PROMISING OUTLOOK

New Zealand Times, Volume LII, Issue 12041, 20 January 1925, Page 9

PROMISING OUTLOOK

TRADE CONDITIONS GOOD LONDON BANKS CONFIDENT OF IMMEDIATE FUTURE. WOOL TRADE UNSETTLED. Br Telegraph.—Press Assn.—Copyright. Australian and N.Z. Cable Association. LONDON, January 17. The little boom on the Stock Feechange which marked the opening of 1925 was not maintained long. Business this week has been very slack. Apparently' there was over-specula-tion in- some quarters, and. at the first sign of'a reaction, there was a rush of profit-taking, with the- natural result of weaker prices all round. Tea, rubber. mining, land, and other industrial shares all moved adversely, though not to a serious extent, and gilt-edged securities are fractionally lower, chiefly owing to the prospect of dearer money end new issue requirements in the near .future, but the position is not regarded as alarming. It is ejected that the effect of the satisfactory outcome of the Allies’ Conference will soon make itself felt, and that the markets will improve. TRADE OUTLOOK. The trade outlook generally appears to bo and the monthly circulars of the great hanks,' which are accepted as reliable and well informed, all indicate a fairly confident view of prospects. It is satisfactory to note that the balance sheets for 1924 of-the “Big Five” London joint-stock hanks show considerably-improved net profits. These five in 1924 showed aggregate net profits, of £10,948,752, compared with £9,745,224 in the previous year, and £9,938,909 in 1922. Thus tfiere was an increase last year of over 121 per cent, in profits, following a decline of nearly 2 per cent, in 1923. ■

NO CHANGE IN WOOL-, Although nobody in the wool trade appears to expect any great cbaijge 'in values at the sales opening in London on Tuesday, there are some who anticipate a quietness on -the part of American operators, that recent Australian auctions may be reflected, here, and that the high prices, prevailing last December will not be maintained all round. But, as only a small quantity of greasy crossbreds are available for this series, prices for those are hardiy likely to decline. Generally, the statistical - ■position of wool is regarded as ensuring that there will be no material fall in values. “NO TRUE PROSPERITY.”

An interesting expression of Bradford views was given by Mr Bertram. Parkinson, president of the.- British Wool Federation, in his inaugural address. He said that .the wool textile industry was struggling thipugh a very difficult period, and the New Year had not opened very brightly. Merinos and fine crossbreds were 20, to 25 per cent, and medium and low crossbreds 50 to 70 per cent, dearer than a year ago. There could he no true prosperity here with raw materials at such levels, and exchanges and tariffs everywhere against Britain. Net one conversant,with the wool tex-i tile industry would seriously., suggest I that prices were forced to these levels J,iy Bradford. CONTINENTAL ADVANTAGE. The real point, he said, was that-the demand for some time past had been in excess of the supply. That would continue until the supply overtook the deor prices, reached such a level that substitutes would be used increasingly, r and the demand for wool to that | extent reduced. ■ Britain’s Continental and Japanese.! competitors,. having the advantage, uf ; favourable exchanges, lower taxation, and low conversion costs, ooqld afford v-o pay better prices for wool than we conld in both Londfin, and primary markets, 'and could undersell us in both our Home and foreign markets with finished products. “No permanent prosperity at ■ this end of the trade is possible,” h* added. “until English .manufactured .goods can compete favourably with goods of other countries.” NO BUYERS FOR BUTTERi The butter market is stagnant, despite a heavy reduction in prices, buy- : ers maintaining a policy of abstention in; the hppe of forcing the market still lower. Meantime’ some retailers putting down prices. 1 Excellent butter is now obtainable ! at Is lOd a pound. It is hoped that this ; will stimulate consumption, but lower - prices, ate not yet general. A feature , of the market is the price of Australian butter which is only 4s a twt below New Zealand, and Australian is being well pushed, one large store sticking placards on its motor vans, “Butter Down; New South .Wales Is 8d lb'.”'" •; ■