FINANCE AND TRADE

Southland Times, Issue 19654, 3 October 1922, Page 5

FINANCE AND TRADE

TRYING FORTNIGHT ON CHANGE UNFAVOURABLE PROSPECT FOR NEW ISSUES THE WOOL MARKET. (By Telegiaph.—Press Assn. —Copyright.) (Australian and N.Z. Cable Association). LONDON, September 30. The past fortnight has been a trying period on the Stock Exchange. There has been so much uncertainty regarding events in the Near East that business has been reduced to very small compass. With all sorts of rumours flying about it is only natural that people should be extremely cautious and prefer to keep their money on deposit rather than risk it even in gilt edged securities. But though business has been so restrained there has been no great depreciation in prices, for if buyers have been conspicuous by their absence there has been no influx of sellers. The whole position has been so uncertain that only the most hardened operators have dared to run the risk of opening fresh business, as the whole aspect of affairs might change at any moment. In this position of affairs prospects for new issues are far from favourable. It is understood several overseas States are anxious to raise loans but are likely to defer operations as long as they conveniently can. One bright spot in the Stock Exchange is the rubber share market. Following a slight improvement in the price of raw material there has been a steady absorption of rubber shares and prices for these have not shared the general weakness. but show an all-round appreciation. The foreign exchange market has been upset by the disquieting position in the Near East. German marks are suffering most, though in this case unfavourable re-« paration prospects and continued inflation were also contributory factors. The weakness of dollar exchange is attributable mainly to remittances to the United States in payment for exports, but another cause is fact that the British Government must pay America about £14,000,000 interest on the debt in October, and a further £12,000,000 must be met on November 1. The English markets are glutted with fruits of every description. Home crops of plums. j>ears and apples are very large, I and heavy supplies are arriving daily of Spanish grapes, while Switzerland, France (>erniaiiy and the Tyrol are all sending great quantities of apples, which in former years used to be consumed locally or exported to Russia. Now exchange between these countries and Britain is so favourable to them that- they are able to sell their fruit very cheap and still receive a handsome profit. Californian apples sold in Liverpool as low as 4/6 a case; American barrels 10/6 to 18/-; Nova Scotian Gravensteins, 10/- to 14/ - a barret Wool traders are following with unusual interest the opening of the Australian sales, and white importers are highly gratified with the satisfactory results users in Bradford are showing some alarm at the soaring prices, spinners bidding to the open market as much as possible in the hope that I they may get better terms later. Both i spinners and manufacturers assert that they I cannot sell their products at prices commensurate with the cost of tops.