GENERAL DISMAY

Waikato Times, Volume 121, Issue 20279, 23 August 1937, Page 7

GENERAL DISMAY

LONDON STOCK EXCHANGE A DECREASE IN BUSINESS. EFFECT OF FAR EAST CRISIS. United Press Assn.—Elec Tel copyrlgtoi (Received August 23, 11-20 a.m.) LONDON, August 22. Not since the sanctions crisis in September, 1935, has the market taken a threat of undeclared war so seriously, declares the Economist. The bombardment of Shanghai has caused general dismay, owing to the considerable British interests Involved, and business has fallen away to a trickle. Almost every class of security has tended to sag. The brunt of the decline naturally has fallen on Far Eastern bonds. Unfortunately the European situation, in view of the Mediterranean and Czechoslovakian tension, does not offer anything to offset the pessimism over the Far East, where a long war Is possible. It is pointed out, however, that Japan is less financially equipped to stand the strain of prolonged hostilities that when she occupied Manchukuo in 1931. Optimists searching for comfort contend that the war may be an advantage to Lancashire and lessen competition from Japanese textiles. The •hipping companies may also benefit •s freights rise and Japanese competi- „ lon is reduced. Expansion In Markets. But for the depressing news In the Far East the markets must have been stimulated by the July trade returns, which show that British markets are expanding with almost sensational rapidity. Commodity prices tended downward, notably wheat and cotton. Metals show little change.