RUBBER BOOM.

Hawera Star, Volume XLV, 20 July 1925, Page 5

RUBBER BOOM.

PRODUCES WILD BUYING

REVIEW OF BRITAIN’S MARKETS

BY CABLE—PRESS ASSOCIATION- COPYRIGHT

LONDON, J uly 18. . Features of the Stock Exchange during the past week have been the rubber share boom and the marked strength of gilt-edged stocks, the latter, of course, being responsible for the decision to issue the Australian Commonwealth s loan forthwith. The rubber boom on Monday produced the wildest Stock Exchange scenes witnessed since the war, feverish buying being carried out without- regard to the price or values ol particular shares. This wild orgy received n check on Wednesday, when, in consequence of a slight reaction in th e price of raw rubber, tens of thousands ol shares were rushed on the market. These, however, wer© soon absorbed, and the market rallied. No real slump in these shares need be expected till the price of raw rubber drops consider. Hitherto the Government ha s refused to interfere in the Stevenson production control scheme, regarding the present fancy raw rubber prices as merely a temporary phase which will soon right itself. THE WOOL TRADE.

The results of the London wool saies, both merino and crossbred, infused R better spirit into the raw material section of the Bradford trade, but developments at the manufacturing end have been more disappointing than was anticipated a week ago. New business in partially and fully manufactured goods has not increased to the extent expected when the sales opened, owing largely to the wages dispute caused ‘by the employers’ intimation of an intention to enforce a 5 per cent, reduction ot wages, and, as the workers are determined to resist, a strike appears inevitable from present indications. In view of this possibility neither the spinners nor th e manufacturers are anxious to buy till the outlook is clearer, with the result that neither the London nor the Australian sales had much effect on Bradford, where prices for tops have not followed the lead set by the raw material. DAIRY PRODUCE. The continuance of the dry weather has had the effect of increasing butter and cheese prices. It is noticeab.e that Australian and New Zealand butter has continued to harden, despite the slight weakening of Danish. The former has advanced ever since last Thursday. _ The arrivals from Australia and New Zealand during June were heavy, and there are large quantities in cold stores, but in view of the consumptive demand it will be all needed. The trade forecasts firm prices both for butter and cheese for some time to come. The canned and dried fruit trades have '.both been of the quietest, the latter suffering a lull owing to tlie heavy sales prior to the removal of the duty. It is too early to say whether sellers will he enabled to maintain present prices.