BRITISH TRADE.

Hokitika Guardian, 1 February 1927, Page 3

BRITISH TRADE.

FORTNIGHTLY REVIEW. BANKERS MORE OPTIMISTIC. [Australia &, N.Z. Cable Association.] LONDON, January 2D. The speeches of the chairman at the annual meetings of several great banks have been more than usually interesting. and it is satisfactory to note that the views expressed by M.r F. C. Goodenough, of Barclay’s Bank, Mr Bosclien, of the National Provincial. Mr Walter Leaf of the Westminster, and Mr Reginald M’Kenna, of the London Joint City and Midland Bank, although not unduly optimistic, are certainly not despondent regarding the future of industry. As the “Economist” writes:

“The general impression left, alter a perusal of the speeches, is favourable, for it may he said that moderate, reasoned confidence in the immediate outlook was common to them all. r I he public may he more encouraged by this fact because the pronouncements come from the lips of those having unrivalled opportunity to feel the pulse of the industrial life of the most important areas of Britain.” STOCK EXCHANGE.

The Stock Exchange has had a slight set-hack, chiefly on account of the sudden development of unfavourable monetary conditions and the Chinese [ situation. Hopes which had been entertained of an early reduction of the Bank rate have been clashed, and it now seems likely that a 5 per cent rate must he maintained till April. Giltedged .securities, which had been particularly strong, were chiefly affected, and the new Consols lost the premiums which had been established. There has been some recovery since, and the markets closed much more cheerful than they were earlier in the week. Prices of Colonials have been fairly well maintained. The success of the Nigerian £4,250,000 5 per cent loan at par, which was over-subscribed in an hour, had a tonic effect and prices dosed at their host, notwithstanding; the knowledge that a South Australian loan had been underwritten. ’This had at favourable reception, and the general opinion is that Australia’s first issue in 1927 will he a success. fts flat yield is €5 2s per cent, which is slightly better than the yield ol the last issue of the same stock made a year ago at tho same price, and now quoted at just over 99. WOOL TRADE. ,

The wool sales are proceeding with increasing strength, and the week’s business has heel) most satisfactory for sellers, hut the Bradford people are far from happy, for wool is now well above I heir parity. A Bradford correspondent writes: “ The relative value ot merino wool, both in London and in the Comnion'wealth, is now pence nor pound above the price that can he made for tops in this market. Some importers have cancelled their limits rather than take the risk of buying more raw material on the basis to which it has now been forced, mainly by foreign competition. It is obvious that foreign competitors are able to pay higher prices for wool than ourselves. Some wool importers have come to the conclusion that the lesser risk is to leave the market to these foreign buyers, rather than make the position worse by attempting to compete with them for further supplies of raw materials. Bradlprd at present is the cheapest market in the world in which to buy tops and yarns, anil those who have cheap stocks or contracts are apparently content to continue selling at prices which do not. permit of replacement save at a substantial loss. finer grades ot wool, both cross-bred and merino, are stated to be about 3d per pound too dear in tops for this market. WINE TRADE. Commenting on recent tastings, ike Wine Trade Review ” says: “Australian wines, which for many years occupied a humble place, are now climbing rapidly tne staircase of fame, and one day may even reach the very top. We rejoice at the progress made by wines produced within the f.mpiie. In stating this we are not disloyal to the older wine trade. There is room for all and no one need begrudge Australia her share. We must remember that the present development was only rendered practicable by Britain’s concession of the new Imperial preference, coupled with Australia’s export bounty. Before this, trailing conditions were not favourable. Since then, in a period of .about twelve months, the trade has leaped up a million gallons. That shows what can he done under the present favourable conditions. The ub timato future of the Australian tune trade depends, in our opinion, upon the ability of the trade to consolidate its position before the export bounty is withdrawn or Imperial preference is modified. It is a hopeful sign that the men to whom this work ol consolidation is entrusted are not lacking In tact initiative or enterprise, and, most important of all. a flair for business.”