TRADE SUMMARY

Southland Times, Issue 21099, 3 June 1930, Page 7

TRADE SUMMARY

MARKETS IN BRITAIN DULL PERIOD ON STOCK EXCHANGE COMPETITION FOR WOOL (United Press Assn.—By Telegraph—Copyright.) London, May 31. The Stock Exchange is passing through a very dull period. There is a complete absence of speculation, and the week just closed has been one of the quietest experienced for many months so far as industrial shares are concerned. The only activity has been in gilt-edgeds, which have experienced an increase of business, thanks to cheap money and expectations that the bank rate will be lowered in the early future. Many people hoped the rate would be lowered to 2$ per cent, last Thursday, but were disappointed. It is, however, regarded as almost certain that a reduction will come in a week or two. “The world as a whole is passing through the throes of a major trade depression,” says, the Economist in its monthly review of the state of trade, and the reports of other authorities make equally dismal reading. Lloyd’s Bank Monthly, for instance, dealing with Home trade, says: “Conditions remain generally very disappointing, and unemployment has again increased. Commodity prices have again fallen during the past month, and until traders have some certainty that the fall has reached its end they are unlikely to extend their commitments.” Woolbrokers Optimistic. The only bright spot appears to be the wool market, and all the brokers’ reports of the wool sales, which closed yesterday, are couched in optimistic vein, and express the view that confidence has been restored. Thus the Charles Balme Company writes: “From the active and widespread competition it would appear that the trade has confidence in the future*, and it seems reasonable to hope we shall not see any setback in values during the next few months.”

H. Dawson and Sons write: “The outstanding feature is that practically all medium combing Merino wools are meeting the keenest competition, and that Continental buyers, particularly German and Alsatian spinners, are evidently needing these for immediate requirements, and have been prepared to pay a very solid advance, but Yorkshire has not been able to join in the issue to any large extent at the new level which has been established. It is apparent that the pessimism of the early months of the year has given place to new confidence. Moreover, it is evident that the bogey of heavy surplus supplies at the primary sources which contributed so much to nervousness in the past season has been thoroughly laid low. The salient factors to be considered may be summed up as follows; The raw material is still at a relatively low basis, and Merino wools are finding new outlets. Stocks in consumers’ hands are generally below normal, and the policy of restricted operations, when our market was failing, can now be revised, and, with the incentive of cheap money, may ■ now encourage the replenishing of stocks. Anyhow, there is such renewed confidence in the situation that one may be justified 'in looking forward to improved prospects in the industry, although the change has been so remarkable and so rapid that it is still viewed with some nervousness, especially in Yorkshire.” Output of Tin. An important step towards control of the tin output has been taken by the Tin Producers’ Association in the appointment of a special committee to deal with the regulation of the output throughout the world. 'The committee comprises members representing the Dutch East Indies, Malaya, Bolivia, and Nigeria, and a significant feature of its composition is the presence of Dutch interests which hitherto have not co-operated with the Tin Producers’ Association. The four sections represented include the bulk of the world’s tin producers outside the Chinese-owned mines in Malaya. At the first meeting of the committee it was announced that a complete agreement had been reached on all points.