COMMERCIAL

Poverty Bay Herald, Volume LIV, Issue 16705, 24 July 1928, Page 4

COMMERCIAL

TRADE IN BRITAIN SITUATION IN U.S. FIRM AUCTIONS IN DOMINIONS LONDON, June 7. Trading in raw wool .this week has been very much of a rcptition or' that of last, week, holders maintaining their firm attitude, and would-be buyers, both Continental and home trade, trying to obtain concessions. The turnover, as far as can be ascertained, is very moderate, but this does not indicate that machinery is at a standstill for supplies. In some sections of the manufacturing districts a slight improvement is noticeable in business, notably in the heavy woollen district, where orders ' for winter cloths are being placed more- freely. There is a continuance of orders from overseas for a mixed variety of goods, while in sections producing novelties and specialities machinery is .well occupied. It is in the worsted section .that competition from the Continent is so keenly felt, and there is considered to be little chance of any improvement happening until the Government does something in the way of keeping out the foreign imports. The situation in the United States continues quite firm, and as supplies shrink so the hands of dealers and holders are strengthened. Mill owners are inclined to buy more readily for fear of being left without supplies, although forward business in piece goods does not expand as much as they would like. Much is being made of the statistical position by advocates of firm wool prices, who point to the fact that stocks in the United States at the end of March, amounting to 261,749,000 lb., were the lowest since September, 1922. Stocks in dealers hands were also lower than in the December quarter, but those in the hands of manufacturers showed a slight increase. The report of the Utah Wool Growers' Asociation shows that the .wool crop in that State totalled 22,000,000 lb., compared with 18,000,000 lb last year. The British Wool Federation, at a meeting this week, discussed the growing custom of auctioning wool in Australia rather than consigning it to London, and also the selling of wool in the country by wool growers to dealers. The meeting was private, but it is believed some suggestions were made and discussed with, regard to the tendency to increase the number of selling centres, which is said to materially raise the cost of wool to the ultimate consumer. As far as can be ascertained no official action is likely to be taken beyond suggestions for the protection of buyers .who are sent to Australia and New Zealand at great expense. THE OVERDRAFT. RATE. The reduction of the overdraft rate in New Zealand, by associated banks to a minimum of 6j per cent, in place of the minimum of 7 per cent., which has been ruling for a. little over a year (says the Sydney Morning Herald), brings the New Zealand rate in line with the Australian rate. Six and a half per cent, has been the ruling rate in Australia for some years, with 5 per cent, for deposits for two years, 4£ per cent, for deposits for 12 months, and 4 per cent, for deposits for six months. For some months past the 4 per cent, rate has also ruled for deposits from three to six months. Most of the fixed deposits are .for two years. The policy of the Australian banks has been to keep deposit and overdraft rates steady. When money is tight the restriction upon overdraft is directly applied. There is little in the way of interest on call money, but there is at least one strong company, not a bank, which takes money at seven days' notice, and allows 3 per cent, per annum on it.