BETTER PROSPECTS

Hawera Star, Volume XLVII, 3 January 1928, Page 5

BETTER PROSPECTS

FOR CURRENT YEAR.

BRITISH INDUSTRY. an OPTIMISTIC OUTLOOK. by cable—PH.ess association— copyright LONDON, Dec. 31. 'Die Stock Excuaiig® wound up the vi-ttr m great style day uilii qi.»n a tomb in untisu hinds, some or uin.cn closed not iar iron! tne Highest- poim of the year, Business had oeeii somewhat restricted .since the resump ■uoion Wednesday, as is usual at lie ci..i or the year, oat there was a l.iini.c^ all ruond. . . , Just Par ore the House Closed tne announcement was made that the list tor tfiieeiii applications lor the #iew Treasury 5 per cent, bonds had been closed two ciays bpiore the aavertiretime. This evidence tnat subscriptions nad been very heavy had the •.lectin causiiicr the funds to advance. Ims news led to the revival ol ta,k ot an earlv reduction m the bank rate and m cheaper money, and brokers and- jobber;:' ■>cna rated for the New lear ho. id ay m tlio happiest frame of nnnd. Dominion stocks share the firmness, and it is satisfactory to see' the 1 eu .south Whiles loan scrip quoted aabout l-16th premium, this is a goon ieply to the pessimists who ii&d * 3^ ll uttering nasty criticisms .about the Staff? and its finances because the underwriters had to take 62 per c<>nt. of this loan. Somei measure ol the upward tendency oil the Stock Exchange during the year may be gathered lam the fact that 365 representative securities selected by the Bankers' Magazine appreciated by just over 4 per * C Discussing wool prospects the ‘•Yorkshire Observer” says: ‘With smudc-i supplies from Australai and no compensation elsewhere, no one expects any drastic fall iu prices, for, assuming that a slight reduction be posfcib o, competition which would thereby he encouraged would prevent >t trom proceeding far. The wish for cheaper wool is general, but top-makers are not prepared to act on the assumption tnat it will be obtained- They are not deviating from the policy of being on the safe side by basing quotations upon the actual cost of the raw material. It is retorted on reliable authority that the German and French stocks ot raw material are only normal, and in the circumstances it is only reasonable to suppose that German and Irench competition will continue to be considerable ami prevent any undue sagging of values. It is reported that United States; importers are seriously considering replenishment of foreign wools, and thev may be ke?ner competitors for raw material -than they have been in i '-a first half of the season. v\e cannot expect Japan and Russia, to drop ■nut, entirely, and on the whole Bradford will have its work cut out to get in on a favourable level. An optimistic view of British trade and industry is taken by Lord Gamford. president of the Federation of British Industries. Hi? _ says that, ‘‘taken as a whole, British industry looks forward to 1928 with Jess misgiv- ■ ing than in any year since the war. it s now generally recognised that there has been in recent- vi?ars in our interna l trade, but that, comparatively speaking our export trade has been depressed. Fortunately there an? fairly definite grounds for the hope that the next twelve months wall see a- recrudescence ,of our ovi?resa.s commerce. The period of falling prices is at an end, and so is thi? period of the artificial scarcity < old, which gave rise to this. For the first time since the boom of 1910 go.' has flowed into the Bank of England in response to natural exchange movrments. Moreover, no less than half the world’s tonnage of shipping under construction is being built round the shores of the British Isles, which is most welcome news from ithe point cl view of national prestige. _ “I find grounds for optimism in the marked change in the atmosphere of relations between employers and employees,” continued Lord Gain ford. ‘‘ J f onlv we can retain and develop this k-sirit of svniapthv and' co-operation, there need' be little fear for the future.”