TRADE AND FINANCE

New Zealand Times, Volume XLVI, Issue 10687, 6 September 1920, Page 6

TRADE AND FINANCE

UNCERTAIN OUTLOOK WOOL PRICES AND SHIPPING FREIGHTS. By Telegraph—Press Assn. —Copyright Australian and N.Z. Cable Association. (Received September 6, 12.10 a.m.) LONDON, September 4. A feature of the money market during the past fortnight has been tho Scarcity, which «as undiminished after tho turn of the month. This was much as expected. Though the Government' atone'disbursed twenty millions in dividends, the outlook, it is considered, will remain uncertain in view of the torthconiing autumnal demands. Tho lalk of a higher bank rate and the rekew'ud danger of coal and other indua- ■ Irial troubles overshadows all the markets. Tho Stock Exchange is quiet. Industrial securities were principally affected, but the influence extends also to many gilt-edged securities. Tho comparative steadiness of tho exchange during tho past week, after tl»e fluctuations of the sterling in Franco tho previous week, its attributed mainly to tho belief that onangoments have been completed to redeem Franco’s American loan, though the autumn demand for dollars is likely to b© harmful. It is Understood tho effect will bo largely discounted .by tho forward buying of dollars. Tho wool trade regards the improved tone and enhanced values at tho recent auctions as an indication that the downward tendency has been arrested, a leading, factor being the increased American and Continental buying. ■Moreover, Home spinners ■ and manufacturers need further supplies after the cautious policy pursued for several months. The trade considers that while caution is stid needed, tho latest developmentb prove that the earlier pessimism was unjustified. :The better auctions are likely .to react on the wool trade generally. At the same time. Well-informed circles, do not consider ■that tho true basis of values has yet been reached, as supplies must con tinue awhile to be an uncertain factor. Much depends on the rate at which Australian and New Zealand supplies pro marketed and transported. Tho industrial outlook continues to

restrict dealings in metals. Copper i possesses a firm undertone, but tin is somewhat depressed. The industrial uncertainty is inclining speculators and other holdera to realise little fresh business. There ia fair business in lead. The Continent is offering freely. There is a poor market for spelter. Freights are firmer under the influence of the coal freights from America. The British coal strike would be an adverse factor, but the market believes that the grain and cotton movement in the autumn will more * than counteract the some, justifying the hope that freights will continue to advance. Shipping circles await with interest the prices realised at Lord Inchcapo’s forthcoming sale dtf enemy ton T Pago on behalf of the Government, as the supply of tonnage for sale far exceeds the demand.-