THE HOME MARKETS

Evening Star, Issue 18668, 24 June 1924, Page 7

THE HOME MARKETS

FORTNIGHTLY REVIEII WOOL POSITION DISCUSSED. Press Arsociataon—By Telegraph—Copyright. LONDON, June 22. The Stock Exchange has been at its quietest during the week. The Ascot Meeting was responsible for decreased attendances and some loss of public interest, but there has been an underlying fooling of increased confidence, and this is reflected particularly in the firmness of gilt-edged stocks. The new Trench Ministry is welcomed as a probable stop towards a reparations settlement, while the defeat of Genera! Smuts lias shown no appreciable influence —in fact, it has scarcely produced a ripple in the Kaflir market. Gilt-edged stocks have felt the benefit of the relatively cheap money, and brokers report a (Steady absorptoin of high-class investments. The most, recent issue by tho New South Wales Government, such a large percentage of which was left on the underwriters’ hands, has improved a little, and is now quoted at Ij per cent, discount. The ‘ Bankers' Magazine ’ shows that the value of 365 representative stocks at the end of May was £169,000,000 above the January level The ‘ Spectator ’ points out that' if the hopes of a restoration of European political confidence arc realised amt followed by increased activity in interim liona; trade, there may be later a tendency for industrial stocks to benefit at the expense of gilt-edged securities. SLACKNESS AT BRADFORD. The ‘Yorkshire Post ' points out that unemployment in the Bradford textile trade is heavier now than it was earlier in the year, and that tho position has been made worse by the demands for increased wages,, which the employers have definitely refused. Tlx> recent decrease in the activity of tho Bradford mills, tho paper says, is chiefly duo to a decline of trade in cross-bred yarns with Germany, owing to tho inability of buyers to pay as a result of the Gorman restrictions on the sales of foreign currencies. THE WOOL POSITION. An interesting summing up of the. position in the wool trade was given by Mr Ernest Gate', at tho annual meeting of Salts, Salt aim, Ltd., whoso mill Mr S. M. Bruce, Mr Massey, and Mr 11. S. IV. Lawson, and others recently visited. Mr Gates said that tho wool trade had two didos. Britain’s position in the wool trade seemed to have widely increased at the expense of tho manufacturing business. In other words, while. Britain had maintained bor supremacy as a wool transporter, racichant, and financier, she was in danger ot losing her manufacturing trade. Armchair economists advised that the solution was a reduction of the selling prices, Iml these simply made up the cost of raw materials, labor, interest, and taxation. The British inamifact nrers were pijfuared to work for as little profit, as the foreigner. They paid the highest wages in the. world except. America, where (Imre was bigli protection. Britain's taxation was the highest in the world. Britain could not obtain her wool any cheaper, because her competitors could obtain .sterling credit for their wool purchases as easily and cheaply as the, British manufacturers. The results had boon reflected in the. trade during the year. Wool had been relatively dearer than tops, tops dearer (ha a yarn, and yam dearer than cloth. To ail except those in the strongest financial position, this was an extremely serious matter. Mr Gatos, examining tho prospects of overseas trade, pointed out the limited buying capacity of Europe and the difficulty of surmounting the United Slates tariff. lie added; "The dominions are buying increasing quantities of our cloth, and we have reason to show gratitude for the preference which we enjoy in those markets.” MANUFACTURE OF WOOL BACKS.

Serious attempts are beta" made in Yorkshire to manufacture wool packs of ■woollen materia! owing to the seiious damage caused to tuo jnfe packs through an admixture of jute fibre with wool, which defies eradication at every stage of manufacture, anil entails heavy costs in burling the cloth. Various woollen materials are being mode up into packs in an attempt to reach a bag weighing below 41b. which will stand books and not stretch unduly. A committee representing various sections of the Bradford trade is supervising the experiment. The suggestion is that the wool buyer should pay half the extra cost ami that used bags be reshipped to the colonies for use again. By tin's means it is expected that ultimately the cost to the grower will he no greater than that of (he present jute, pack. All brands ami marks will be on a detachable square of linen sewn on to the bale. BUTTER. New Zealand and Australian buffer lies enjoyed good prices, which are unusually high in relation to Danish. This is di e to the falling off of Germany's demand for Danish produce; but tho market appears; to have reached tho peak, asd everything now depends upon whether the Drench Government, in its anxiety to keep dowfu the cost of living, will extend the embargo on butter exports. .As the matter stands, tho embargo will be lifted mi July 1, and when it is removed very heavysupplies will reach London, which, together with 10,000 casks of Siberian which have just arrived, and the expected increase in Home and Irish supplies, w.ij probably more than suffice to meet the demand. APPLES. Apples are. maintaining their prices exceptionally well, but six or seven steamers are still to arrive., while the warm weather of tho past few days is loading to a dailv increase in the quantities of British and* French soft fruits available. —A. and N.Z. Cable.