TRADE RECOVERING

Hokitika Guardian, 26 June 1933, Page 8

TRADE RECOVERING

POSITION IN UNITED STATEg. A broadening industrial expansion in the United btfites, with output in many lines surpassed the game period of a year ago, was the outstanding feature of the month of May, states the ilanK of Montreal. A sharp advance in prices, accompanied by rising demand, is partly ascribed to a somewhat better than seasonal enquiry for certain commodities, although the spur- given to publo interest by the recent legislative powers permitting inflationary steps was probably the greatest factor. There ie a better demand for labour, and, while it is difficult yet to see any substantial improvement, sentiment has become more cheerful. In the commodity markets nearly all prices have moved higher, led b.v wheat and cotton. Wheat reached more than 70 cents a bushel, against a low of under 50 cents earlier in the year, following official announcement that the winter wheat crop, estimated at 66.7 per cent, of normal, is the smallest since 1904.

Continued recovery is reported by the steel industry, with a gain in production approaching 40 per cent, of capacity compared with a low point of 15 per cent, earlier in the year. Unfilled orders on the books of the Steel Corporation for the first time in many months show a substantial increase. The demand for automobiles has, been the most encouraging in several years. Important progress was made in the securities markets, now highs , for the year being reported in many issues. . Gradual adjustment in the banking situation is taking place, with deposits showing a tendency to increase.