TRADE AND FINANCE

Manawatu Standard, Volume XLVI, Issue 29, 4 January 1926, Page 8

TRADE AND FINANCE

STOCK EXCHANGE OPTIMISTIC

OUTLOOK FOR WOOL,

(By Eleotno Telegraph.—Copyright.) LONDON. Jan. 2.

Tho Stock Exchange closed tho year on a cheerful note, there being a quietly optimistic tone in almost all markets. Gilt-edged securities showed firmness all round, • foreign bonds were mostly steady, and homo rails were well supported owing to the increased traffic receipts. Industrials have been quiet, but there has been considerable activity in oil shares, apparently duo to recognition of the fact that tho outlook for the oil industry has been steadily improving for some time. There is a general impression that confidence will bo apparent when the markets reopen on Monday, and as one financial newspaper says: “On all hands signs are not lacking that activity may bo expected throughout tho Stock Exchange, for not since 1914 have the conditions been so favourable to the investor.”

Another financial writer says: “The danger of a further early rise in the bank rate is regarded as having passed, and the year-end rise in sterling on New York is certainly very encouraging, hence gilt-edged stocks will probably bo fairly maintained until tho long awaited trado revival shows signs of development. Details of the capital issues of now money in London during 1925 show an increase of nearly twenty-three millions sterling over thoso of 1924, the total amount reaching £232,514,500. This increaso is interesting when it is recalled that the embargo on foreign borrowings meant that foreign Governments floated no loans hero in 1925, whereas thov borrowed £40,000,000 in 1924, and the Dominion Government loans showed a decline of nearly £20,000,000 compared with 1924. The increase in tho total amount is caused by tho British Government having raised nearly thirty millions more than during the previous year, and the number of industrial and commercial issues, which amounted to £109,000,000, compared with £71,000,000 in 1924. THE WOOL TRADE. The wool trade prospects are discussed in the annual reviews of two of the leading selling brokers. Charles Balnio and Company write: “In Franco, uncertainty of the future course of exchange is causing traders to adopt a waiting policy. In Germany the wool industry has not sufficient capital to finance its purchases, and is finding' difficulty in raising credits, but it undoubtedly requires considerable supplies of raw material. Taking all the circumstances into consideration, it seems probable that current prices will bo maintained in tho early part of tho year, though tho irregularity of the Continental demand may cause fluctuations; but later, if Franco and Germany aro enabled to resume operations on a largo scalo, there should bo a more stable market and some recovery in prices.” Schwartzo, Buchanan and Company write: “The present fashion for women’s wear materially reduces tho consumption of wool. We must also boar in mind the extraordinary expansion of tho production of artificial silk and tho , record cotton erbp America, as both these articles compete to a certain ex.ent with wool. Fortunately the present winter promises to bo cold. This should stimulate tho demand for heavy goc m. Taking everything into consideration, we incline to the view, that with wool on its present basis there should not bo much danger, and there should bo a reasonable prospect of the maintenance of the prices, possibly with minor fluctuations, but not of any material improvement in the near future, unless there is a general revival of trade.” “EAT MORE FRUIT.” The “Eat Moro Fruit” slogan appears to be producing a satisl actor y result. At a recent • meeting of tho Glasgow Retail Fruit Trade Association the chairman expressed tile conviction that moro fruit was being distnouted, not only by fruiterers, but also by grocers, and new fruit shops are springing up in every district oi Glasgow, utiier speakers corroborated the statement. Tho excellence of Australian sultanas is referred to in a review by the leading Liverpool dried lruit him, wlnen congratulates growers and expresses tlio hope that the satistactoiy season in I9Zo will spu them on to reach a yet higher state ot perfection in crops and packing, winch tins year showed a welcome improvement in quality and grading.—a. and N.Z. cable.