Commodity Prices

Manawatu Times, Volume LIV, Issue 7278, 4 October 1933, Page 9

Commodity Prices

RETURNING CONFIDENCE. “A LONG AND THORNY PATH.” United Press Association.—By Electric Telegraph.—Copyright. LONDON, Oct. 1. The Stock Exchange maintains its cheerful tone in every department, thanks to a number of favourable influences, notably the good reception to the new British Government’s Conversion Loan and the brilliant success of tho Australian Commonwealth issue. This is reflected in the firmness of gilt-eded securities.

Industrials have benefited by the signing of the Anglo-Argentine Trade Agreement and the rise in prices of numerous commodities, notably of rubber, which advanced sharply on the appointment of the Restriction Committee to collaborate with the Dutch.

It is now believed that tbero is a good chance of the restriction scheme being enforced next spring. This caused a boom in rubber shares, several of which advanced by about fiO pier cent, in a week. Cabled news from Canberra of another Commonwealth conversion loan being pending is not surprising in view of this week’s successful operation; but some doubt is expressed as to whether it can be done just yet. It is understood that South Africa iias prior claim to convert about £15,000,000. Also, as tho Morning Post points out, having icgard to the fact that there is a large call of 03 per cent, on the last loan duo on October 30, there is something to bo said for a pause beforo the next conversion operation is attempted, especially as so far as can be seen at present, there is no reason to anticipate any setback in trustee securities.

Describing the state of trade, the Economist’s monthly review says that although tho latest evidence of the trend of industrial commercial activity at Home and abroad remains encouraging, it would be idle to deny that the path to prosperity is still long and thorny. Nevertheless, it now seems almost beyond doubt that the trade cycle is on the upward movement and has come through the holiday period without any serious mishap. Progress is slow, and many elements in the political and economic situation remain obscure, but there is ground for hope in tho absence of further deterioration in the United States, and absenco of aggravation of tho political difficulties on the European Continent that the improvement in the world economic situation will continue in the near future.

The revival of the world’s industrial activity has been accompanied by an improvement in the position of a large section of primary producers. With few exceptions, the output of industrial raw materials does not exceed the current consumption at the prevailing level of prices.

! In many cases stocks which had ac- ! cumulated in recent years have now begun to decline.