LONDON STOCK EXCHANGE.

New Zealand Herald, Volume LXVI, Issue 20302, 9 July 1929, Page 7

LONDON STOCK EXCHANGE.

A PERIOD OF DULLNESS.

VARIED INFLUENCES AT WORK.

United Service. LONDON, July 7. Tho dullness of businoss on the London Slock Exchange is creating great con cern among' stockbrokers.

Tho position is difficult to clarify as the influences at work at present com prise a curious mixture of political fears, financial technicalities and mass reaction against last year's rampant gambling Nevertheless, (he public is inclined to speculate. The uncertainty about tho Government's intentions in regard to the safeguarding of industries is adversely affecting industrial stocks. In view of the likelihood of a renewal of the diplomatic relations between Britain and the Soviet it is interesting to observe that American capital lately has been pouring into Russia in renewed volume. Whatever happens it is doubtful whethei British capitalists would be equally enthusiastic. PRODUCE IN LONDON. WOOL AND HEMP MARKETS. QUIET TONE PREVAILS. LnY TELEGRAPH. —OWN CORRESPONDENT. ] WELLINGTON. Monday. The Department of Agriculture has received tho following cablegram, dated July 6, from the High Commissioner for New Zealand, London: — Tallow.—There was only pooi 4 demand at auction. Present quotations for spot are:—Mutton: Fino, 41s to 41s 6d per cwt.; fair to. good, 38s to 40s; dark to dull, 35s 6d to 365. Beef: Sweet and/or mixed, 39s to 435; fair to good, 37s to 395; dark to dull, 35s to 365. Mixed: Fair to good, 36s 6d to 395; dark to dull, 35s to 35s 6d. Gut, etc.: 34s to 365. Hemp.—The Manila market is dull. "J" grade for shipment to be in July-Septem-ber is quoted at sellers, £37 ss. -The output from January 1 .to June 30 was 871,000 bales, against 702,000 for the same period last year. Stocks in Manila at the end of June totalled 208,000 bales, against 143,000; England, 10,315 bales, against 31,232 bales. Sisal: The market was quiet, closing easier. For shipment to bo in July-September Tanganyika No. 1 is quoted at sellers, £3B 15s; No. 2, £36 15s. * Tanganyika No. 1 afloat sold down to £3B 10s; No. 2, £36 10s. New Zealand: Tho market is quiet. Small busi ness has been done in higlipoints JunoAugust shipments at £33 15s; fair, £3O 10s. Value of common is £29. No. 2 tow, value £2l 10s. In No. 3 business has been done at £l7 10s. Wool. —Tho Bradford market is quiet. Fine crossbred tops are slow, the tendency being in buyers' favour, and less confidence is shown in medium crossbred at current rates. Low crossbred prepared sorts are firm. Preseht quotations for tops are: —64's warp, 3s 4d to 3s 4£d per lb.; average, 3s 3£d to 3s 4d; 56's, 2s to 2s 6d; 50's prepared, 2s Id to 2s l£d; 40's prepared, Is O^d. AUSTRALIAN BUTTER. THE POSITION ABROAD. Mr. E. J Newton, who for 22 years has been representative of tho Associated Agricultural Societies of Victoria, and has represented them in England for seven years, lately arrived ih Melbourne from England. With regard to the butter position in England, he said the outlook had altogether changed since tho 1927-28 season, when for some obscure reason thero was a general falhng-off in the quality of Australian butter. It caused dismay on both sides of tho world, as it meant a loss to Australia, and forced British traders to look to Argentina and Baltic ports for a large portion of British requirements. Mr. Newton said British traders regretted tho trouble as much as Australian producers. In tho meantime New Zealand had maintained a high standard, and held its position on the market. It was pleasing to note that an alteration in manufacturing methods during the 1928-29 season had resulted in the former standard of quality being practically restored, whereby Australia has regained its place on tho butter market ,1 INTERNATIONAL TRADE. SLOWER RATE OF INCREASE. According to the estimates of the Economic and Financial Section of the League of Nations, the aggregate value of international trade continued to incroase in 1928, but tho rate of advance was slower than in 1927. In that year the recorded value of trade increased by 4 per cent., while in 1928, according to preliminary information covering about 85 per cent, of the world total, tho corresponding rise amounted to some 3 per cent. The docrease in the general lovol of gold prices, if any, was probably small, and it may therefore be concluded that, although the actual quantity of goods exchanged internationally increased, the rate of growth was less than in the preceding year, when the increase in the quantum was estimated at 8 per cent. The rate of growth in Europe appoars to have lagged somewhat behind that achieved in North America and in the world as a whole. Indeed, the tendency which manifested itself in 1927, when European trade developed by not less than 13 per cent., seems to have been reversed. GRAMOPHONE BOOM. IMPOSSIBLE CLAIMS. Reviewing recent flotations in Britain of gramophone companies, the London Financial News says that 16 of these concerns went to the public for capital since tho beginning of last year, representing an aggregate nominal capital of £4,500,000. According to the prospectus estimates of 14 of these companies, the annual output on a full year's working was to be 120,000,000 records, to which should be added the capacity of the two concerns which gave no estimates. In only one instance, a company, whose profits have actually been in excess of prospectus estimates, has performance been comparable with promise. Other concerns are known to bo in difficulties, or to be unable, for one reason or another, to • manufacture on anything like the scale which their activities should have reached by now. In the majority of instances the records of tho new companies are not yet on the market to any considerable extent. The industry is highly competitive, and even if they wero in a position to make 120,000,000 odd records a year, it seems extremely doubtful, to say the least, whether there is a large enough public to absorb so considerable an output, in addition to that of the older companies. Comment is also made on the remarkable disparity of profit ratios exhibited in tho prospectus estimates. Thus, while one company anticipated a not annual profit of £50,000 on a capital of £300,000, another budgeted for £60,000 on only half that capital, though both these concerns based their calculations on tho same annual output, namely, 5,000,000. A third company estimated a profit of £57,890 on a capital of £IOO,OOO, this being on the basis of a yearly output of only 750,000 records.