BRITISH TRADE

Hokitika Guardian, 19 January 1937, Page 7

BRITISH TRADE

DROP IN Gl LT-EDGED. (United Press Association—By Electric Telegraph—Copyright). LONDON, January 1(5. The market seems to think that gilt edged securities have passed their peak, and substantial selling lias brought down the prices of most stocks almost a point in the last fortnight. If they continue to fall there must be some further adjustment in industrials, but there does not seem much prospect of activitj'. At present business is concentiated in the mining markets where some of the more speculative shares have doubled in value in a week. r lhej be in petrol has also brought fresh I interest to t’>e oil market. There is some indication that commodity gambles are being halted. Ihe heavy liquidation of most metals has brought down copper and lead. The wheat market is nervous. Resellers are pressing sales of Australian Argentine, and British millers, wh have bought- well, are content to stand off unless something is offered at bargain prices. The future of wheat depends largely on European demand-

London Wool Sales. The general opinion is that the London wool sales have given the sanest lead, and should make for greater stability. All sections of the trade confirm the overseas levels, and encourage users to accept the higher raw rna terial costs. The “Yorkshire Post” considers that the wool position has seldom been sounder. No large stocks exist as in 1984, but top-makers who lost many thousands of pounds i» 1934 through the unjustified rise, are naturally cautious at the moment. Thei policy will depend upon the amount o' encouragement they receive from cli ents, The London sales should bring out this support more freely.

Butter Unsatisfactory. Butter appears to be the subject ot speculative manipulation and has fluctuated considerably in the last week. The general view is that fluctuation., are likely to continue without substantial appreciation. Continentals are inclined to be steadier. Hie Australian egg season has almost, reached its dreard end. Mild weathe. and heavy arrivals from all quarter., totalling almost a 100 per cent, increase, compared with the same periods last year, explain the serious uisorganisation of prices. The city is interested in the announcement that Sir Otto Niemeyer is visiting New York and many join Mr Walter Runcimann in talks with Mi Roosevelt. The general opinion is that England, France and America, are collaborating in a new effort to revive international trade. It is not expetteo that anything approaching the Work Economic Conference will be sum moned, but the- method most likely the used, will be an agreement on sped fie steps towards the economic pad ficatiou of Eurppe.

BRITISH TREASURY BILLS. The total amount applied for in ten dors for £30,000,003 worth of Treasur bills was £7(5,(500,000. The average rate per cent, for bills at three months was 10s 6.33 d, as against 10s B.lld a week ago.