FINANCE & TRADE

Hawke's Bay Tribune, Volume XVII, 26 September 1927, Page 6

FINANCE & TRADE

THE LONDON MARKETS DEMAND CONTINUES FOR WOOL PRICES ON LEVEL WITH OPENING RATES (Received 26. 8.5 a.m.) London, September 24. Activity in the industrial section of the Stock Exchange fell off considerably last week, many speculators taking their profits ana people were wanting to sell shares instead of to buy them; but during the last day or two a firmer tendency has d« veloped. and there are signs of this continuing. Vilt-edged stocks have been dull, as a result of the Government’s conversion proposals, but the market is gradually taking a more optimistic view of the new offer, and is said now to be meeting with good response in the belief that any further issue made will be on a less favourable basis. THE WOOL SALES. The wool sales are proceeding satis factorilv. There is no sign of anv slackening in the demand, and prices are fully on a level with those established at the opening. The home trade are the principal operators, with Germany a good second. America has been taking a fair quantity of slipes but France has been operating only on a small scale. Commenting on the difficulties of manufacturers, the “Statist’s” wool correspondent compares the pre war prices for tops He savs: “In Bradford the values range from 30 to 86 per cent., compared with September. 1913. The greatest appreciation is in merinos, but the cost of wool is consistently keeping well ahead of the price at which is can he sold as tops, yarns and piece goods. It is impossible m lose sight of this fact. Although an improvement is admittedly com inc about in manufacturing condition* spinners complain that yarns are being sold at prices not covering w* cost of tops by pence per pound Manufacturers sav that cloth is too dear to find a ready market. Recognising these facts, it must be admitted that the recent week’s business in tops, yarns and piece goods has shown some expansion More machinery is working. Progress is tardy, but it is fairly soundly based, despite the unsatisfactory financial position in which many firms admittedly are ’’

AUSTRALIAN SULTANAS The demand for Australian sultanas has ouietened down somewhat afte j ’ exceptionally heavy sales in the first fortnight in September, but fair sales are being made of low grades. The cause for this satisfactory state of affairs is the partial failure of '-be Smyrna crop, which was severely damaged, first by drought and later by heavy rains during the drying period. Consequently though the crop will probably be 4.5,000 tons.. only about 10 per cent, will be good quality compared with 65 per cent, in 1926. most of the remaining 90 per cont. being badly rain-damaged. PROPOSED AUSTRALIAN FRUIT CONTROL. In order to give Australian fruitgrowers its opinion regarding the proposed control, the National Federation of Fruit Trades Association held a special meeting, and after several hours’ careful consideration, unanimously adopted the following resolution:— “The federation is of opinion that for highly perishable products, such as apples and pears, control would be very detrimental to fruitgrowers’ interests. The federation has spared no efforts to secure a reduction of freights, and has met some material success, but offers of r.he bank to guarantee payment of freight on this side would have been declined. The freight was 3/6 a case last season, compared with an average of 2/9 in 1914. The federation hopes in due time to secure a further reduction, also payment at the port of discharge. The advertising originally started 1 by the federation and successfully carried out. was hampered in 1927 bv lack of support from rhe Commonwealth Government, although it had previously promised that it would be given in 1926. COLD STORAGE RESEARCH. “Cold storage research is being practically and thoroughly instituted by the Empire Marketing Board in conjunction with Cambridge. Financial assistance has always been provided in the past, and ths matter cannot be so humanly dealt with hv government boards. Diversion is impracticable for mail and passengei steamers, and is only possible occasionally with cargo steamers when fruit is the major part of the cargo Apples cannot influence the destination unless huge shipments are made.

which is undesirable and the federation does not recommend them. Control and f.o.b. sales are incompatible, therefore the latter would be entirely prevented, greatly to growers’ disadvantage. The federation urge's every grower to vote at the ballot.”— (A.P.A. and “Sun” cable.)