TRADE REVIEW

Ashburton Guardian, Volume 55, Issue 179, 13 May 1935, Page 5

TRADE REVIEW

THE PROSPECTS FOR WOOL. FIRMNESS IN PRICES EXPECTED ONE PREDICTION OF INCREASE. (United Press Association—Copyright). (Received This Day, 8.30 a.m.) LONDON, May 11. A writer in a leading financial newspaper says: "Some of the sunlight which illuminated London on Jubilee Day seems to have /penetrated to many corners of the Stock Exchange." This describes the position accurately, for though business has not been brisk as the holiday feeling lasted throughout the week, the tone of almost all the markets has been distinctly good and yesterday there was a burst of activity in several departments, notably in aircraft shares, which- received a stimulus from the Air Ministry's letter to contractors. All aircraft shares showed good rises. The average figures of the clearing banks for April afford encouraging evidence of the improvement in business. The total advances by these banks amounted to £744,700,000. This is the highest figure for April for nearly two years and is more than £IO,OOO higher than that of January, 1934. The rise is partly seasonal in character, but may be regarded as a real sign of recovery in trade and industry. The "Spectator's" financial editor contributes a timely article on 25 years of British banking, in which he mentions that when George V. came to the throne, in 1910, the total banking deposit of thefjoint stock banks in England and AVales amounted 'to roughly £720,000,000, whereas at the end of 1931 the total amount exceeded £2,000,000,000. The writer adds: "Throughout these 25 years the joint stock banks, had to stand the strain, first of the Great War, then of a short period of superficial prosperity, later the strain occasioned by many years of financial depression; and crises in many parts of the world, and finally that of the political crisis; in 1931, and our departure, from;' the; gold standard. Throughout all these crises confidence in the banks' never waned. This point gains importance when it is remembered that the stability of our banks has been in striking contract to conditions that have prevailed in other countries, not the lease in the country which was supposed to benefit fro mthe Great supposed to benefit from the Great Jubilee celebrations and the influx of hundreds of thousands of visitors to London stimulated the demand for apples and pears, of which the consumption this week has been very great, so that although supplies have been heavy, prices have kept steady. As lighter quantities are to arrive in the near future importers are hopefuj that present prices will, be maintained, if not improved; '" '■'' '• The strong opening at the London wool sales, following firmness in Australian selling centres, has been naturally reflected at Bradford. Topmakers are able to advance quotations. The "Yorkshire Observer" says: " What the trade now wants to know is whether the present advance is likely to be maintained: Responsible men in the industry are saying to-day that they see no reason why wool, in its present sound position, should show any weakness in price between now and the opening of the next selling season in Australia. The present keen demand by all wooMisitig countries and the fact that the selling season overseas is drawing to a close, with consequent diminishing of supplies there, encourage the. belief ..that prices will remain somewhere near the present level. Indeed, ;more than one trader predicts still dearer v wool before tire season ends. There seems to' lie general satisfaction among wool importers and topmakers at the recent advance, which, they believe will bring out business which has been held back because buyers have been uncertain about the trend of prices, and according to reports there have been inquiries which suggest that a buying movement is not far off.