MONEY AND MARKETS

Evening Star, Issue 19045, 14 September 1925, Page 1

MONEY AND MARKETS

A KOAEFUL TONE -a—.WOOL OUTLOOK GOOD* Press Associatioji—By Telegraph—Copyright. LONDON, September 12. After a period of dullness almost approaching depression, the gilt-edged section of the Stock Exchange developed a much brighter tendency yesterday, thanks chiefly to the abundant supply of cheap money. Previously monetary conditions had been unfavor able, and there was a general thought slight decline in all British Government stocks. Yesterday, however, there was a revival of public interest, with considerable buying, and prices showed a general recovery, following the lead of the 3t per cent, conversion loan, which advanced three-eighths. The tone is now distinctly hopeful, there being an impression that with the close of the holiday season business will improve. Homo Eads and industrial stocks generally have been adversely affected by the inflammatory speeches at the Trades .Union Congress, and also by the Board of Trade returns, which reflect the existing industrial depression, and tend to check any feeling of optimism regarding the home trade outlook; but rubber shares continue firm, and the fortnightly settlement in these was a very heavy one. FOREIGN EXCHANGES. In the foreign exchange market there have been considerable dealings in dollars at rather weaker prices owing to dearer money in New York, but the outstanding feature has been the sharp recovery of the Italian lira following the Government’s drastic measure to protect the lira, from speculative influences both at home and abroad. ' WOOL FORECASTS. The opening of the wool sales next Tuesday is awaited with even greater interest than usual in view of the large quantity to be offered. The general anticipation seems to be that prices will be firm. The ‘Economist’s’ wellinformed correspondent says: “ The big weight to be catalogued frightened no one, and a very sound opening is expected. The Continent is undoubtedly in a buying mood, and it looks as if France is going to force the pace. This is all to the good for Australian growers, but what really matters most to the homo trade is whether the fabrics can bo sold on the basis of the cost ot wool bought at to-day’s values. However, expectations favor a good demand for raw material. The prices obtained at tVe hist sales should be easily forthcoming. Wo certainly think that the manufacturing position is generally better than it was. It is just a question whether the big weight of crossbreds can be lifted at top-notch July prices, hut everything seems to indicate a very heavy demand for wool. Another correspondent points out that the French demand is mainly for military purposes in North Africa, atid should‘the hopes of a vital blow being soon struck against the Rifts he realised the financial position of Franca will cause a speedy cessation of wool having for the army. Should Franco suddenly drop out of the market wool values will be just as importantly influenced. NEW AUSTRALIAN TARIFF. Much apprehension will bo expressed in the heavy woollen trade regarding the new Australian tariff. According to Dewsbury correspondents, the tariff will seriously handicap trade in that district. It's effects arc already being felt. The agent of an Australian jinporting firm telegraphed to a. local ti nil CiUicclhiig orders; for two lots of cloth which were practically ready tor delivery, and the local firm in question felt obliged to accept the cancellations in order not to prejudice future transactions. Losses have been also sustained by other firms owing to similar cancellations. THE BUTTER MARKET. Butler prices continue to harden, and traders generally expect firmness will be maintained for some time, ns supplies will be moderate until the new season’s Australian and New Zealand butter begins to arrive, and at the moment strikes are causing considerable doubt about when that will be. Supplies from other sources are rapidly diminishing, cold 'weather in Denmark having a Ready reduced production. Germany’s production is also declining steadily! and Germany is buying largely Dutch "and Danish, though these purchases will probably cease at the end of the month, when the German import duty of 11s a hundred-weight cornea into operation.—A. and N.Z. Cable.