COMMERCIAL.

New Zealand Herald, Volume LXIII, Issue 19216, 4 January 1926, Page 5

COMMERCIAL.

IjONDON TRADE REVIEW. PROSPECTS FOR NEW YEAR. A TONE OF CONFIDENCE. ft FIRMNESS OF SECURITIES. Australian and N.Z. Cable Association. (lUxid. 5.5 p.m.) LONDON, Jan. 2. The Stock Exchange closed tho old year or: a cheerful note, there being a quietly optimistic tone, in almost all markets. Gilt-edged securities showed a firmness all round. Foreign bonds were mainly steady and British railway shares wero well supported owing to the increased traffic receipts. Shares in industrial concerns have been quiet generally, but thore has been considerable activity in oil shares, this apparently being due to a recognition of the fact that the outlook of tho oil industry has been steadily improving for some time. There is a general impression that a spirit of confidence will be apparent v.'hen tho markets reopen on Monday. As one of the financial newspapers says: " On all hands signs are not lacking that a .vity may be expected throughout tho Stock Exchange, for not since 191.4 havo tho conditions been so favourable to tho investor." Another financial writer says: " The dangor of a further rise in. the bank rate is tegarded as having passed, and the wcok-cnd rise hi the ruto ox sterling exchange on New York is certainly very encouraging. Hence gilt-edged stocks will probably be fairly maintained until the long awaited trade rervival shows signs of development." Details of the capital issues of new money in London during 1925 show an increase of nearly £23,000,000 over 1924, the total amount reaching £232,514,500. This increase is interesting when it is recalled that the embargo on foreign borrowing meant that foreign Governments floated no loans here in 1925, 'whereas they borrowed £40,000,000 in 1924. Tho Dominion Government loans also showed a decline of nearly £20,000,000 compared with 1924. Tho increase in the total amount was caused by the British Government having raised nearly £30,000,000 more last year than rn tho previous' 1 year, and by tho number of industrial commercial issues, which amounted to £109,000,000, as compared with £71,000,000 in 1924. Outlook for 1 the Wool Trade, The prospects of the wool trado are discussed in tho annual reviews. A leading firm of selling brokers, Messrs. Charles Baumo and Co., writes; "In Franco tho uncertainty regarding tho i'uture course of exchange is causing traders to adopt a w'aiting policy. In Germany the wool industry has not sufficient capital to finance its purchases and is finding a difficulty in raising credits, but it undoubtedly requires considerable supplies of raw material. " Taking all circumstances into consideration it seems probable that tho current prices will be maintained in tho early part of the year, though the irregularity of the Continental demand may cause fluctuations, but later, if Franco and Germany aro enabled to resume operations on a large scale there should be a more stable market and some recovery in prices." i Artificial Silk and Cotton. Messrs. Schwartzo, Buchanan and Co. write: " The present fashion for women's wear materially reduces tho consumption of wool. We must also bear in mind the extraordinary expansion of tho production of artificial silk and the record cotton crop rn Ammca, as both these articles compsfie to a certain extent with ~wooL Fortunately tho present winter promises to be a cold one. This should stimulate a demand for heavy goods. " Taking everything into consideration wo incline to tho view that with wool on the present basis thero should not be much danger and thero should be a reasonable prospect of the maintenance of prices, possibly with minor fluctuations,but not of any material improvement in the near futuro unless there is a revival in general trade." Increase in the Fruit Trade. The " eat more fruit " slogan appears to be producing satisfactory results. At a recent meeting of tho Glasgow Retail Fruit Trade Association the chairman expressed the conviction that moro fruit was being distributed, not only by fruiterers, but also by grocers. Ho said that new fruit shops wero springing up in every district in Glasgow. Other speakers corroborated his remarks. The excellence of the Australian sultanas is referred to in tho review issued by a leading Liverpool • dried fruit firm, which congratulates the growers and expresses a hope that tho* satisfactory season in 1925 will spur them on to reach a yet higher state of perfection in the packing of the crops which last year showed a welcome improvement in the quality and grading.

THE PORT OF SYDNEY. OVERSEAS TRADE INCREASES. Tho rapid growth of oversea shipping trade with Sydney is disclosed in the annual report of the Sydney Harbour Trust for the year ended June 30 last. The report states that during the year there was a further recovery toward prewar figures in shipping trade with the port, and shipments of wheat from Sydney reached a record. The vessels that entered the port during the 12 months numbered 8092, representing a gross tonnage of 15,623,939. Tho vessels that entered the port were 425 less than in the previous yenr, but owing to the increase in the size of vessels trading to'the port the tonnage was 183,357 in excess of that of the previons year. The year's tonnage was only 3.2 per cent, below that of 1913-14, which is the record for Sydney. Goods imported during the year amounted to 4,437,878 tons, valued at £98,060,798, compa-ed with 4,455.153 tons, valued at £91,106,544 for the pre-, vious year. Exports of primary products overseas and to Interstate ports, exclusive of bunker coal, amounted to 1,507,870 tons, compared with 809.677 tons for the previous year, the increase being accounted for by heavier shipments of wheat, butter, frozen meat and fur skins. The value of oversea exports was £58,187,683, compared with £40.877,888 for the year ended June 30, 1524. Wheat exports reached tho record figure of 868.211 tons. At Glebe Island. 67 vessels loaded 350.609 tons of bulk wheat, while 233 vessels loaded 517,602 tons of ba?ged wheat at Pyrmont wharves. Some delav was occasioned in the loading of mixed cargoes of bulk and bagged wheat, owinn to vessels which had loaded bulk wheat at Glebe Island having to be removed later to Pyrmont to complete, but this is likely to be obviated in the near future by reason of increased rail, wharf, and shed accommodation at Glebo Island.