TRADE AND FINANCE.

New Zealand Herald, Volume LXII, Issue 19050, 22 June 1925, Page 7

TRADE AND FINANCE.

LONDON STOCK EXCHANGE. CONDITIONS NOT IMPROVED. WOOL BUSINESS RESTRICTED. Australian and N.Z. Cable Association. (Reed. 5.5 p.m.) LONDON, June 20. There has been no improvement in the tone of the London Stock Exchange. Conditions on the gilt-edged stock market remain much the same as they were a fortnight ago, except that prices have weakened further. There has been a steady flow of selling, mostly on behalf of underwriters to meet their commitments in respect of several recent lean issues. These still stand at a discount of over 25s per cent., notably the New Zealand, New South Wales and London County Council loans. The result of this state of affairs is that borrowers this week have, been compelled to offer more favourable terms. An issue of £2,000,000 in 5 per cents, by the Synthetic Ammonia Nitrate Company, under the Trade Facilities Act has been mad,e at 98. The recent boom in rubber shares has been checked by a relapse in the price of the raw material. The foreign bonds market has been somewhat upset by the disturbances at Shanghai. These naturally caused a heavy fall in Chinese bonds. Tho only satisfactory feature has been a distinct revival in home railway shares. This was apparently induced by an optimistic speech hiade by Viscount Churchill, of Wychwood, chairman of the Great Western Railway. He spoke hopefully of the prospects of the South Wales coal trade and of the substantial results which had arisen l'rom the economies effected by the Great Western directors. Among the new industrial issues is one of Australian interest, namely, the Union Cold Storage Company's £3.220,000 in 6 per cent. £1 preference shares. Regarding the wool outlook a Bradford correspondent writes: The amount of" new business which producers of yarns and piece-goods are receiving is not sufficient to make them anticipate a marked or sustained revival just yet. Consequently they are adhering to the policy of doing no more than cover their actual needs, which are very limited. They are quite content to run the risk of the verdict to be given at the London sales in July, and are waiting to see the policy of Australian growers regarding the liquidation j of the balance of wool on hand. Tho apple trade is feeling the effect of the competition from soft fruits, particularly strawberries. These are now being marketed freely. The quality, however, is not equal to the usual standard, the berries being mostly small and deficient in flavour, owing to the dry weather. The costermongers, however, are taking them in place of apples, and • consequently prices for lower qualities of apples have weakened. This decline lias been accentuated by the fact that many Tasmanian and Victorian apples have been of indifferent quality. Best sorts, particularly the keeping varieties lika Sturmers, continue to meet with excellent demand and to make good prices. The Continent is taking considerable quantities of wellcoloured showy fruit.