BRITISH INDUSTRIES

New Zealand Times, Volume LIII, Issue 12526, 16 August 1926, Page 9

BRITISH INDUSTRIES

AWAITING END OF COAL STRIKE STOCK EXCHANGE DEPRESSED UNDERTONE HOPEFUL By Telegraph.—Press Assn.—Copyright. Australian and N.Z. Cable Association. (Received August 15, 11.5 p.m.) LONDON, August 14. Hopes of a reduction in the bank rate were stimulated by the recent influx of the gold tax of the Bank of England, but were extinguished yesterday by the action of the New York Federal Reserve Bank in- raising its re-discount rate to 4 per cent., and it seems that we shall have to go through the ’autumn wit htlie rate at 5 per cent. The effect of the New York advance on the Stock Exchange was to offset, to some extent, tho hopoful feeling regarding the coal situation, which is now regarded as nearing a favourable settlement. The immediate effect of that advance and of the consequent fall in the value of sterling was to produce a> dull tendency ror gilt-edgeds, which had previously been very firm. But the undertone remains good, and any satisfactory nows regarding a coal settlement will certainly bring about a material expansion of business. Already iron and steel shares are beginning to improve, and rubbers are tending upwards. DEMAND FOR WINE DROPS The Australian wine trade is feeling the effects of -the coal strike, according to a trade newspaper, which Faya: “The dealers say that since whisky became dear as the result of the heavy duty on coal the miners were among tno best customers for Empire but now the miners are feeling the pinch of the strike there is a marked decrease in the sales of the cheaper wines of the burgundy and port type. The merchants report a steady sale from bottled London stocks, but bulk orders are few and far between.” This statement is borne out by the Board of Trade returns, which show that the quantity in thousands of gallons entered for home consumption in July was 1090, compared with 1306 in June, Hie Australian quantities being 98 and 114= respectively. HIGHER WOOL VALUES UNLIKELY Regarding the wool outlook, the *‘Statist” says: “If wool had not bene wundly situated the. slump . in the franc and a coal strike lasting over three months would almost certainly have depressed values. Further, if wool can stand up against such serious drawbacks, it should have no difficulty in maintaining values when conditions become more normal. It would seem that the Australian pastoralists are longing to see higher values, hut in view of the European position this can hardly be expected. We contend there is no need for higher values. Wo very much doubt if the world’s textile trade can stand higher prices. We are convinced that the continuance of to-day’s values will lead to the free placing of orders for textilea.” . Discussing the revised programme ot the Australian sales, a Bradford correspondent writes: ‘lt will not cause dissatisfaction in the . [West Riding, but rather the policy wil Ibe welcomed from a purely business standpoint, quite apart from what the speculators may thmk of it. The placing of orders for wool textiles is not spread evenly ove rtho whole twelve months, but is (tone in bulk at particular seasons, and when*bonsumers place orders they like to cover their actual requirements for some time ahead. The average price for wool offered will not suffer by quicker liquidation, while the actual users- of the raw material will be able to cover on better terms, and to operate adversely against the purely speculative element.” AMERICA STILL BUYING SKINS Among Australian and New Zealand commodities whioh are feeling the effects of the unsatisfactory fipancaat conditions on the Continent are rabbit skins and opossum skins. According to one of the leading importing firms the values for both havo been maintained at a high level chiefly by the strong United States demand. Already three-quarters of the supplies of rabbit skins have been sold direct to the United States, and a very large proportion of opossum skins has also gone there. If the American demand is maintained the position should he all right, but should it cease or diminish to any great extent it is certain that the Continental users of skins will not fill the requirements at present values. There has been reoently a sligihtly improved. German demand for opossums, but as the supplies of them are expected to be three or four times greater than last year tit_ would need a much-improved Continental consumption to absor bthem. and in the present state of the finances of most of the European countries such an improvement hardly appears likely. In this position of affairs some of the principal fun and skin importers are advising their shippers to exercise caution.