TRADE AND FINANCE

Evening Post, Volume CXXIII, Issue 3, 5 January 1937, Page 10

TRADE AND FINANCE

PRODUCE & MARKET REPORTS FROM DAY TO DAY

JAPAN RESUMES BUYS WOOL IN SYDNEY A BUOYANT MARKET (By Telegraph—Press Assn.— Copyright.) SYDNEY, January 4. The Sydney wool sales were resumed today, special interest attaching to the presence of Japanese buyers alter a protracted period of abstention due to the trade dispute with the Australian Federal Government. Japanese competition today_on suicent, while average to good lines and all descriptions of . s . k^^ ngS Cartonising •10 to 15 per cent, higher, oaroomsms 'sorts advanced 5 per cent. f rom Excellent competition came from Yorkshire and the Continent. A lm Avhich 12,429 were sold at auction, also 1743 were sold privately. MELBOURNE, January 4. - Japan re-entered the Melbourne Wnnl sales today, whereupon values increased by'i to 10 per cent Japan s first bid was loudly aPP^ f : Competing over a , w ' ld f ar J p an n g ror)o °. wools, Japan secured a large propor_ tion of average-style fleeces ana sKiri ings. Although Japan's resumption of "buvine was the principal cause of tn ■increase, strong United States competiMoo bales was all sold excepTloO bales. The higher values represent an inciease of 3Us bale. _ To the end of the 1936 wool-selling season Jap e an had not bought in: Au* tralia, but had purchased ini fairly_ex tensive volume m South a^ nca frf rac . America, and New Zealand Her .tivity on merinos in South Africa. par -ticularly. has resulted in YorKsmre tand the Continent buying m l ar ger ivolume in Australia. Japan's return as apurchaserat Aus Itralian auctions will n°vv permit I Con •tinental and English "tain a larger proportion of African sup *s£»e retransfer of orders may be .'seen, but a private cable received in Sydney states that 61 per cent, of the -African clip is already sold. < ' The more widely distributed bidding •which Japanese operations will provide must, therefore, prove of appreciable advantage to Australian markets. : THE NEW TREATY ? PERMIT TO IMPORT 800,000 BALES The completion of a trade 'treaty between the Commonwealth ofAustraia and Japan was announced by the Mm fster in Charge of Trade Treaties (Sir H. Gullett) on, December 28. tne agreement, which is the result of pro tracted negotiations, is to operate from January 1 until June 30, 1933. Under the treaty, Japan will issue permits for the importation of 800 000 bales of Australian wool during the 18 months' period, an equivalent of 533,000 will import from Japan 76,875,000 square yards oLW.tton Piece goods (other than calic&Sifebag ma *s. ing), and 76,875,000 square yards oi artificial silk piece goods, an annual equivalent of 51,250,000 square yards of each class of material. Australia will also make certain concessions in respect of primage duties on these goods. Each country will remove- immediately the special Prohibitions which have been imposed against the imports of the other, and Japan will also withdraw the operation of the super duties imposed against certain Australian products. TENSION RELIEVED. "Woolgrowers and wheat merchants in particular welcome the agreement. The abstention of Japan from the wool auctions in Australia during the first half of the current season was undoubtedly disturbing, but the loss of competition from this quarter was, to a great extent, offset by the strong inquiry emanating from other countries, selling experiences to date being most satisfactory. j- • „ + Nevertheless, a resumption of direct activities in Australian wool markets by Japan is most welcome, and it will further stabilise the strong selling position. , Japan's re-entry will certainly make the position more interesting. _ Despite her keen operations to date in other, marketing centres, it is well known that supplies of Australian wools so suitable to Eastern combs are urgently needed, and her operators will probably lose no time in obtaining requirements. On the other hand, the position may call for some revision of orders by other competitors, and ultimate transferance of some of them at least to other outside marketing centres. WOOL GROWERS' POSITION. The Special Wool Advisory Committee appointed by the Commonwealth Government issued a statement regarding the Japanese trade treaty in which it described the terms of the settlement as satisfactory starting from the point that a disptue was in existence. "There would appear to be good reason to anticipate a continuance of the friendly relationship which has always existed between Australia and Japan. The safeguarding of this good feeling is considered to be of the ut-\ most importance by the committee, and was so regarded throughout the dispute." The committee records its appreciation of the courtesy and consideration extended to it as representing Australia's wool industry by the Prime Minister (Mr. Lyons) and other members of Cabinet. "The committee does not desire in this statemnt to comment on the action which led up to the dispute, except to state:— "1. It considers that the possible adverse effect to the wool industry was so pronounced that the later courtesy and consideration shown by the Government might with advantage have been extended when the policy was re- . ceiving consideration at the outset. "2. The committee feels that any actively developed trade diversion policy could easily jeopardise the wool industry to an extent out of proportion to probable benefits. "3. Attempts to alter natural trade channels could easily lead to the type of artificial control of marketing which the wool industry, in no uncertain voice, has refused to adopt. NEED FOR VIGILANCE. "For the reasons set out in paragraphs 2 and 3, the wool industry will be very watchful, not only in its immediate interests, but also because of ihe very important part played by wool in Australia's general economy. In addition there is the desirability of avoiding, as far as possible, grounds for international friction. "The committee wishes to draw atSTOCKS AND SHARES. TTLTAN t AIr.CABtJ, AlemDer ol Weilington Stock Exchange, Stock and Sharebroker. Bank oi Australasia Cham bere, 101 Ou»ton?house.;yuay, Wellington Tel. 43-220 feleaxams: tJI/I'MA Watn TIAYSH & LONGUET, Stock and Share Brokers, Manchester Unity Building, 217 Lambton Quay H. U. Duff Daysh, Member Wellington Stock Exchange. Tel 43-112. Telegrams "Stockßhare." TTUBERT L. NATHAN AND CO., Stock and Sharebrokers, National Bank Chambers, Featherston Street. Hubert L, Natban, Member of the Wellington Stock Exchange. Telegrarts! 'Hun at," Tel 42-889,

tention to the great restraint shown by wool growers throughout Australia during a most trying time, and trusts that the good fortune in the form of a strong wool market, which has been our lot, will not cause the Government to under-estimate the character revealed in responding to the Prime Minister's appeal to 'keep out of the ring.' As to the future, the wool industry asks from Governments. the sideration to which it is entitled. MELBOURNE AND OTHER SALES. The National Council of Wool Selling Brokers of Australia has issued the dates of wool selling and approximate quantities to be offered during January as follows:— Melbourne, January 4.—9548 bales, January 11—8631; January 12—800; January 13—8907; January I^lo.° 60 - Geelong, January 5 to 7. —22,000 bales. Launceston and Hobart, January 20 and 25.-42,000 bales. Perth, Adelaide, and Albury follow. JAPAN WANTS TO BUY DEMAND FOR WOOL AUSTRALIAN AGREEMENT (By Telegraph.) (Special to the "Evening Post.") DUNEDIN, This Day. "Trade between Japan and Australia was four to one in Australia's favour, and the reason I was sent out to the Commonwealth in 1934 was to try to equalise said Mr. K. Nihro, former Secretary of the Bureau of Commerce, in Tokio, whn arrived from Australia by the Tokyo Maru this afternoon. Through various circumstances and the recent trade embargo, Mr. Nihro has been in Australia for two years and is pow returning home after having negotiated for Japan the recent trade agreement between the two countries. He said that Japan is anxious to purchase more from good customer countries and it wants to obtain a trade treaty with Australia. Until the recent agreement none existed. Mr. Nihro emphasised that the present agreement was only of an emergency nature to restore trade relations promptly, and that a full agreement must await future negotiations. Japanese wool buyers are now in Australia and would attend the wool sales. Japan had agreed to let 800,000 bales of Australian wool into the country, but at the end of 18 months, which the agreement covered, there would be a demand for more wool which would probably reach 1,000,000 bales. Although New Zealand might suffer temporarily. Japan was wanting more and more wool, and no doubt there would be just as strong a demand at future Dominion sales. WOOL FOR JAPAN (By Telegraph.) (Special to the "Evening Post.") DUNEDIN, This Day. The Tokyo Maru arrived today from Sydney to pick up wool from recent Dominion sales and will take from this port 9000 bales, which will be delivered to Japanese mills about a month after the date of sale. • BRADFORD TOPS RISE IN RATES Messrs. Wright, Stephensoh, and Co., Ltd., and Abraham and .Williams, Ltd., report having received advice from their Bradford agent regarding the tops market, reading as follows; — Merino tops are 2d up and coarse crossbred tops are id up. Other crossbred tops are from Id to lid up. Topmakers are protecting themselves in view of developments in the raw material market. Several topmakers have withdrawn quotations. Users are not disposed to follow the rise. WOOL IN KENYA. Mr. N. Parker, chairman of Dalgety and Co., referring to the company's interest in wool in Kenya Colony, said that production is roughly 1,000,0001b a year. It is generally sold when only of six months' growth, shearing taking place twice a year; and, for this reason, the shortness of the staple makes it only suitable for a limited number of users. However, largely on account of its fineness and good yield, Kenya wool is popular and me£ts with a good market. AUSTRALIAN SHARES EXCHANGES REOPEN (By Telegraph—Press Assn.—Copyright.) SYDNEY, January 4. The Sydney Stock Exchange today reopened auspiciously after the holidays. There was ample evidence of a rising trend in values. The beneficial rain throughout the country and the bright outlook for wool consequent on the settlement of the trade dispute with Japan caused pastorals to strengthen. Commonwealth bonds were actively traded. Tin shares were firmer. Sales;— Bank of New South Wales, £36 ss; Commercial Banking Co. of Sydney, £21 17s; Colonial Sugar, £43 12s 6d; United Insurance, £10 16s; Associated Newspapers, 24s 6d; British Tobacco, 49s 9d; Tooths, 575; Toohey's Brewery, 34s 3d; Australian Drug Houses, 28s; Goldsbrough Mort, 38s lOJd; Henry Jones Co-op., 48s; Millaquin Sugar, 445; Electrolytic . Zinc, 54s 6d; ditto, nref., 565; Farmers, 345; David Jones, 48s 3d; Anthony Hordern, 19s 9d; Australian Gypsum, 22s 6d; Mauri Brothers, 73s 3d; W. R. Carpenter, 455; John MoGrath, 41s 6d; Clifford Love, 53s 9d; Edwards Dunlop, ex dividend, 475: Victoria Nyanza Sugar, 15s 9d; Woolworths, Ltd., ordinary, buyer £7 17s, seller £7 18s, sale £7 17s 6d; Selfridges, sales, 38s; Mt. Morgan, 17s 6d; Mt. Lyell, 42s 3d; Broken Hill Proprietary, 83s 6d; ditto, new issue, 71s; Broken Hill South, 51s; North Broken Hill, 82s 6d; Kuala Kampar Tin. 19s 9d; Rawang Tin, lis Gd; Larut Tin, 18s; Placer Development, 98s 6d; New Guinea Goldfields, 5s 4d; Sulphide Corporation, 16s. MELBOURNE, January 4. On the Melbourne Stock Exchange today, the bond market opened slightly easier, but investments remained firm on quiet trading with a strong market for Barriers. Mt. Lyells, and Mt. Morgans. Sales:—Carlton Brewery, 60s; G, J. Coles, 90s;. Drug Houses. 27s 9d; Australian Glass, 91s; DunlOp-Perdriau, 18s; ditto, pref., 33s 6cl; Goldsbrough Mort, 38s 9d; Electrolytic Zinc, 53s 9d; ditto, pref., 55s 9d; Mt. Motgan, 17s 8d: Mr. Lyell. 41s: Broken Hill Proprietary, 83s 3d; Broken Hill South, 50s: North Broken Hill. 80s; Zinc Corporation, £7 17s; Tongkah Harbour Tin, 24s 9d; Emperor, 19s sd; Loloma. 23s 9d; General Motors, 23s 9d: Kauri Timber, 23s 6d; Melbourne Electric, DOLLAR BATES. The Associated Banks (other than the Bank of New South Wales) quoted the following dollar rates today, on a New Zealand currency basis. They are subject to alteration without notice. U.S.A. Canadian dollars, dollars (Per £1 (Per £1 N.Z:) N.Z.) Selling— T.T 3.93J 3.93? On demand 3.94 3.93,S | Buying— On demand 3.981 3.98