TRADE AND FINANCE

Otago Daily Times, Issue 20190, 30 August 1927, Page 9

TRADE AND FINANCE

INDUSTRIAL SHARES ACTIVE. BOOM IN ARTIFICIAL SILKS. BUTTER POSITION SOUND. (Press Association—By Telegraph—Copyright.) LONDON, August 27. Activity in industrial shares has been a feature of the Stock Exchange throughout August, and, instead of the stagnation which usually marks this holiday h, there has been considerable live! in almost all departments of the miser .neons market, with prices higher all round. One of the most active sections h- ’ en artificial si.k shares, which have beer experiencing what can almost be described as a boom, and this received fresh impetus yesterday, when it was announced that Courtaulds, Ltd., which has a capital of £20,000,000, had decided to exercise an option to work the Lilicnfeld process for manufacturing artificial silks. This is taken as an indication of further increase in the production of arUfici silks, which has already begun to assum- important dimensions. The development of this industry will be watched with interest, in view of the extent to which artificial silk is, coming into competition with wool. _ , Commenting on Australia a New York loan, the Statist says: “The ensuing Exchange operations should prove a welcome source of strength for sterling during the difficult months lying ahead. Evidently borrowing in New York is to become a permanent feature of Australian finance. This development should b -nely welcomed.” , . Discussing the , wool outlook, tne Economist’s Bradford correspondent says; “ Many close observers of trad conditions predict firm to hardening ices during the next three months, but ydo not appear to be too sure as to what will nappen later. However, there is general confidence in the immediate future of values. Topmakers are adopting a very fl- attitude in the discussion of nev, business. All qualities of tops are well ahead of late rates, but it is difficult to induce spinners to pay more money except for small lots that are urgently required. Anoter wool expert writes: Ihe maintenance of prices of Australian wool in the near future appears fairly well assured. There does not seem Mbe quite the same optimistic tone in France, but all the reports froi Germany are to the effect that the machinery ‘ well employed. The only immediate mdic’tion in the Home trade of anything in the way of an advance in raw material values is the smallness of the stocks. The machinery consumption might be very much better. The butter position appears very sound, and the opinion generally held is that prices will harden. At present there is not much activity in colonial but _ but the undertone* is strong, as there is not much Australian butter avail bla here, and the stored stocks of New Zealand and other sorts are moderate. Additional strength is given to the position by the receipt of cables stating that larca Jhipments from Australia will not be made till late in October or November. As the Continental stocks are being greatly reduced, largely through German buying, and Argentine supplies arc restricted owing to drought, there may be a shortage of butter before the new Australian arrives. , The dried fruit trade has been showing an improvement, and stocks of Australian currants (Lexias) are practically cleared. Sultanas are also meeting with better demand. especially for the- cheaper grades. This is satisfactory, as stocks of this sort are plentiful. : ~, . Oranges have declined. materially in value this week owing to abnormal supplies from South Africa. Further heavy supplies are expected shortly, and prices are likely to go lower, so perhaps it is as well that prospective arrivals of Australian oranges only amount to a few hundred boxes. —A. and N.Z. Cable.