BRITISH TRADE.

Press, Volume LXII, Issue 18604, 1 February 1926, Page 10

BRITISH TRADE.

OPTIMISM CONTINUES. REASSURING EFFECTS. (BY CABLE—PRESS ASSOCIATION—COPYRIGHT.) (AUSTRALIAN AND N.Z. CABLE ASSOCIATION.) (Received January 31st, 5.5 p.m.) LONDON. January 30. Tho optimistic note regarding the outlook for British trade, which was struck hy Mr Reginald AlcKemia (chairman of the London Joint City and Midland Bank) in his recent speech lias echoed in :Jrcsses by chairmen of meetings of five other important banks, including such well-known iiuaucial authorities as Mr Walter Leal', of the Westminster Bank, and Sir i'elix Schuster, of the National I'ruvincial Bank.

All tlies experts have taken a distinctly hopeiul view and their speeches have had a reassuring effect in the City, and have given rise to a general lceiing of quiet optimism regarding the financial commercial outlook. So far, the Stock Exchange has hardly reflected this optimism, and business in speculative stocks has been very sla r ;k. This is mainly due to the setback in rubber, which caused a considerable number of forced sales, and the weakness in this section spread to other industrials, but gilt edges have been conspicuously firm, and, though business has been only on a small scale, prices have hardened all round. Colonials have been notably strong and several recent issues, which were lately quoted at a discount, have either reached par or are very close thereto.

The firmness of gilt edgeds has given rise to rumours that the Government is likely to bring forward another large conversion loan scheme soon, but opinions regarding this are very conflicting. and it is pointed out that there is no immediate need for any conversion, as there is nothing falling due till February, 1927. One cause of the firmness of gilte:l<r 's is undoubtedly the advance in the American exchange rate in London, which is to-day 4.SGS dollars the highest point siir j - ocember, 1914. Another interesting exchange movement is the advance of the Dutch rate to 12.12 ii pence, which brings the guilder to a discount as compared with sterling for the first time for a long period. The wool sales are proceeding satisfactorily with evidence of increased confidence among users generally. According to the "Economist's" special wool correspondent, an encouraging feature of the sales is the continued operations of French and German buyers, who have evidently found _ it policy to take up further supplies. America has taken only a few lots, chieflv super Geelong comebacks, threequarter bred slipes. The bulk of the offerings are falling to the Home trade, ;.iid excellent support is bein<T given to slipes, though these generally are a penny cheaper than the fast series.

The offerings of greasy crossbreds are small, and the determination ofbuyers to secure these whilst they are available is resulting in the prices being kept very firm, but it must not be expected tliat tho present basis will be exceeded, for large supplies may be expected Later. Bradford buyers are showing a good deal of confidence in crossbred wools, despite the absence of any great demand on immediate consumptive account.

An outstanding feature of the sales during the past week is that they passed off better than at one' time seemed probable. The reasonable opening has produced a beneficial effect. Col. Willey, of Bradford, whose firm has been experimenting with synthetic fibre, called artificial wool, savs it lias been doin<r .v. mainly with the idea of seeing if more work could be provided for textile operatives, and the fact that new material could be_ manipulated on the existing machinery was of immense importance ; to Bradford. His firm had made several fabrics entirely from new_ fibre. • Col. Willey's view is that the fibre cannot be regarded as a, rival to natural wool, but it must not be lightly regarded, especially if- it is going/to set some of the standing machinery of Bradford moving again.