MONEY AND MARKETS

Otago Daily Times, Issue 20793, 12 August 1929, Page 9

MONEY AND MARKETS

UNCERTAINTY ON EXCHANGE. APPLE SEASON ALMOST OVER. CRAZE FOR ARTIFICIAL SILK. (United Press Association.) (By Eiectrlo Telegrapto—Copyright.) LONDON, August 10. (Received August 11, at 5.5 p.m.) The Stock Exchange resumed business after Bank Holiday'in a cheerful frame of mind, thanks chiefly to the improved conditions of the money market following the rise of the Paris Exchange above the gold export point and the consequent cessation of the drain of gold from the Bank of England. With the fear of an advance in the bank rate thus allayed there was a .general improvement in prices, gilt edgeds naturally leading the way, but a rise in the New York Federal Reserve Bank rate came like a bolt from the blue, and rapidly transformed the cheerful position into one of depression and anxiety. There was general apprehension that an early rise in our bank rate must follow, consequently business yesterday was almost at a standstill, with dealers marking down prices as a precaution. Fortunately there was no pressure to sell, and a measure of confidence was restored in the afternoon by the Bank of England's statement .that the rise in the New York bank rate did not necessarily connote an advance in London, As a consequence most of the markets rallied, and a somewhat better .feeling was noticeable at the close, hut uncertainty still prevails regarding the future, although it is generally believed that the Bank of England will do its utmost to avoid an increase in the hunk rate as an advance would seriously interfere with the country’s trade. Next week will see the finish of of the Austalian and New Zealand apple season with the marketing of the Liverpool portion of the Huntingdon’s cargo. The market is still good for Dominion apples as supplies from other sources arc restricted, only moderate quantities having yet arrived from America and the Continent. The fact that such good prices are being realised so late in the year is of course largely attributable to the supplies from Australia and New Zealand this season totalling only 1,443,000 boxes, compared with 3,950,000 last year, and 1,710,000 in 1927. According to the report of the Food Council, retail butchers have been doing well lately. ‘‘ The results of our inquiry,” states the report, “ are that the financial position of the retail butchers has not only improved since the war but has improved out of proportion to tile increase in the general, cost of living. Even the reduced profits of 1927-28 represented an estimated return on capital of nearly 23 per cent.” The report attributes the progressive increase in the incomes of retail butchers for the three years 1025 to 1027 to the fact that there was a falling wholesale market which enabled them to obtain an unusual rate of profit, as they adjusted retail prices to wholesale only after considerable delay. , wiiter in the Yorkshire Rost makes interesting remarks .regarding the increasing competition of artificial fibres with wool. After quoting the statement of Mr Tout, the president of the Australian' Graziers’ Association, that he does not think there is any uangei of Australian losing the proud position of having the greatest wool markets of the world, the writer savs: “ After reading the technical paper dealing with the future of artificial fibres, it is_ felt that Australia’s pride in superiority in the woo) markets is in serious danger of being undermined by a rapid advance in the manufacture of artificial fibre. It is a disturbing fact foi Australia that the world production of ai tincial silk alone is now reputed to be equal to the clean scoured content of the whole Australian clip.” Referring to the statement in Dainty’s Review of the effect of the craze for artificial silk, which it stated will probably last for some time, but sooner or later a revulsion of fooling will come, the Yorkshire Post says that those in the artificial silk world do not view the question from this angle. Scientists have determined to produce artificial Jibre which in appearance, durability, heat retaining, and other properties shall rival wool, with the added advantages of a greater range of colour and more fascinating shades than wool has yet yielded. It will be a pity if iu the contest for superiority of the world’s markets the importance of the advance of artificial fibres is underestimated by wool producers anti wool users,—Austialian Press Association.