Finance and Trade

Hawke's Bay Tribune, Volume XVI, Issue 8, 21 December 1925, Page 5

Finance and Trade

British Market Review END OF THE RUBBER BOOM. WOOL AND BUTTER. [By Cable—Press Association—Copyright.} (Received 21, 0.5 a.in.) London, Dec. 19. The loom in rubber shares on the Stock Exchange has come to an end ns the result of a .sharp fall in the price of the raw commodity. There was a brief revival of activity on a slight recovery in the price of the raw article, but to day’s furthest fall of plantation to 45d may be regarded as the coup de grace to the lx>om for this year. Other departments of the Stock Exchange, notably gilt-edgeds, have beer rather depressed owing to the monetary stringency and the fear that the bank rate might be raised, but. the markets improved considerably when Thursday passed without an advance in the rato, and the monetary conditions became much easier. There have been a eon siderable number of new capital flotations, chiefly industrial, during the past fortnight, the total amounting to about £16,000,000, of which £12,000,000 is new money. Several of these were rapidly over-subscribed, but several artificial silk companies met with only a very poor response from the public. FRANC PROVIDING THRILLS. The French fiane has provided thrills in the foreign exchange market this week, for after rising to over 135.00 as a result of the uncertain political and financial situations, it improved yesterday to 127.25 on the announcement of the textile industrialist’s loan scheme, and to-day it is still better a 125.25. It remains to be seen whether this rapid appreciation is justified, for the industricists’ scheme is only in the proposal stage, and further, there is the question whether the United States, where presumably it is intended to raise the money, would grant any new loan until, France has settled her war debts. THE FRENCH VINTAGE A forecast of the French wine vintage, prepared by the newspaper * ‘ Moni teur Vinieolc” states that the yield is considerably better than anticipated in September, the improvement being at tri but ej to favourable weather experienced in many districts in October had a good effect on the vintage and to some extent compensated for the serious losses in other departments. The total yield is now estimated at 63,034,00“ hectolitre®, a decrease of £5.306,000 hectolitres compared with 1924. The Algerian and Tunisan yields bring the total to 75,134,000, hectolitres so apparently France will ha\ 7 e sufficient wine to meet all demands. WOOL TRADE STILL VIRILE. Commenting on the wool position, Mr H. Dawson writes: — Some hopeful features are oegin ning to emerge from tbs recent per plxing conditions. The tension of being caught short of supplies for immediate needs relieved, and more wool is near at hand, consequently users are watching carefully for the best opportunities .for replenishing All this indicates a return to more normal and safe trading after a very disturbed period. There is a strong undercurrent of demand and general anxiety to make early operations at a safe price, which appears in cross breds to have been reached. The lower level of values is encouraging a belter turnover, and more machinery is running. England is again becom ing a more important factor in the world’s markets. In short, the worst phases of the dir>-uatrous year just closing arc passing away, and after the most severe crisis of this genera tion the wool trade emerges still virile and strong.” THE BUTTER SLUMP. The slight improvement in the de mand for butter a wees ago proved only a flash in the pan, and the market relapsed into a state or apathy. This is largely due to the weakness of Danish, which has slumped owing to the cessation of the German demand. On Thursday the Copenhagen f.o.b. price was; lowered to 170 s, equal to about 176 s landed hero, but it has since recovered about 10s. Retailers arc now reducin'; their price, and with best butter at Is Hid and 2s a pound it is hoped there maybe an improvement in consumption, which has undoubtedly been checked seriously bv the high retail prices.— (A. and* N.Z.)