QUIETLY OPTIMISTIC.
BRITISH FINANCE. GOOD NEW TEAR PROSPECTS. BY CABLE-PRESS ASSOCIATION —COPY RIO UT. LONDON. Jan. 2. The Stock Exchange ciosed the year on a cheerful note, there being a quietely optimistic tone in almost an the markets. Gilt-edged stocks snowed firmness ail round. Foreign l.«>nds were mostly steady and home rails were well supported owing to the increased traffic receipts. Industrial." have been quiet, but there lias been considerable activity in oil shares, apparently due to the recognition oi tne ract that the outlook of the oil industry has been steadily improving for some time. There is a general impression that confidence will be apparent when the markets re-open on Monday, and as one financial newspaper says: “On all hands signs are not lacking that activity may be expected throughout the Stock Exchange, for not since 1914 have conditions been so favourable to the investor.” Another financial w riter say*: “T he danger of a further early rise in the bank rate is regarded as having passed, and the year end rise in stening on New York is certainly very encouraging. Hence gilt-edged stocks will probably be fairly maintained until the Jong* awaited trade revival shows signs ot development. Details of the capital issues ol new money in London during 1925 show an increase of nearly £23,909,000 oyer 1924, the total amount reaching £232,514,000. This increase is interesting when it is recalled that the embargo on foreign borrowings, meant that foreign governments floated no loans here in 1925, whereas they borrowed £40,000,000 in 1924, and Dominion Government loans showed a decline of nearly £20,000,000 compared with 1924. The increase in the total amount is caused by the British Government having raised nearly £30,000,000 more than during the previous year, and a number of industrial and commercial issues, which amounted to £109.000,000 compared with £71,000,000 in 1924. THE WOOL TRADE. The wool trade prospects are discussed in the annual reviews of the two leading selling brokers. The Charles Balme Company writes: “In prance the uncertainty of the future course of exchange 'is causing traders to adopt a waiting policy. In Germany the wool industry has not sufficient capital to finance its purchases, and is finding difficulty in raising credits, but it undoubtedly requires considerable .supplies of raw material. faking all the circumstances' into consideration, it seems probable that the current prices w r ill be maintained during the early part of the year, though the irregularity of the Continental demand may cause fluctuations, but later, if France and Germany are enabled to resume operations on a large scale, there should be a more stable market and some recovery in prices. The Schwartze, Buchanan Company writes: “The present fashion for women’s wear materially reduces the consumption of wool. \\ e must also bear in mind the extraordinary expansion of tlie production ol artificial silk and the record cotton crop in America, as both oi these articles compete to * a certain extent with wool. Fortunately the present winter promises to be cold. This should stimulate demand for heavy goods. “Taking everything into consideration. we incline to the view that with wool on the present basis there should not be much danger, and there should be a reasonable prospect of the maintenance of prices, possibly with minor fluctuations, hut there is no prospect of any material improvement in the near future unless there is a general revival of trade.” BETTER DEMAND FOR FRUIT. The “eat more fruit” slogan appears to be producing a satisfactory result. At a recent meeting of the Glasgow Retail Fruit Trade Association the chairman expressed the conviction that more fruit is being distributed, not only by fruiterers but also iiv grocers, and now fruit shops are springing up in every district m Glasgow. Other speakers corroborated his statement. Tlie excellence of Australian sultnn;lß is referred to in a review hv a leading Liverpool dried fruit firm, which congratulates the growers and expresses the hope that the satis, factory season in 1925 will spur them on to reach a yet higher state of perfection in crops and packing, while tin's year showed a welcome improvement in quality and grading.
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Hawera Star, Volume XLV, 4 January 1926, Page 5
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688QUIETLY OPTIMISTIC. Hawera Star, Volume XLV, 4 January 1926, Page 5
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