LONDON'S TRADE.

Auckland Star, Volume LVI, Issue 242, 13 October 1925, Page 7

LONDON'S TRADE.

i > ■ BANK RATE REDUCTION. EMBARGO ON FOREIGN LOANS CLEARANCE OF WOOL STOCKS (By Cable.—Press Association.— Copyright.) LONDON, October 12. The reduction in the bank rate has raised the question of the removal of the embargo on the flotation of foreign loans in London. Although that action is eminently desirable from the point oi view of trade, as it would undoubtedly stimulate the export industries, the argument is put forward in some quarters that if there is to be any conversion of Britain's own debt—as appears to he probable—no encroachment on investment resources by foreign borrowers I should be allowed. I In this connection it may be noted that, as a result of recent negotiations between the Belgian Finance Minister and financiers in America, England, Holland and other countries, Belgium will shortly try to raise a loan of 150,000.000 dollars on New York, London, Switzerland and Holland for the stabilisation of her exchange. I Commenting on the wool position, one of the leading authorities says: "There are still very few signs of encouragement in the way of nn increased turnover and remunerative business for Yorkshire. The values of the raw material are still too high for the spinner and the manufacturer, and this can only result for some time in difficult hand-to-mouth trade. "The conditions, however, are becoming gradually better. They are being helped by the large clearance of old stocks in London and the Dominions. Most of the home trade consumers seem to be content to wait until the season is more advanced before operating extensively. They believe oversea supplies of wool in front of us are quite plentiful for present consumptive requirements. "There is also being felt a strong Continental spot demand. This has been partially the cause of the improvement in London. It has been accentuated by the shipping strike delaying arrivals of wool bought on account of the Continent in the Dominions and necessitating urcent purchases in London. "Everybody is asking if France will be able to continue the pace when the lieisrht of the season is reached in Australia. There are, however, large orders in hand, and the general impression prevails that the French demand will be ■sufficient to maintain prices for a little while. Meanwhile stocks on consumers' hands in other centres are being reduced and are approaching the normal, although at the moment a cautious waitinjr policy is being favoured." —(A. and N.Z.'Cable.)