TRADE AND FINANCE

Otago Daily Times, Issue 19584, 14 September 1925, Page 7

TRADE AND FINANCE

FORTNIGHTLY REVIEW. STOCK EXCHANGE BRIGHTER. fnw Association —B» Talegzsph—Os|Qii(U LONDON, September 12. (Received Sept. 13, at 5.5 tern-) " After a period of dullness almost ftppreaching depression the gilt-edged section, of the Stock Exchange developed a much brighter tendency yesterday, thanks chiefly to the abundant supply of. cheap money. Previously monetary conditions had been unfavourable, and there was _ a genera* though slight decline in all British Government stocks. Yesterday, however, _ there was a revival of public interest, with considerable buying, and prices showed a general recovery, following the lead of per cent, conversion loan, which advanced three-eighths. The tone is now distinctly hopeful, there being an impression teat with the dose of the holiday season business will improve. . Home Rails and industrials generally, have been adversely affected by the inflammatory speeches at the Trades Umon Congress| and also hv the Board returns, which reflect the existing industrial depression and tend to cheek any feeling of optimism regarding the Home trade outlook, but rubber shares continue firm, and the fortnightly settlement therein was a very heavy one. FOREIGN EXCHANGE MARKET. In tee foreign exchange market there have been considerable dealings in dollars at rather weaker prices owing to dearer money in New York, but the outstanding feature has been the sharp recovery of tee Italian lira following the Government a drastic measures to protect the lira from speculative influences bote at Home and abroad. THE COMING WOOL SALES. The opening of the wool sales next Tueeday is awaited with erven greater interest than usual in view of the large quantity to be offered. The general anticipation seems'to, be that prices will be firm. The Economist’s well-informed correspondent says: “The big weight to be catalogued frightened no one, and a very_ sound opening is expected. The Continent is undoubtedly in a buying mood, and it lopks as if France is going to force the pace. This is all to the good of Australian growers, but what really matters most to the Home trade is whether tee fabrics can, be sold on the basis of the cost of wool bought at to-day’s values. However, expectations favour a good demand for raw material. Last sales’ prices should he easily forthcoming. We certainly think that the manufacturing position is generally better than it was. It is Just a question whether the big weight of crossbreds can be lifted at top notch July prices, hut everything seems to indicate a very heavy demand for wool.” “ Another correspondent points out teat the Frehoh demand is mainly for military purposes in North Africa, and should the hopes of a vital blow being soon struck against the Riffs bo realised the financial position of France will cause a speedy cessation of wool buying for the army. Should France suddenly drop out of the market wool values will b© just as importantly influence!. THE NEW AUSTRALIAN TARIFF. Much apprehension will be expressed in the heavy woollen trade regarding the new Australian tariff. According to Dewsbury correspondents, the will seriously handicap trade in that district. It’s effects aro already being felt. The agent of an Australian importing firm telegraphed a local firm cancelling orders for two lota of cloth which were practically ready for delivery, and the local firm in question felt obliged to accept the cancellations in order not to prejudice future transactions. Losses have been also sustained by other firms owing to similar cancellations. butter prices. Butter prices continue to harden, and traders generally expect the firmness will be maintained for some time, as supplies will moderate until the new season's Australian and New Zealand begin to arrive, and at the moment strikes axe causing considerable doubt about when that will be. Supplies from other sources are rapidly diminishing, cold weather in Denmark having already reduced production. Garmany’R production is also declining steadily, and Germany is buying largely Dutch and Danish, though these purchases will probably cease at tee end of the month, when the German import duty of 11s a hundredweight comes into operation. A. and N.Z. Cable.