EXPANSION OF BUSINESS.

Poverty Bay Herald, Volume LI, Issue 16869, 26 October 1925, Page 7

EXPANSION OF BUSINESS.

PUBLIC CONFIDENCE STRENGTHENED. ; ’ ' NOTES ON BRITISH TRADE.::.' DAIRY PRODUCE OUTLOOK. Elec. Tel. Corjright-United Prew A«m4 Australian and N.Z. Cable Association) (Received October 26,(10 a.irj.)U 7-' LONDON, Octh 24. There has been a general expansion of. business on the Stock for though the boom in rubber has subsided, business in many departments-is active. The happy issue of the Eocarno negotiations served to strengthen public confidence in the general;,outlook, and improved reports pnAhpVcondition of several staple industries hav r e ofiused a demand for commercial; and industrial securities.

Rumors of impending heavy withr. drawals of gold for New York, and the consequent possibility of an advance in the bank rate, caused some disturbance in gilt-edgeds, but thc. iuarket'rocovered when it was learnt that'. tho exports wereYinder two millions, which is about 1 one-third of the amount anticipated, , add the Newt, York : .exchange reacted favorably,, The impression is now growing that; a higher bank rate may be unnecessary this year. * ' ' v ; v Cf

Sir John Hunter’s pessimistic ./.rff marks about the country’s’ trade kre dealt with in the West minster', Bank Review, which says: ‘ ‘ The piettiro $s •a whole bs painted much too; blackly. If Sir John Hunter had been, equally familiar with the conditions'in ■disr tricts like Coventry, as he is ..with North-gast Eh glatul,. hisJqiit%lc .w.pi\|rj : certainly have been modified.”

The Review points out that the lilt-’ est, annual analysis of nearly fifteen hundred British limited’” companies shows that on the average the..profits increased during last year,; and recent calculations place the . volume, of British production during ’ 1924 So per cent, of that Of 3020, compared with SO per. cent, in 1921, and 95 per cent, in 1923. , . The Review proceeds to make a suggestion that Britain.may. have to attack the problem of . foreign competi-. iion in trade by making a fresh 'advance in tho direction of industrial specialisation. ‘ ‘ That is, wo may have to devote our energies less' to the cruder industries, which foreign countries can carry on successfully, locally with their own resources, Jto the finished processes in which our position is unchallenged.”' The writer adds: “The' process of transition may be painful in somp respects, but. wc shall bo advancing..a stage further along the;, path:, Vto economic, evolution.”

Dullness reigns’i n the butter marked. Business almost is negligible, butTUis unlikely this condition of affairs will continue long. Holders, at any fate, show no alarm, and are not pressing sales, for with the strike still hohllng up shipments from Australia and New Zealand supplies on spot arc getting small, and tho general opinion is, that soon there will not be enough best butter for consumptive requirements. Much, of course, depends on whether consumers will continue ,to. .pay, the present high retail prices or turn to margarine, the makers of which are assiduously advertising their "best brands :is substitutes for dear butter..

An outstanding foature of tho metal market is the firmness of tin. According to one of the leading, brokers,'cau:. ditions making for higher prices spem to gather strength. .The.high’’premiums commanded by .Straits and Banku tin in tho East havo induced consumers to turn attention to English refined tin, causing large -withdrawals from- Eng*lish warehouses and a diminution of the already limited quantity on warrant. Cofisidcring the daily volume of transactions on, London, the av'allabTo j f stock of standard tin is inadequate, to the needs of tho market, and; th'e .contango on forward tin has been re- , placed by ” backward at ion. ’LI. .ftL’• v ,| The competition of Australian winoß, continues to perturb the wine growers | of Burgundy and Dijon. Tho Chamber of Commerce purposes to take 3 steps to counteract it. The ■ Chamber 4 objects to the. use of tho words-Bur- / gundy and Chablis in describing. Aus- , . trnlian wines, which it • declares ; ;i{? ■ harmful to the export trade in wines from Burgundy, and it is requesting the Minister of Commerce and Foreign Affairs to approach the British Gov-. : ernment with a view to ending what the Chamber calls disloyal competition.