BRITISH TRADE REVIEW

Dominion, Volume 18, Issue 53, 27 November 1923, Page 7

BRITISH TRADE REVIEW

IMPROVEMENT ON STOCK EXCHANGE RECOVERY OF GILT-EDGED SECURITIES BRIGHTER INDUSTRIAL OUTLOOK Towards the end of last week there was a surprising, but welcome, improvement in the London Stock Exchange, and gilt-edged securities have recovered from their recent serious set-back. A tendency to Improvement in trade is reported also. By Telegraph—Press Association. Copyright. London, November 24. ' After ten days of depression and general uneasiness, arising from various obvious causes, the Stock Exchange on Wednesday suddenly took a turn for the better, and it closed yesterday in an atmosphere of cheerfulness. This was as surprising as it was welcome. Early this week the feeling of depression was such that the prospect of anv new issues seemed out of the question till after the general election. at least. But the recovery of sterlino- bv about ten cents in the New York- rate of exchange had such a rapid effect that the Denaby Colliery issue of £BOO.OOO 6 per cent, debentures issued at £9B 10s.. advertised vesterdav. was over-subscribed in two hours It was also possible to underwrite the South. Australian ami Tasmanian loan? without the snentesu difficulty. The success of these new issue operations is regarded as an indication that the depression is past: and the ease with which giit-edged securities have recovered from their serious setback is accepted as showing that confidence was not by any means severely shaken. A scare was produced by the vague talk of possibilities of a Labour victory nt the elections and of a capital levy. Tin effect of these rumours has almost disappeared, and the Stock Exchange generally anticipates a return of the Conservative Party with a fair working majority.

Tendency to Improvement in Trade. Reviewing the state of trade. . the financial newspaper “The Economist, savs the signs of slight increase in production which were seen during the last two months are confirmed by a further expansion of the iron and steel industry, the brighter outlook in the engineering trade, and! the rise of 8 per cent, in shipping freight Afore business is being done in the cotton industry, chieflv owing to rather bettor Indian ' demand. Employment figures confirm the tendency to improvement, for thev have remained practically stationary for the last two months, when the seasonal decline in employment is ordinarily expected. Butter Market Strong. The butter market retains its strength, though the trade, at advanced nrices. is slow. Importers consider that there is little prospect of anv decline in values in view of the shortage of Australian exports and the fact that tho United States is buying considerable quantities in New Zealand. Amencans have also bought a fair amount or Dutch and Danish lately. Trade in New Zealand and Australian eggs continues most satisfactoiy, the demand being excellent, as Continental supplies are somewhat restricted. The latest arrival of 1626 cases from New Zealand in the Rotorua landed in fine condition. Importers consider they are the best that have been landed. They realised 225. to 235. per 120 Dried Fruit Trade. The dried fruit trade shows some improvement. as retailers arc buying freely for the Christmas market. Australian Lexias cleared well at 525., and the market is now bare, and 535. per cwt. is asked for the moderate quantity due' to arrive next week.. Australian currants are also .meeting witn improved demand following on another reduction of price, and fair quantities are selling at about 535. for Three Crowns and 50s. for Two Crowns: but sultanas are still very difficult to more, as plenty of Smyrna a and Greeks are available. —Aus.-N.Z. Cable Assn.