FINANCIAL OUTLOOK.

Poverty Bay Herald, Volume XLIX, Issue 16021, 6 January 1923, Page 9

FINANCIAL OUTLOOK.

BETTER WOOL PRICES EXPECTED

SIR 11. BEAUCHAMP'S OPINIONS. WELLINGTON, Jan. 3.-In the course of an ipterview this evening on trade and financial prospects for the. New Year, reference was made by Sir Harold Beauchamp to a cabled statement from the Bankers''Magazine that the year 1922 witnessed, a remarkable rise, in the values of public securities at Home.

"That is the case," said Sir Harold Beauchamp. "There has been an enormous appreciation in all gilt-edged securities, but that i.s only natural in view of tlie fall in tho rate of interest. As tlie rate of interest falls tho value of all gilt-edged securities automatically rises. At the moment there is available for investment in these securities a large amount of money which would normally be open for investment in industrial concerns, but until economic conditions become more settled people naturally hesitate to embark any large amount of money in industrials.

"So far as this Dominion is concerned however, there is no doubt that the Prime Minister is quite right when he says that we have turned the corner. That is only to be expected, because of the excellent prices that we are now realising for all our products, and in the realisation of them wo are being substantially assisted by tho reduction in freights and in charges for handling and storing our produce in London. All these concessions are in favor of the producers. BETTER WOOL PRICES.

"Furthermore, I think it is only right to expect that there will bo a further hardening of crossbred wool owing to the high prico of cotton, which is still being affected by the boll weevil. This pest is , reducing, tho output of cotton very considerably, and owing to the high prices now ruling for cotton there is a corresponding increase in tho demand for woollen goods. 1 think that on the whole tho prospects for the New Year are very excellent, better than they have been since the armistice. The only fly in the ointment of courso is the menacing position of the Near East, but I am sanguine enough to believe- that common sense will prevail and that there will be no war.

"If we can steer clear of war, I am quite satisfied that there will be considerable improvement in business all round in 1923, and that in this the Dominion will get ite full share. It is. very encouraging to seo the altered attitude of the United States on the European situation. It looks as if America is going practically to take a hand in the settlement. I should say that the outlook generally is distinctly good."