MONEY AND TRADE

Evening Star, Issue 20311, 21 October 1929, Page 9

MONEY AND TRADE

LONDON'S REPORT SHARP DROP IH STOCKS TIN AND WOOL POSITIONS DISCUSSED Press Ascociatioii-By Telegraph -Copyright LONDON, October 19. (Deceived October 21’, at 10 a.ra.- ' The Stock Exchange had a distinctly depressing week after a fairly cheerful beginning. The hopes of improvement were shattered by a fresh outbreak of liquidation, which grew more intense daily. It came from all quarters, the result being that a wave of pessimism swept throughout the markets. Scarcely any section escaped, investments being as depressed as speculative shares. Giltedged stocks began the week with a show of strength stimulated by the improving monetary conditions, the Bank of England’s acquisition of gold, and the steady advance of sterling in New York, but those factors did not check the liquidation Which set in, and the later downward movement of prices fully offset the slight advances earlier in the week while Australian stocks dropped persistently all the week in consequence of the elections. There were drops ranging from 5s to £1 per cent, compared with Thursday’s cabled quotations in thirteen issues, the loans of every State as well as those of the Commonwealth being affected. It should be pointed out, however, that the falls are not the result of any extensive selling, but with markets depressed dealers are unwilling to take stock except at lower levels. TIN. One of the outstanding events of the week has been the drop in the price of tin. This ,fall on Tuesday to £lB9 16s ,3d was the lowest since August, 1923. Yesterday it fell further to £lB4 13s <)d—a new low record, which makes a striking contrast to £226, the highest price last year. One of the most authoritative metal commentators says tho condition of the market is anomalous, because the statistical position, apart from the concentration of abnormally heavy stocks in Britain, favours a moderately optimistic view instead of the undiluted pessimism which led to the wide liquidation and general distraction this week. There are rumours that some producers in the East are withholding the output from the smelters rather than accept the present prices. WOOL. The Bradford wool trade is still hampered by the prolongation of the wages dispute, hut a definite settlement is expected within a fortnight. Meantime there lias been increased activity in merino tops, which have shown a general increase of 4d within the last ten days. Tho Yorkshire ‘ Post ’ says : “ Tins rapid upward movement evidences the extent to which spinners failed to cover requirements lor the immediate future. Tue recent advances in tops have already allected the wool sales in Australia, but a more sober feeling is now noticeable in Bradford, which is playing tor time to see if a response comes from the cloth end of the trade.” The withdrawal of so much wool from the first half of the Australian selling season is not having the desired effect, as many manufacturers refused to follow the rush which, sent up prices. It the growers do carry forward one-third of tneir offerings to the second half of the season it will prejudice the owners in the new year. This week’s advances in tops only strengthened the determination to go cautiously rather than to buy in feai of higher prices in the new year. The immediate requirements have been covered, and tho consumers in Yorkshire are likely to wait rather than to speculate, and to let. growers have tho risk of carrying supplies of raw materials. —Australian Press Association.