TURN OF THE TIDE

Evening Star, Issue 19777, 30 January 1928, Page 5

TURN OF THE TIDE

BRITAIN’S TRADE REVIVAL BANKERS OPTIMISTIC Press Association—By Telegraph—Copyright LONDON, January 28. During the last few days the “Big Five ” banks have held their annual meetings, and the chairman at each meeting delivered the usual review of the financial and trade position. It is gratifying to note that all of them were bearers of tidings of comfort and joy, and rarely, if ever, has there been such a consensus of optimism. Ore if the financial newspapers hits it off thus: “In a chorus with no discordant note, though with slightly differing empiiasis or caution, they tell u» that trade has revived, is reviving, and seems likely to continue tu revive.” This optimism is reflected in the ‘ Economist’s ’ monthly review of the state of trade, which shows that there is a general improvement in the unemployment position, and while the average wage rates remain stationary the cost of living declined seven points compared with December, 1925. In other words, real wages have risen. These facts show that the state of trade has improved, and such indications as are available suggest the prospect of a continued movement in this direction. AUSTRALIAN LOANS FROM AMERICA.

Interest has been aroused here by the news cabled from New York that negotiations are in progress there fdr an Australian loan of £8,000,000 or £10,000,000. Discussing the subject, the London representative of an important American banking group referred to the increasing popularity of Australian loans in the United States, where an enormous amount of capital is awaiting investment. Ho pointed out, however, that Canada was at present able to borrow there much more cheaply than Australia. The Canadian loan there is yielding the investor 4.48 per cent., whereas Australian fives give the investor 5,13. Canada’s advantage, undoubtedly, to some extent, was duo to her geographical position, but this authority was inclined to believe that Australian credit in New York could be raised to at least a 5 per cent, basis, and in the course of time to 41 per cent. In order to do this it would be necessary to create an increased demand for bonds by advertising propaganda, and also by getting them made trustee securities in all American States. At present Canadian bonds are trustee stocks in all States, but the Australians have not this advantage, except in two or three. WINES AND SPIRITS.

A circular issued to the wine trade by the Southard Company, Ltd., which is recognised as one of the chief authorities, says that the prospects of the trade are distinctly brighter. It is unlikely that the Chancellor of the Exchequer will disturb the wine duties this year, unless ho is convinced that the duties on British wines should be raised to the level of Empire wines. It is also possible that he_ may be induced to raise the dividing line of strength for low-duty foreign wine to that for Empire wine—namely, 27 degrees. The wine trade would welcome both these adjustments. Regarding the exports of British spirits, Southard’s say : “ Canada is now our best oversea customer, taking last year 1,447,000 gallons, compared with *1,168,000. Until last year Australia headed the list, but since she thought fit to increase the duties on imported spirits her own product has gained at onr expense. We suppose it is only right that charity should coim rnencc at home, but, it seems rathei inconsistent that the Commonwealth should penalise our products at the same time that we have granted Empire produce substantial preference. This treatment is scarcely just or in keeping with the policy they advocate of reciprocity. ”

wool, COMPETITION KEEN 1

Tiie feature of the wool sales dosing on Wednesday has been the remarkable steadiness of values and the keenness of competition, Yorkshire, German, French, and Swiss buyers all buying freely. Jt is hardly possible to record any actual advance in prices, but it can safely be said that wherever there has been a change it was against the buyers. As a Bradford newspaper says: “The general desire for cheaper wool remains unsatisfied, and there is little, if any, prospect of a movement towards a lower level. It is one thing to wish for cheap wool and another to. secure it in face of foreign competition, which seems to intensify as the season progresses, and supplies in first hands dwindle.