STOCK EXCHANGE

Rotorua Morning Post, Volume 1, Issue 28, 25 September 1931, Page 3

STOCK EXCHANGE

Press Associatior

optimistic tone brisk business done in a cheerful atmosphere FOOD PRICES NOT RAISED

l — Copyright.

By Telephone — "Post" Speciai Service.

RUGBY, Thursday. When the London Stock Exchange and the provincial exchanges reopened yesterday, substantial gains were recorded throughout the Home industrial group, iron and steel shares being particularly strong. Motor and electrical descriptions, breweries, newspapers, chemicals, textiles and tobacco all benefited from the optimistic conditions. British funds were marked lower, as was, of course, anticipated, in consequence of the rise in the bank rate. Commodities generally have risen. Everywhere the dealings were conducted in a cairn and cheerful atmosphere. Wholesale interests everywhere declared that any rise in food prices at present would be entirely unjustified, and a deputation from the Grocers' Federation waited on the Board of Trade to assure the Government

that they would co-operate in every possible way to keep prices down. Should it become necessary, the Government will, of course, take steps to control prices. The Chancellor of the Exchequer has given a definite assurance on that point, but so far not a single shop price has been altered. The rule everywhere 4s(, "Business as usual," and the only exception to it is that purchases of foreign exchanges or transfer of funds by British subjects are not permitted, except for the purpose of financing normal trade requirements, reasonable travelling or personal purposes, or contracts existing before September 21. There was little business in Australian and New Zealand stocks, of which prices were similarly marked down like all fixed interest seeurities, owing to the reduced value of the pound and the higher bank rate. The "jobbers" marked down prices of British funds to a level corresponding with the decline in the value of sterling, but they quickly hardened several points. The stock markets finished the first day's business since Saturday in a cheerful and active mood. There had been almost a record attendance of members on the Exchange and dealings were conducted free from all restriction, a policy which was more than justified by the steady buoyant tone displayed. Commodity markets reflected general strength, as did also all the exchanges in the leading foreign centres.