BRITISH TRADE REVIEW

Dominion, Volume 21, Issue 14, 11 October 1927, Page 9

BRITISH TRADE REVIEW

RECOVERY IN GOVERNMENT SECURITIES FOLLOWS CLOSING OF C 0& VERSION OFFER GOOD DEMAND FOR DOMINIONS’ STOCK i The closing of the British Government’s conversion offer has been followed by a sharp recovery in British Government securities. There has been an * exceptionally good demand for Dominion Government securities also. By Telegraph.—press association. . Copyright. London, October 8. The closing of the Government’s coo version offer has been followed by a , sharp recovery in British Government securities, especially the 5 per cent. War . Loan. A satisfactory feature is that the recovery appears to be chiefly due to the purchase of securities of a purely investment character, by comparatively small investors. The demand for Dominions Government securities has. been : exceptionally good. The Australian, 5 per cents, are being bought freely, with the result that the last issue is no longer quoted at a discount, but has reached about one-quarter premium. Many New Loan Issues Expected. With the market in this favourable ; position, many new issues are expected in the near future. First is the Union of South Africa loan of £5,000,000 at 5 epr cent., redeemable in 1945-75, and issued at £99 10s., which was underwritten vesterdav. Some surprise may be felt that South Africa can get £99 10s., while Australia in last July could only get £9B; but it must be remembered that the indebtedness of South Africa is far smaller than that of Australia, and South Africa’s existing 5 j>er cents are quoted at £lOl 10s., while the monetary conditions in London are far more favourable to-day than they , were in July last. Another big load impending is that of the Government of Brazil. It is for £17,000,000, and fe to be placed in New York, the Lond<W portion being £8,750,000, part of wWd> will be allocated to the Continent. Ths price of the issue is not yet settled? but it is expected to yield the investor the equivalent of 7 per cent. Supplies of Fine Wool.

The “Yorkshire Post’s” special correspondent at Reichenberg notes a spects! resolution, of M. Debrulle has . bcett adopted, requesting that Australia and South America concentrate on the pro duction of merinos in order to ensure, a supply of fine wool. Growers in meeting the sudden demand should not foeget the claims made by an authority in Bradford in moving in favour of the. systematised collection of world-wide statistics. Such knowledge would have prevented the disastrous effects that followed the miscalculation of wool supplies of 1924-25. He thought it would be useless, however, unless made con> pulsory. Improved Wool Packs.

Discussing the subject of jute fibretf for wool packs, Mr. Hodgson (Bradford) said he did not object to bnrra, which was the staple feed of Australian sheep, but the position would be more acutel presentlv, because inferior jute packs were being used in Australia, and NewZealand experiments were being corn tinned in Bradford with the all-wool pack, also with jute rubber treated; bnC the most hopeful thing was AkroydiJ wire and paper pack, which withstood the severest tests. Samples were being forwarded to Australia to be returned filled with wool so that the results could, be tabulated by Jone or July.

.The Butter Market. The butter trade has been somewhat I quiet during the last few weeks, retailer® having still sufficient stocks for requirements ; but the undertone in the market is very firm in view of the statistical , position. It is expected that prices wHI ■ be maintained until the new season's butters arrive. After that it is believed , there is likelv to be a demand from America and Canada for New Zealand and Australian butters, which will relieve the British market at a time when supplies will be very heavy. Frozen Beef for the Army.

Tenders for the supply of 2000 tons riS frozen beef for the Annv at Mediterranean ports close next Friday, but so far as is at present known . firms are competing. Tt will be larlv disappointing.if the contract goes to Argentina, in view of ths fact that! Australia secured the last similar eontract- « Egg Trade Prospects. Prospects .for the Australian egg export trade do not appear too favouraW and there seems little likelihood of prices for some time as the markets now plentifully supplied, France having! removed the export restrictions.