MONEY AND MARKETS

Otago Daily Times, Issue 20522, 25 September 1928, Page 9

MONEY AND MARKETS

GILT-EDGED STOCKS QUIET. GRAMOPHONE SHARES ACTIVE. WOOL POSITION WEAKENING. (United Press Association.) (By Electric Telegraph—Copyright.) LONDON, September 22. The stock markets for the last week have been showing a somewhat hesitating tendency. Gilt-edged stocks were in a quiet and subdued mood, being under the inrluence of the uncertain monetary situation. The market is hardly likely to improve while sterling exchange continues to fluctuate around the point at which the gold shipments to the United States are profitable; but though the giltedged market is dull, prices show no serious downward movement, and a satis factory feature is that colonial issues are steady Industrial stocks have been one section in which activity has been shown, and there is considerable speculative business, particularly in gramophone shares. The monthly review of the Westminster Dank contains a well-balanced article on the trade outlook, which records both the favourable and unfavourable features of the situation. The writer says the setback to certain branches of national activity during the past few months has been of significant dimensions, and the outlook for the coming autumn and winter is accordingly less favourable than might have been hoped for six months ago. It would be idle to overlook the presence of retrogressive economic tendencies or to deny their share in bringing about the present situation. On the other hand, the review takes a somewhat hopeful view of the situation from the fact that the possibilities of nationalisation have been,receiving more practical consideration in a wide range of industries than at any time since the war. Another reason for inducing the writer to take a more hopeful outlook is the fact that the world’s harvest of foodstuffs and raw materials is on a bountiful scale, and a good feature at Home is the tendency towards a little more co-operation between capital and labour in seeking a solution of some of our economic problems. The weekly report of the London Iron and Steel Exchange sounds a pleasantly optimistic note. It says: “The market is .developing a distinctly healthy tone. The autumn demand has not yet fully matured, but the prospects are decidedly good so far as can be judged by the increasing volume of inquiry which has been circulated both on home and export account. Though business in British works has been largely of a hand-to-mouth nature, there are signs that the consumers are inclined to place forward contracts. The overseas markets appear to be waking up, so the position is brighter than it has been for some time.”

Commenting on the wool position, the Economist’s Bradford correspondent says: “ There are distinct signs of weakening in the wool position, and there seems to he some project of wool being obtainable in the nearuuture on a basis more in keeping with\ what users can afford to pay. Confidence has been shaken, and business in tops and yarns will be erratic until a new level of values has been established. The danger is that the decline may be carried too far, just as the rise was overdone, and in view of the uncertainty both spinners and manufacturers will certainly operate with extreme caution during the next few weeks.” The new"season’s Australian frozen rabbits are beginning to arrive, and the reports on the first shipment are very favourable. At present the demand Is slow owing to a continuation of summer weather, but as soon as we have a cold spell inquiry will certainly be good, so the trade newspapers are advising retailers to buy now and put the goods into cold store. ‘The present prices are from 33s to 38s per case of 24 rabbits.—Australian Press Association.