TRADE REVIEW

Hawera Star, Volume XLVIII, 16 March 1925, Page 5

TRADE REVIEW

THE MONEY MARKET,

WOOL AND BUTTER,

GENERAL PROSPECTS BRIGHT

BY CABLE —PRESS ASSOCIATION—COPYRIGHT Received March 16, 9.5 a.ra. LONDDN, March 14. The st'ock exchange has passed through a period of nervousness since the' bank rate was raised Jast week, and the further advance in money rates at .New York made some timorous people talk about the possibility of our rate being raised to 6' per cent, on Thursday, but this was unnecessary, as money became easier both here and in New York, and a rather more settled feeling lias developed, with a slight all-round rise in gilt-edged securities. Owing to adverse monetary conditions, several recent investment issues niet with a very poor response, and anxiety was expressed in some quarters regarding loans which were thought to be imminent. There was some.talk about Victoria having to make a new issue to meet £250,000 4J per cents maturing on April 1, but it was apparently forgotten that Victoria floated a loan of six millions in December, so had plenty of money available here. The announcement was made Jast night that maturing stocks would be paid off on due date, but no mention was made of fresh borrowing, so it was generally thought that Victoria was utilising some of hfer six millions and deferring a further issue till money conditions were more favourable. New South Wales has three millions of 32 treasury bills maturing on. the 18th, but nothing yet has been disclosed about how they are to be met • BUTTER MARKET. A feature of the butter market has been that Australian is realising higher prices than New Zealand. As already pointed out, this is due to a temporary shortage of Australian, and as soon as supplies increase there will probably be a margin of a few shillings in favour of the Neiv Zealand product, but the fact that Australian has for once surpassed New Zealand Has given great 1 satisfaction to the importers of Australian butter, who have long been contending that disparity in prices was not justified, especially in view of the excellent quality of the Australian butters this season. WOOL SITUATION. Regarding the wool position, as indicated by London sales, a Bradford correspondent says: “The course of trade in Coleman Street has done something to remove the extreme uneasiness which was so prevalent before the opening of the auctions. A safe trading basis seems, well within sight, and if prices remain steady throughout the series, tJiere is every reason to believe that users will regain confidence and resume business in tops and yarns. Buyers in all sections have been holding off as long as possible in the hope of being able to obtain favourable rates. ]t is manifest that everything now hangs on the course of raw material; if prices remain firm there should soon be a distinct improvement right through the industry.” GENERAL TRADE. Discussing the trade position as a whole, Barclay’s Bank review says: — “More hopeful views have been noticeable than for some time past. They still continue and from the purely banking point of view there are numerous indications of progress. Documentary credits have increased during tlie past twelve months, both in number nrjd in amount, and there seems to be no doubt that they represent an appreciably larger volume of trade, although the increase is chiefly attributable to enlarged trade between other countries, for which settlements have been made by means of sterling credits in London. It is partly due also to tile greater activity of British trade, while the expansion of international trade is an encouraging feature, because of its ultimate beneficial effect upon the trade of tliis country ”