in butter prices;--- importers taking a most serious view of the situation. One' leading importer said they were most reluctant to make the reduction advances, .for they-recognise that these payments world moan a great reduction in the 'spending'npower of. the dairy farmers and in many cases terrible hardship to their families; but slump values might have been prevented if th e New Zealand'and. Australian Governments through, the Dairy.,-'Boards had cooperatedv with the British Government in ; the limitation and regulation of supplies'. Importers, despairing of any (such co-op-efation, had to face the facts' of the situation and let the market , take its'natural 'course. Unfortunately it was impossible t° estimate 'how much further Jt might go down if Continental supplies continued to he dumped considerably, in excess of last year s-.