BUSINESS DULL

Southland Times, Issue 20010, 26 October 1926, Page 7

BUSINESS DULL

THE STOCK EXCHANGE EFFECTS OF COAL STRIKE WOOL MARKET RESTRICTED (By Telegraph—Press Assn.—Copyright.) London, October 23. Although business on the Stock Exchange has not been active lately the tone in most departments is distinctly cheerful and despite the continued outflow of gold and the fall of New York exchange, which caused some fears that the bank rate may be raised, gilt-edged securities remain firm. The prolongation of the coal stoppage, which is now in its twenty-fifth week, might have been expected to depress industrial securities but the contrary is the case. Some favourite industrial stocks are higher than in the early part of the year and speculators act promptly on any bullish rumour. Oil shares have profited by satisfactory distributions by the Anglo-Persian Oil Company. In mining shares are firm on the high price of metal. WOOL DEMAND WEAK.

Business in all departments of the wool textile trade is on a restricted scale. One great Bradford firm has decided to run the machines only four days of the week on account “of the severity of Continental competition in the Home market and grave additional burdens imposed on the industry by . the coal strike.” According to a wellinformed Bradford correspondent, it is recognised it will be a very long time before the disastrous effects of the strike are overcome. The spending power of the public is being reduced and textiles are always among the first of the ordinary commodities of life to suffer from the drawing in of the purse-strings. The demand for cloths is limited to very small lots for immediate or early delivery. The correspondent continues: “A slight ease in wool values at the Australian sales has weakened the position of top-makers and all quotations are easier notwithstanding the fact that prices at Bradford are below replacement level, but even lower values do not stimulate demand, and it is obvious no buying movement of any magnitude will develop under existing Conditions.” SUCCESS OF AUSTRALIAN WINES. Commenting upon impending discussions at the Imperial Conference anent the use of port wine, the Trade Review states: “When Mr Bruce returns to Australia he will have to deal with the question of the export of bounty wines of the sweet port type. We hope he will extend the bounty period.” The Review adds: “Tliese wines had a remarkable success in Britain since the Australian viticultural authorities drastically stopped the exportation of imperfect wines. If the bounty is extended five to seven years there is. no doubt that at the end of that period they will have consolidated the position to such an extent that, with modifications of the Australian excise duty on brandy required for their manufacture, there is a probability that the trade will find itself in a self-supporting position.” DAIRY BOARD’S ACTIVITIES. Opposition to the proposed methods of the New Zealand Dairy Produce Board by traders here is expressed in forcible letters to The Grocer newspaper by «the exPresident of the Wholesale Produce Merchants’ Association and President of the Retailers’ Association. The former says: "The quite deplorable position of the market for New Zealand butter is the direct result of those who are experts in the manufacture of butter taking to themselves the altogether independent business connected with marketing butter.” He attributes the heavy fall in values primarily to the large quantities of New Zealand butter held in cold storage on instruction of the makers who “do not seem to understand there is not and never will be the same demand for old butter as for fresh.” Commenting on the subject, The Grocer says: “Present business in New Zealand butter is in a very bad way. Buyers are not interested in butter which has been in cold store and lost flavour. The question may well be asked, do the New Zealand authorities, looking back on their policy, regard the results with equanimity? There are many members of the trade in the United Kingdom who endorse the correspondent’s suggestion that the control scheme is an intolerable interference with the laws of supply and demand as far as England is concerned and the dictation of prices and restrictions on methods of selling will surely bring the market level for New Zealand produce lower than would be the case if there were no interference.”—A. and N.Z.