TRADE REVIEW.

Hawera Star, Volume XLVIII, 19 January 1925, Page 7

TRADE REVIEW.

WEEKLY REPORT

STOCKS AND STORES

WOOL POSITION AT HOME

by cable— press association-copyright Received Jan. i 9, 9.10 a.in. LONDON, Jan. I> ■

The little boom on the Stock Exchange, which marked the opening; ”* 1925," was not- maintained tor long, business this week being very slack. Apparently there was over-speculation in some quarters, and at the fii'A sign of reaction, there was a rush of )>*•>- lit taking, with the natural result that there were weaker prices all round. Tea. rubber, UMiiitus, land, ajul other industrial shares all inoVed adversely, though not to a serious extent, am! o-ilt-edgeds are fractionally lower, chiefly owing to the prospect of dearer money and a new issue of requirements in the near future, but the position is not regarded as alarm mg. ft is expected that the effect of the satisfactory outcome of the Allies’ conference will soon make it.seli 1011, and that markets will improve. TRADE OUTLOOK.

This generally appears to be promising and the monthly circulars ot the great banks, which are accepted as reliable and well informed, all indicate a; fairly confident view ol prospect’, ft anee-sheets for 1921 of the "big five” ance-sheets for 1921 ol the ‘‘big live,’ London, joint stocks banks, show considerably improved nett profits. These five lit 1924 showed aggregate nett profits of £10.948.732. as compared with £9,745.224 in the previous year, and £9,938,.909 in 1922. Thu- there was an increase last year of over twelve and a quarter per cent, in profits, following a decline of nearly two per cent, in 1923. WOOL TRADE.

Although nobody in the wool trade appears to expect any great change, iji values at the sales opening in London on Tuesday, there are those who anticipate that the quietness of the American operators in the recent Australian auctions, may be reflected here, and that the high prices orevailing last December will not be maintained all round. A« only a small quantity of greasy crossbreds will be available lor this series, prices for those are hardly Kkely to decline generally. The statistical position of wool is regarded as ensuring that there will be no material fail in values.

An interesting expression of Bradford views is given by Bertram Parkinson. president of the British "Wool Federation. In an inaugural address he said that tjie wool textile industry was struggling through a very difficult period and thq new year had not opened very brightly. Merinos and fine crossbreds were twenty to twentyfive ner cent., and medium and low •pro s-b reds fifty to seventy per cent, nearer than a. year ago. There could be no true prosperity here witli raw materials at such levels, and with exchanges and tai ill's everywhere against us. No one conversant with the wool textile industry would seriously suggest that prices were forced to these levels by Bradford. Ihe real point was that the demand for some time past had been in excess of supply. That would continue until the supply overtook the demand, or prices reached such a level that substitutes would be used increasingly and demand lor wool to that extent reduced. Our continental and Japanese competitors having the advantage of favourable exchanges, lower taxation and low conversion! costs, could afford to pay better prices for wool than we could in both .London and on the primary markets, and could undersell us in both our home and foreign markets with finished products. No- permanent prosperity -at this end of the trade was possible until English manufacture! goods could compete favourably with goods of other countries.