BRITISH TRADE REVIEW

Dominion, Volume 19, Issue 156, 29 March 1926, Page 7

BRITISH TRADE REVIEW

MONEY CONDITIONS IMPROVING GROWTH OF CONFIDENCE IN WOOL INDUSTRY HAND TO MOUTH BUTTER BUYING An authoritative review of the state of British trade mentions that money conditions are continuing to improve. There is growing confidence in the wool industry, but it is emphasised that the great desideratum at present is a minimum of fluctuation. Knowledge that a large Quantity ot butter is stored in London has resulted in hand-to-mouth operations by buyers and a complete absence of speculation.

By Telegraph.—Press Association Copyright. London, March 27. Business iu most departments of.the Stock Exchange has been extremely dull, with prices tending downwards, but gilt-edged securities, after ■ some uncertainty early in the week owinsr to the money stringency have become distinctly firm. As money conditions have improved and should improve further next month, easier conditions are then expected. The flood of new. capital issues continues, this week’s issues amounting to £9,177,000. 'They met with a varying degree of success. Some, like the New South Wales loan, were left largely in the underwriters’ hands, but others were rapidly over-subscribed, especially those giving a high rate of interest. A notable success was the San Paulo waterworks issue of two and a half millions 7 per cents, at 96. The public rushed this issue, which is now quoted at 4} premium New South Wales script is now at about 13-16ths discount, but the underwriters are not perturbed, as they exnect the discount will soon be wined off;

Confidence in Wool Trade. Wool-traders generally express satisfaction at the result of the sales just concluded, which were regarded as the most critical of theyseason on account of the large quantities being offered in Australia, New Zealand, and South Africa simultaneously with the London auctions. This naturally meant a great strain on the buying power of the wool industry, and taxed its. financial resources somewhat heavily. but, to quote a leading authority, "there has been a minimum of weakness, and in London all the best Merinos and finest crossbreds slightly hardened in value. This has given trade an assurance of confidence which so far has been lacking.” Business at consuming centres is not yet brisk. The improvement, though noticeable, is slow. Traders are showing great caution after last season’s experience. The markets are still extremely sensitive, financial interests sometimes operating unfavourably, particularly for Continental business. Consequently, there are no indications,. of anv definite upward movement The great desideratum is a minimum of fluctuation. Anv material advance would probably check new business, and a decline would again destroy confidence, which is just becoming established.

Improved Demand for Butter. The improvement in the demand for colonial butter is maintained, and the trade this week has been satisfactory; nrobablv largely due to retailers fi’linc Easter requirements, but buyers are onlv operating from band to mouth, and there is a complete absence of speculation. This is due to the knowledge that there is a large quantity of butter stored here. Opinions regarding this Quantity differ considerably, ranging from one million to half a million boxes. This wide divergence has revised the aeitation for publication of official statistics regarding the quantities in cold store, as _is done with other commodities, and it is suggested that the Australian and New Zealand Control Boards should take the matter up.—Aus.-N.Z. Cable Assn.

CANADIAN TRADE INCREASED EXPORTS TO BRITAIN ' Ottawa, March 26. For the vear ended February 28, the United Kingdom’s purchases from Canada amounted to 502,000,000 dollars, which was 109,000,000 dollars greater than for the previous twelve months, and 29,000,000 dollars more than was purchased by the United States. Bor the same period Canada bought from the United States goods valued at 597,000,000 dollars, compared with 162,000,000 dollars worth from the United Kingdom.—Aus.-N.Z. Cable Assn.