COMMERCIAL.

New Zealand Herald, Volume LXII, Issue 19170, 9 November 1925, Page 7

COMMERCIAL.

LONDON TRADE REVIEW.

LIFTED LOAN EMBARGO.

EFFECT ON STOCK EXCHANGE

GILT-EDGED STOCKS DEPRESSED

By Telegraph—Press Association—Copyright. (Received 7.5 p.m.) A. and N.Z. LONDON, Nov. 7. The removal of restrictions on foreign and Dominion borrowings has produced rather a mixed effect on the Stock Exchange. Gilt-edged stocks are depressed all round in view of the probability of the early issue of a number of new loans, which will divert investment funds from existing channels. Industrial shares are showing firmness. The activity is based on the expectation that foreign and Dominion borrowers will spend a considerable portion of their loans in this country. This hope, which ought to be realised if such an authority as the Federation of British Industries may bo believed, has caused a general improvement in what is known as heavy industrial shares, like iron, coal and steel. The improvement has spread to other industrial shares. It is announced that all of the new gold Coast loan of £4,500,000, except what is required to pay local labour, will be spent in this country, but even this satisfactory feature has not secured the loan an enthusiastic welcome, for its price is regarded as being too high. Allowing for redemp tion, the yield to the investor is only 4 7-8 per cent., and this does not compare favourably with similar existing securities. Conditions on Metal Markets, The metal markets have been somewhat adversely affected by the political crises in France and Germany, and the further depreciation in the franc has made French buyers extremely cautious. But business with the United States leaves nothing to be desired according to a report issued by a leading firm of metal brokers. It is generally admitted that the present activity of the stock market in New York reflects satisfactory conditions in most branches of trade, and in view of the great accumulation of wealth there is no reason why the activity should not bo maintained. Reports from the United States indicate that the consumptive demand is fully sufficient to deal with supplies of copper, lead and spelter. Only in legald to tin is a tone of scepticism expiessed, and this happens to be the only metal America does not produce and must portAmerican writers have for a long time I preached to consumers that the value of I tin is too high and susceptible to a sudi den break as has happened in the past. | Consumers, accordingly, have only fol- : lowed the advance in prices when they i have been forced to do so, and have ' limited their purchases to near requirements. | The intrinsic position of tin is perhaps ; stronger than that of any other metal, for the experience of the last year has taught that even the extraoidinai ily lucrative price obtained by the producers has not resulted in an increase in supplies sufficient to fill the need of the world's consumptive demand. Reports of the Bradford wool trade are distinctly encouraging. Demand has been So good "that the market has been cleared of several qualities, and topmakers are unable to accept new orders for delivery this year. One of the best features of the present situation is that machinery is better employed than at any time since the late slump. Improvement at Bradford. A Bradford correspondent writes:—"The manufacturers have booked very good orders both at home and for export during the last, month. Many now have sufficient work in hand to keep their looms employed until after the turn of the .year. The main difficulty is to induce buyers to pay prices in keeping with ieplacement costs. Undoubtedly many merchants are hoping for easier prices early next, year, but the general impression at the moment j is that values will be maintained until the end of 1925. "Conditions in the spinning section show a marked improvement and whereas a I few weeks ago spinners experienced great difficulty in keeping their machinery running, several are now working overtime in order to cope with urgent demands for delivery. General Outlook Hopeful. "A sudden spurt of activity also found the hosiery trade unprepared, and manufacturers are being pressed for the delivery of goods which might and ought to have been ordered long ago." Summarising the trade position, Barclay's Bank Review says:—"The progress made at Locarno should enable expenditure on armaments to be reduced and enable more attention to be devoted to financial and economic reconstruction and development. This would considerably facilitate trade expansion. "Favourable European harvests give a prospect of an abundant supply of foodstuffs, and many classes of raw material, at lower prices than in recent years. This should exert a beneficial influence in broadening demand, and the more active steps being taken by several countries to stabilise currencies should further assist. "It is true that a number of more important industries are still in an unsatisfactory position, but the greater activity in the engineering trade is evidence that, in some directions at least, progress is being achieved."

COTTON FIRM'S PROFITS.

A. and N.Z. LONDON. Nov. 7. Messrs. J. P. Coates, the sewing cotton manufactuers, made a profit of £3,655,699 in the past year. A dividend of 17J, per cent, for the year has been declared, and a sum of £1,143,000 has been carried forward.

EMPIRE-MADE GOODS.

SUGGESTED NEW GUARANTEE. LONDON. Oct. 27. Sir John Cockburn, formerly AgentGeneral for South Australia, says that the words " British made " do not provide an effective guarantee for Empire goods. The problem of Empire brands and trade marks could easily be solved, he says, by the registration by the Board of Trade of some handy word, such as " Berno," meaning British Empire mark of origin. After that, infringers of the mark could be prosecuted without further legislation.

SHIPPED TO ADDINGTON.

PROFITABLE CATTLE VENTURE,

[BY TELEGRAPH. OWN CORRESPONDENT. ] GISBORNE. Saturday. About a fortnight ago a local dealer shipped away 127 head of fat cattie to the Addington market, the majority being bullocks. Although they made a long boat trip they went on the market in fairly good condition and brought prices that must be regarded as very satisfactory. Nine cows sold t at from £ll 2s (id to £l7 17s 6d, and 117' steers brought from £l6 17s 6d to £22 7s 6d, the average price being £l9 2s 6d. The cost of sending cattle from Gisborno to Addington is about £4 a head. The net average of over £ls a head received is much above local prices.