BRITISH FINANCE

Hawera Star, Volume XLVIII, 15 September 1924, Page 5

BRITISH FINANCE

GAMBLE IN GERMAN BONDS

' v OUTLOOK OBSCURE, . Xy ,

THE WOOL MARKET

BY CABLE—PRESS ABBOCI AT lON—COP Y RIGHT • 'LONDON, Sfept. 13. With, the clcse of the holiday season there was a slight expansion of business oix; the Stock Exchange, though no appreciable revival was noticeable in tfl»- leadirg markets. The only briskness has been in the foreign market, where the’gamble in German bonds continues on a considerable scale. The generd position on the Stock Exchange is; well described by The Spectator’s financial editor, who writes : “The big professional operators are doing little or nothing. The public is not selling, buffs quietly absorbing either investmente'-kr; semi-speculative stocks according individual fancy, and the effect of sich purchases on prices is emphasised/by a sound technical position in tlieiharkets and a complete lull for six we<ks in any important capital flotations of an investment description.” Wth regard to the future The Spectator adds: “Those whose opinions usually ccjint for much in banking, finance, andhommerce are not only finding -the .rutlook obscure, but are inclined topiscern a good many difficulties With the end of Septem•vher: theWjis little doubt that there will be a sjieqy, and, perhaps, an important revyal in capital flotations, and while it is recognised that investment resource?; are considerable the big German lo;h and the Russian Treaty undertaking • to give British guarantee to a' largj loan may have a depressing effect!>K the markets.’” The;, writer anticipates that the Housebf Commons will turn down the Rqssiot Treaty. This view is endorsed by otier financial writers and experts, Mr. E. Hilton Young, exFinaisial Secretary of . the Treasury, who Thys the loan is little likely to mateialise. The mere holding out of the «6pe of it has done much harm. Siraiarly, The Economist says: “We do »t believe there is any chance of the House of Commons sanctioning a British guarantee for a Russian loan. Qutfc-apart from all questions of Russia?; present position and policies, the . obictions are very strong, and we even dctfet whether the Government could obain Parliamentary sanction for guar. aitfeeihg a German loan, which is an idispensable step in the plan for Europ£n: recovery if such a proposal, were Spot.’” ; 'Reports from the French wine-grow-fig districts are far from optimistic e'garding the vintage, -which' commences about the end of- September. Domplaints about,the weather come from all districts, the. absence of sun, abnormally cold nights and heavy rains having seriously affected the ’ vines. Vignerons pinned their hopes on a fine sunny September, but so far they have been disappointed, for the weather has not improved; and the wine harvest is likely to he‘deficient both in quantity land quality. In anticipation of a poor result the holders of stocks of 1923 vintages are raising. the prices. In the meantime the trade in Empire wines continues most satisfactory, and the wine trade newspapers are urging. Empire importing .firms to “dig themselves in” more:firmly with,the British retailihg and distributing merchants. : Revised' figures for the wool sales, opening, on Tuesday, give the, total available as 182,500 bales, of which Australian and New Zealand wool amounts to 148,780 bales. . Expectations are funning high regarding the probable ,coitrse of values. Most people in the trade, taking into consideration the sensational advance in -tops which has occurred since July, anticipate a rise «*f ten per cent, in both merinos and crossbreds. Meanwhile cloth-makers are complaining that they cannot get . for their cloth anything like the prices warranted by the current rate for yarns. Tailors, however, have’ taken time by. the forelock, and many have, already put two guineas on the price, of suits.