Sept. 24.
Further reference may be made to the statements appearing in yesterday's leading article to the effect that the corner appeared to have been turned in the long road out of the present depression, During the last week of August, a London correspondent of the "North-China Daily News" wrote that there was great cheerfulness abroad—the first for a long time, due to the continued advance of commodity prices, in which wool, cotton, tin and rubber were the outstanding features, and it was believed that if the process were continued the stock market prices could hardly fail to respond. Written almost a month ago the finding then has been supported by developments from day to day, and even on Thursday, according to Reuter, in a message appearing on to-day's zommercial and financial page, the commodity markets and the Stock be felt in the commodity markets and that for the time being spe-curators would do well to be very cautious in their dealings.
How far the commodities noted above have moved during the present year up to August 30, may be seen from the table given below, and it will be noticed that while only in the case of cotton, tin and wheat has there been an improvement on the figures prevailing on January 1, the manner in which prices prevailing at the end of last month had risen from the lowest during the year, affords considerable ground for opti-miss. The figures are as follow:—Jan. 1. Lowest Aug. 30 Cotton* 5.39d. 4.08d. 6.98d, Rubber** 3 5/16d. 1 3/8d. 3d. Coppert £ 38:1:3 £25 £34:18:9 Tin £ 141:2:6 £100 £150:5:0 Wheatt 5/5 3/8d. 4/Tid. 5/634. Sugar§ 7/0} 4/i 6/54 *spot Ib. 2100 Ib.
**lb. S cwt.
t ton.
Of course, the question of commodity prices is not unconnected with the embargo on Capital Issues now existing in Great Britain. There are many people who think that if this is raised there would be a very great dea! of industrial development, which would, of course, be productive of a boom in the consumption of many natural products. The Chancellor of the Exchequer, however, 3 not inclined to give way at present. Some slight modification of the embargo has been announced by the Treasury. Issues now allowed are:—Exchanges of one class for another class of security without change of ownership. Issues to replace securities, the final redemption of which had, prior to July 1 last, been fixed for earlier than December 1, 1932, provided that such operations concern only British (including Empire) sterling issues domiciled in London, and involve neither the provision of new cash nor und2r-writing. Following the triumphant success of the £2,087 millions 5 per cent. conversion operation, the "London Gazette" announced particulars concerning repayment of £12,804,000 43 per cent. War Loan and £140,418,- 000 43 per cent Treasury Bills. The Chancellor of the Exchequer is generally approved in his waiting policy. The "Financial Times" remarked "the desire to defer the general reopening of the capita] market is clearly in consonance with the interests of the country as a whole. Any outstanding balance of the Five per cent. War Loan, of course, will have to be repaid on December 1, while it was announced that the Four and a Half per cent. War Loan and Treasury bonds, totalling some £153,000,- 000, are to be dealt with too, although details have not yet been made known. Before opening up an unknown number of channels for the absorption of new money, the authorities naturally desire to be certain of the extent of the national requirements, The amount which will thus be demandeq cannot be known exactly till after the expiration of the conversion offer at the end of September, at which date reconsideration of the whole question is promised. Whether it will then be found possible to remove all barriers, or whether this will only be done by stages, wil) necessarily have to be decided in the light of circumstances as they appear at that time."
It is_apparent from the foregoing that some time has yet to vance of the individual might be to the detriment of the community. For obvious reasons the government has been dealing with first things in the proper order of priority. It would have been foolhardy in the extreme if it had not taken advantage of the cheapening of money—if indeed that process was not undertaken with that very intention—by a conversion which was to be of such great benefit to future budgets. Obviously the Chancellor of the Exchequer will not move towards raising the embargo on Capita] Issues until his own requirements have been adequately met, There is nothing to indicate that what has been done has in any way exhausted the capital market: indeed there are indications to the contrary and it is more than probable that when the complete results of the conversion have been ascertained, will be possible to remove this final obstacle—and in fact the most important—to the progress which British trade is ready and eager to make.
Text read from the printed page and cleaned; old type leaves the occasional error.