EFFECT ON TRADE.

Hawera Star, Volume XLVIII, 13 October 1924, Page 5

EFFECT ON TRADE.

BRITISH ELECTIONS. VIEWED PHILOSOPHICALLY. BY CABLE—PRESS ASSOCIATION—COPYRIGHT. LONDON, Oct. 11. The Stock Exchange has taken the defeat of the Government quite philosophically, and the approach of a general election has caused no ill effects; indeed, financial circles generally appear to regard, the political situation with satisfaction, and all departments of the Stock Exchange, both investment and speculative, are noticeably firmer. “Gilt-edgeds” have been in demand at hardening prices, and the new Queensland issue has risen to three-quarters. premium. Home rails also show great buoyancy, after a period of. depression, apparently on the assumption that the Government’s defeat has deferred the question of the nationalisation of the railways. The most satisfactory feature of the foreign exchange market is the strength of sterling in New York, because usually at this time seasonal influences cause it to depreciate. Apparently New York is' “bullish,” and is believed to have been a large seller of dollars and Continental currencies, while at the same time buying sterling steadily. Describing the wool situation, a wellknown authority writes: “The position of merinos lias become complicated by Australian credit difficulties, especially after the recent spectacular rise due mainly to the supply conditions. Despite this temporary unsettlemcnt, however, the basis of the position of merinos is extremely sound. Stocks in consumers’ hands have reached a minimum point, and the demand, especially from the Continent, shows no sign of exhaustion. The difficulty is purely one of values, and it remains to be seen whether this high level can be fully maintained. It seems abundantly evident that, allowing for the possibility of minor fluctuations, the trade must reconcile itself to a high level of values for some time to come. “The crossbred situation has cleared, and medium and low qualities are much nearer the intrinsic values than merinos, while the statistical position is almost as strong. The effect of the absence of the B.A.W.R.A. offerings will only be fully realised during the coming year. Moreover, fierce resistance to high values for textile goods favours an increasing demand for cheaper grades.” In reference to the proposed curtailment of the Australian wool sales, the Yorkshire Post understands that a conference of Bradford importers decided not to take action at present, as though credits for wool sales now in progress are in order, difficulty is bound to arise again unless there is an increase in the available currency. But importers are not disposed to agree to any temporising measures, such as that wool be sold now and payment deferred. .Growers have evolved various schemes for prolonging the wool selling season, believing importers will get the advantage by offerings being too heavy now. Circumstances promise to help buyers in that respect, and in view of the high level of prices they are not sorry.that the risk of carrying the raw material for a longer period than usual is likely to be borne by the growers. The council of the Metropolitan Provision Dealers’ Association has passed a resolution disapproving of the action <>f the New Zealand authorities in introducing butter as a proprietary article. The opinion was expressed it was more in the interests of the consumer that such butter should be supplied in bulk form than in packets/