TRADE AND FINANCE.

Taranaki Daily News, 12 May 1925, Page 7

TRADE AND FINANCE.

CONDITIONS IN BRITAIN. NEW ZEALAND LOAN. THE WOOL MARKET, By Telegraph.—-Press Assn.—Copyright. London, May 9. "Business on the Stock Exchange since the introduction of the Budget hßs been a disappointment. Investment securities have failed to respond to the reduction in the income-tax, the effects of which appear to have been more than counterbalanced by fears that a period of dear money will be experienced as the result of the return to the gold standard. The gilt-edged market has been depressed by the impending new issues, the first of which is New Zealand’s seven million. This has been well received, as the terms are regarded as favourable. The instalments are extended till August and 13s interest is payable on September 1. As the loan is repayable in 1945, the yield, allowing for redemption, is a shade under 99s per cent.

The only bright spot on the Stock Exchange has been the rubber shares market, which closed very strong on a spectacular advance of raw material. Few shares were available to meet the very keen demand, and a good all-round advance is recorded. THE WOOL SLUMP. The Economist's wool expert, commenting on the London sales, says: “The results must be regarded as quite equal to what anyone could reasonably expect. So far as merinos are concerned, they are better than the conditions at Bradford and Roubaix would have indicated. Taking all things into consideration, the competition for raw material exceeds general expectations, and it only needs a return of confidence to see a general movement accompanied by more machinery running.

“The one outstanding lesson of the slump is that the world's purse is too limited to support high values for clothing. Wool is not the scarce article that it has been made out to be, and we are satisfied that with values reasonable a good textile trade can still be done. We believe the current London sales will point in that direction and hope they will contribute something towards the stabilisation of values and a real awakening of the entire industry.” DRIED FRUIT MARKET. The new arrivals of the dried Australian sultanas are meeting with general approval, but so tar only a few parcels have been sold at 68s, 70s to 755, according to quality, as tlie Australian Dried Fruit Control Board instructed consignees not to offer them at present. Brokers who handled large quantities of Australian dried fruits attribute this action to the desire not to sell before the duties are removed on July 1, and express strong views regarding the unwisdom of this course. They point out that by July I some 3000 tons of fruit arc due to arrive from Australia, and the present stocks of old fruit in London amount to 378 tons currants, 807 tons raisins, and 1698 tons sultanas. In view of these large supplies, brokers consider the wisest plan is to sell the fruit as quickly as possible without waiting for the removal of the duty, but the brokers are apparently unaware that strong representations are being made to the Chancellor of the Exchequer to remove the duties earlier than July 1, and if these are successful and free imports are allowed, say on June 6, the position would be much better. The first Australian currants have arrived. These are described as far below the standard, being very poor and bad in colour. THE WINE TRADE. The Morning Post’s suggestion regarding the Anglo-Portuguese wine treaty does not find favour in the wine trade* whose leading newspaper says that, without wishing any harm to British Empire interests, the proposal seems to us both unpractical and undesirable. It would be bad for all parties concerned, especially the consumers, if the definition attached to port by the treaties was fundamentally altered. That definition should be allowed to stand, but the abuse to which it is subjected by the increasing importation of lower strength wines should be stopped and the alcoholic strength of port clearly established. South African port can only be a type of port. It would be just as reasonable to allow margarine to be sold as butter.