TRADE AND FINANCE

Evening Star, Issue 19198, 15 March 1926, Page 5

TRADE AND FINANCE

LCIiDQN'S REPORT STOCK EXCHANGE PRICES FIRM Press Association—By Telegraph—Copyright. LONDON, March 14. (Received March 15, at 9,5 a.m.) Tho Stock Exchange has _ been putting up a brave fight and winning against a combination of adverse influences, which might well have caused a serious slump in values. There have been a panicky fair on the New York Exchange, a political crisis in Franco with a consequent fall in the Iranc, fears of an engineering lock-out in England, uncertainly about the coal report, and a threatened deadlock at Geneva. Tho cumulative effect of all these lias failed to do more than restrict business, and the general tendency of prices on the Stock Exchange lias been firm, with tho exception ot home railway stocks and oils. The recovery in tho price of raw rubber bad a corresponding effect on shares. A feature of the Stock Exchange business is tbe success attending the now capital isues of four industrial concerns which have been subscribed this week. Two new loans under tho Trade Facilities Act have been underwritten —£2,000,000 for tho Dorman, _ Long Company for tho development of their coal mines in Kent, and £2,750,001) for tho Blue Star Line for the construction of eight new steamers. Both of these issues are at 5 per cent, at par, and as they arp guaranteed by tho Government their full subscription is probable. Other issues are talked about, and a. Brazilian loan of £2,500,000, at 7 per cent at 95 is coming next week. Meanwhile nothing is heard of tho New South "Wales issue. The prevailing opinion in financial circles is that it is being held np because the Premier , (Mr Lang) wants a higher price than the Stock Exchange is willing to give. WOOL TRADE. Wool traders appear well satisfied with tho course of tho London wool sales as indicating confidence in the present level of values, but it is pointed out that this month_ is a critical one. as 500,000 hales will he offered in London and Australia in March, which is a hugeriqnantity to lift under present conditions. The ‘ Economist’s ’ Bradford correspondent takes a hopeful, view of tho situation, and says that unless something quite unforeseen happens there should be a steady expansion of business. For months past manufacturers and spinners have been working on hand-to-mouth lines in the belief that values would not hold. There is now a disposition to accept the current level as a sound basis of legitimate trade, and to look further ahead. AUSTRALIAN WINE.

.According to trade newspapers Australia’s wine propaganda is already bearing fruit, and since the advertisement first appeared in the ‘ Daily Telegraph ’ on March 3 there has been a continuous stream of inquiries regarding the various types of wines, but even before this the demand was most satisfactory, and the Board of Trade returns for February show that the home consumption of Australia’s wines for tho first two months in 15)26 amounted to 191,000 gallons compared with 04,000 gallons m the corresponding period of last year, and 128,000 in 1925. This increase is particularly gratiiying, as tho total homo consumption of all classes of wines for these two months was 33,000 gallons less than in 1925. NEW ZEALAND HONEY. Another dominion product which is benefiting from publicity is New Zealand honey. Not only is this meeting with a .steadily-growing demand in Great Britain, but Germany is now taking considerable quantities, which are being offered in 260 shops throughout the country. BUTTER.

The butler trade appears at last to show signs of emerging from the do pression which ("listed tor so long, and quiet, good trade is being done this week. Tho retailors arc apparently getting to tho end of their stored boxes, and the approach of Easter has also stimulated sales. Another _ source of demand has boon Canada, winch has taken 40,000 boxes of Australian butter off this market. Against this improved demand must bo set the fact that there are largo slocks stored here, and the European production of butter is Okcly to increase steadily.—A. and JN.Z. Cable.