TRADE REVIEW

Hawera Star, Volume XLVI, 14 February 1927, Page 9

TRADE REVIEW

LATE EDITION

STOCK EXCHANGE STRONG TRENCH WOOL TRADE. DAIRY PRODUCE: POSITION. BY CABLE —PRESS ASSOCIATION COPYRIGHT Received 9,40 a.m. to-day. LONDON, Feb. 12. The inherent strength of the Stock Exchange,position has been 'shown during the past fortnight, for despite several adverse factors, most sections have remained firm with a cheerful tone. Even when the Chinese situation looked the ugliest there was no sign of weakness and now developments in China seem to be favourable, as shown by Sir Austen Chamberlain’s reassuring statement, considerable fairness is apparent. It might have been expected that the reduced dividends of three great railway companies would have caused a depression in home rails, but the result was exactly the reverse. Ever since the dividends were announced leading rail stocks have been in demand at advanced prices. Apparently the operators are glad that they know the worst about the past and the nightmare about uncertainty has been removed. A feature this week has been the great activity in oil shares, in which enormous business has developed. Even considerable profit taking sales failed tik cheek the advance of prices. With to the position of securities generally, they now stand at the highest, since the war., The Hankers’ Magazine, in a monthly valuation of 365 representative securities, show that they appreciated during the four weeks ending January 19 by no less than 120 millions.

According to the report received by the Overseas Trade Department from its commercial counsellor in Paris, the French wool industry, in the opinion of many manufactures, has completely recovered from the severe damage received during the war. The report adds: "The industry has received considerable accession in strength by the restoration of the Alsace Lorraine. Several minor centres have undergone great development, and in many places new wool Avorking factories haA’e sprung up during the last six years. This prosperity has, furthermore, enabled the manufacturers to lay the firm foundations for enterprises, to Avrite off considerable liabilities incurred for neAY construction and plant and to form adequate reserves.” The butter position show’s little change. There is only a limited demand for neAv NeAv Zealand, buyers apparently preferring Australian ■ at about eight shillings per hundredweight less money. A satisfactory feature of tlie trade is the steady demand for stored and lower grade buttors, Avhich has resulted in a. great reduction of heavy stocks Avhich filled the. cold stores at. the commencement of the season. Arrivals from overseas are beginning to decline the imports in January being 475,741 cAvt., as compared Avith 672,651 for the preA'ious January, so there does not seem much likelihood of any relapse in A’alues for some time, especially as the Contintal markets are very firm. The unfairness to Australia of'the proposed restriction on clearances of Avine, CA’en in the amended form, i 3 illustrated by official statistics of clearances in January, Avhich amounted to 161,778 gallons, as compared Avith 87,970 for January, 192 G. This great increase is undoubtedly partly due to the 'high price of spirits,, and therefore it is interesting to note that Seor-' tish distillers are confidenly anticipating a reduction in duty in, the forthcoming .Budget. It is said that they expect the duty to be reduced from 72s Gd to' 50s per proof gallon. This Avould enable the retail price of AA'hisky to be reduced by about half a croAvn* per bottle from the present retail price of 12s 6d., Such a reduction Avould probably cause, a material increase in consumption, and the distillers ’ .A-ieAv is that the increase aaull result in a greater yield to the revenue than at present. It remains to be seen Avhether the Chancellor of the Exchequer accepts this vie Av. The Empire Marketing Board is actively pursuing its propaganda campaign, Avith results Avhich appear to be satisfactory. The latest development is the securing of the largest and most central position in the British AdA’ertising Exhibition, to be held in July at Olympia, in connection Avith the Advertising Associations’ convention, Avhich Avill be. attended by tAvo thousand experts from all parts of the Avorld. The board is arranging to make the finest display of Australian produce yet seen in London and the exhibit. is "likely to obtain a great amount of publicity. ' ,