LONDON'S TRADE.

Auckland Star, Volume LVI, Issue 289, 7 December 1925, Page 4

LONDON'S TRADE.

WILD SCRAMBLE FOR RUBBER. B.ISE IN PRODUCTION. rSXREASE IN BANK RATE. LONDON, December 5. Rubber eharee Lave again overshadowed everything else on the London Stock Exchange in the past fortnight, and the volume of business in those shares this week established a new record. There has been a wild scramble to buy every day, and cveu the announcement that the percentage on standard production will be raised to 100 in February failed to check the rush for shares. Indeed, th v'su's was welcomed as a "bull" point .ause it is likely to permit some companies to produce more rubber and make larger profits. Other departments of the Stock Exchange have been very dull. Although prices show littlo change, foreign seeurl ties have been favourably influenced by the signing of the Treaty of Locnrno. The rice in the bank rate usually has an adverse effect on gilt-edged stock?, but Thursday's increase only caused some dullness, as it had been recognise.l that the withdrawals of gold rendered a rise inevitable. Xow that the advance has been mnde there is a feeling of relief that the period of uncertainty is ov;r. In fact, the gilt-edged stock market closed yesterday with its tone more cheerful than had been apparent for some weeks. A feature was a renewal of inquiry for the several corporation and colonial -scrips which were recently issued, and which are now quoted at a premium, n-otably Tasmanian at 1 5-8. Trade in Australian sultanas continues to be satisfactory, and although the demand has eased off somewhat lately there have been sufficient sales to reduce stocks of first-hands to a very small compass. Present values range from 66/ to 78/. This gratifying result is attributed by the trade largely to the advertising, campaign, which has induced retailers to make a special feature of Empire fruits. Many grocers' shops throughout the country make special displays of Australian sultanas, currants and raisins. The success of Australian sultanas hae caused considerable perturbation among holders of Smyrna and Cretan sultanas, and it is said they contemplate reducing their prices in order to regain business. Australian currants still meet ■with only poor demand at 27/ to 20/ per cwt, but there is a possibility of improvement, as a report that the Greek Government proposes to purchase the surplus crop has given an improved tone to the market generally. Australian lexias are quiet at 25/ to 35/. — (A. and X.Z. Cable.)