TRADE REVIEW

Hokitika Guardian, 19 September 1933, Page 6

TRADE REVIEW

SATISFACTORY. POSITION. (United Press Association—By T.ectrio Telegraph—Copyright; LONDON, Sen. IG. Business on the Stock ■Exchange continues to be satisfactory m all departments. Industrials especially are in demand as a result of the favourable trade returns and of the decrease in the number of unemployed, whuff are naturally taken to indicate a revival of trade. There has been some irregularity in gold-mining shares, which have fluctuated with the price of the metal. Gilt ctjgeds arc steady. Tile quick success of the Commonwealth loan had a £ ot, d influence on the whole group and caused a general marking-up of Australians _with Commonwealth 5 per cent 1945-75, touching £llO. Australia received a very good press regarding the loan, news-, papers all over the counry referring to it as. eloquent testimony of I' l6 wonderful recovery made in the last two years-. The “Morning Post” says it is only fair to recognise that- those responsible exercised great skill in judging almost exactly the right price f o r flic issue. Even i per cent might have made all the difference between | success and comparative failure. Mr 8. M. Bruce’s' ."'resourcefulness and energy were laiGely :'fespon.sibhV4or 'the ' suedess:" •; , . r- • Wr- .caiiti bK ’

. DlsViVsslng <the trade position, “the financial editor of the “Spectator” writes that the outlook i s moderately hopeful. At the same time, two facts must be borne in mind which may well restrain any excessive optimism. The first is that some part of the trade recovery is due to the depression having gone to extreme lengths, so that the reaction was overdue. \Y hen the rise in -p)"iees bpgan it revealed in many directions the great shortness of stocks held by retailers, and it lias been the filling up of these stocks which has in a large measure been responsible for some .of the, improvement in commodity prices. Ip now remains to lie seen whether ,am adequate increase, in the public’s -consuming power will' i'ollojw. this, replenishment of stocks.- ... , , .

The other. point calling . for consideration, is the uncertainty about the outcome of the experiinenqi.it in the United States. Should it., succeed, fits, influence .in. stimulating} .trade activity elsewhere may be-considerable, eyen if it also heralds somq, great., 'socialisation of business activities. If, however, the efforts being madp. in the United States are. not successful, then we must look for. some kind of reaction, in trade recovery in .many parts of the world, though whether they would be very severe must.depend upon the extent to which. My. .Roosevelt’s, plan has been supported by actual inflation, of . credit and currency. ." optimism ABOUT BUTTER.,

The recent improvement .in the butter trade is wel] maintained. Traders (are •hopeful ' prospects, for the statistical position looks h©tte r -than for, a long time. Not only are stocks an cold'-Store being substantially reduced, but the quantitites afloat from New Zealand, Australia, and Argentina are 180,000 less than at the corresponding time in 1932. As the newspaper the “Grocer” says, owing to the long spell of hot , dry weather, production in all European butter-producing countries is rapidly declining. Germany, France, Belgium, Italy, Switzerland,, and other countries will have to increase their quotas almost'; immediately, and undoubtedly must import .butter much earlier this year than hast, as they have very' small resqrtq stocks. Although J;l)e,. ,-hqt weather proved beneficial to'; ft had; the opposite eefi'ct on egg production, (which has been stimulated. This lia.s caused a smaller, demand for Auswhich have been somewhat difficult rto sell.