BRITISH TRADE REVIEW

New Zealand Herald, Volume LXVII, Issue 20604, 1 July 1930, Page 7

BRITISH TRADE REVIEW

GILT-EDGED MARKET FIRM.

AUSTRALIAN STOCKS LOW.

NO GENERAL IMPROVEMENT

LONDON, Juno 28,

The Stock Exchange has safely passed tho last settlement of tho half-year, about which some apprehension was felt, as it was generally known that some firms were in a rather difficult position. Their stronger friends gave assistance, and the settlement was carried out without any outward incident.

Sinco then tho tone has improved j slightly, and during the last few days ! firmness has developed in the gilt-edged i market, and the prices of most British funds have risen, largely as the result of cheap money and the strength of the sterling exchange. In these conditions it is surprising that Australian Government stocks did not show improvement. Many of them at j present prices give exceptionally high | yields. . For instance, Commonwealth 5 j per cent., 1945-85, can be bought at | 06, giving a return of well over 5] per ; cent. Others afford equally good oppor- , tunities for investors, but confidence seems lacking, and unLil it is restored investors are likely to be few. High hopes are entertained that Sir Otto Niemeyer's visit to Australia may result in an improvement, but in tho meantime Australian stocks arc meeting only a small demand. Tho Economist's review of tho state of trado is again far from cheerful reading. It says: "No chcnge for tho better has taken place during I lie past month, and it cannot bo said that there arc any signs of improvement yet in sight. It must bo remembered that in previous moro fortunate years a setback in trado usually occurred about May, and lasted until tho end of the summer. Thus it could hardly have been expected that tho homo trado would have begun to emerge from its depression during the early summer months. " A rapid recovery is pretty clearly out of tho question, as the harm done by the depression is too deep to be overcome in a few weeks. But even a slight improvement, of no moro than the usual seasonal dimensions, might suffice (o raise tho spirits of the industrial world, and start the nation on tho road to a genuine recovery." BETTER WOOL OUTLOOK. INCREASE IN DEMAND. MR. B. TRIPP'S STATEMENT. LONDON, June 28. Mr. Bernard Tripp, New Zealand delegate to the- recent wool conference at Bradford, in an interview said he was highly gratified with the result, especially the British Wool Federation's agreement to co-operate in any form of advertising arranged between Australian and New Zealand growers. In view of tho increasing demand, Mr. Tripp emphasised the importance of the statement ma'j.a at tho conference, that all the wool now being grown is being sold, and that if by advertising they created a greater demand there would not be enough wool available to satisfy tho demand. It was stated that Bradford's main difficulty was that while the world's wool consumption was larger than it had over been, tho United Kingdom's consumption was less. Mr. Tripp said be was satisfied with tho statistical position of wool, which was very good. Stocks of raw wojl in Britain were smaller than for many years past.

EFFECT OF NEW FASHIONS

FIXE NATURAL FABRICS

[FIIOM OUR OWN CORRESPONDENT.] LONDON, May 10.

Mr. Bernard E. 11. Tripp, of .Timaru, who is now in England, has been interesting himself in the wool situation. lie has been in conversation with several of (ho hig Bradford buyers, and the impression ho lias received is that an improvement in prices will soon begin " Several leading men in the wool trade gave mo the impression," Mr. Tripp said, " that the swing in the other direction is starting after four years of falling prices. There arc no statistics available, but so far as can be gathered from the trade, stocks are small. No one has dared to buy other than from hand to mouth for a long time. " There is a decided change of fashion. People are getting tired of artificial silk, and England is beginning to turn out woollen material that is almost as fine as silk. If people can get this fine material in wool at a reasonable price they will prefer it to artificial fabrics. The longer dresses of the women will also have some effect' 011 the demand. " After the war the French put in new machinery to replaco their broken machinery. Bradford delayed, and it is only in the last year or (wo that new machinery lias been installed. Now they are turning out material as fine as that from Franco."

Mr. Tripp says he considers that a propaganda campaign in favour of wool is needed. The appeal must be made to the general public. Ho has taken some action to induce the authorities and tlioso interested (0 organise a Wool Week 011 the lines of the recent Cotton Week.

" There should be a proper system of advertising wool throughout the world." said Mr. Tripp. " This is badiv wanted. Wool is not advertised as it ought to be, and not as much as cotton. There is no doubt there is a tremendous opening in tho East for wool, especially in China, if only propaganda work were pushed in those parts. It is the crowd w& want to appeal to, especially from tho health point of view."

SALES AT SYDNEY

I'll ICES WELL MAINTAINED

(Received .Tunc 30, 10.15 p.m.) SYDNEY, June 30

At f lie Sydney wool sales to-day (he offerings comprised 10,032 bales, of which fiß'll weio sold. Also 748 bales were sold privately. The market was unchanged and prices were equal to tho closing rates of last week. Continental and Japanese buyers were (he most active. Greasy .Merino sold to 1-1 ,;d.

INDUSTRIES IN CANADA

ADDITIONS DURING 1929. Mr. \V. Phillies, manager of tho Industrial Department of tho Canadian National Railways, states that 393 new plants wero established on land adjacent to tho company's lines during 1929, the capital expenditure involved amounting to £14,820,000. In the same period 190 existing companies spent £6,700.000 in additions to their plants. There were also established on the lines in the Prairie provinces 90 granarif?. 1 lieso figures are considerably in excess of thgso for 1920.