BRITAIN’S TRADE REVIEW.

Timaru Herald, Volume CXXIII, 22 December 1925, Page 9

BRITAIN’S TRADE REVIEW.

Financial Situation Obscure BRADFORD VIEW OF WOOL TRADE. By Cable —Press Association —Copyright Australian and N.Z. Cable Association. LONDON, December 19. The boom in rubber shares on the Stock Exchange has come to an end, as a resiut ot a sharp fall in the pr.ee of the raw commodity. Rubber Boom Ends. There was a brief revival of activity on a slight recovery m the price ot the raw article, but to-day’s further fall of plantation to 25d may be regarded as til© coup de grace to the boom for tliis year. Monetary Outlook. Other departments of the Stock Exchange, notably gilt edges, have been rather depressed owing to the monetary stringency, ami the fear that the Bank rate might be raised, but the markets improved considerably when Thursday passed without an advance in the rate, and monetary conditions became much easier. There has been a considerable number of new capital flotations, chiefty industrial, during the past fortnight, the total amounting to about £lO,600,000, of which £12,000,000 is ne*» money.

Several of these were rapidly oversubscribed, but several artificial silk companies met only a very poor response fiom the public.

Fluctuation of Franc. The French franc has provided thrills in the Foreign Exchange market this week, for after rising to over 135.00 as a result of the uncertain political and financial situation, it improved yesterday to 127.25 on the announcement of the textile industrialists’ loan scheme, and to-day it is still better, at 125.25. it remains to be seen whether this rapid appreciation is justified, for the industrialists’ scheme is only in the proposal stage, and further, there is the question whether the United States, where, presumably, it is intended to raise the money, would grant any new loan until France has settled her war debts. French Wine Vintage. A forecast of the French wine vintage prepared by the newspapers “Mon.teur Vinicole,” states that the yield will be considerably better than was anticipated in September, the improvement being attributed’ to the favourable weather experienced m many districts in October, which had a good effect on the vintage, and to some extent compensated I'cr the serious losses in other departments.

The total yield is now estimated at 63,034,000 pectolitres, a decrease ot 5.306,000 compared with 1924. The Algerian and Tunisian, yield bring the total to 75,134,000, _so apparently France will have sufficient, wine to meet all demands. Normal Trading in Wool.' Commenting on the wool position, Mr H. Dawson writes: —“Some hopeful features are beginning to emerge from the recent, .perplexing conditions. 'The tension of being caught short of supplies for immediate needs is relieved, and more wool is near at hand, and consequently users are watching carefully for the best opportunities for replenishing. All this indicates « return of more normal, safe trading, after a very disturbed period. There is a strong undercurrent of demand, and general anxiety to make early operations at a sale price, whicli appears in crossbreds to have been reached. The lower level of values is encouraging a better turnover, and more machinery is running. England is again becoming a more important factor in tlie "world’s markets; m short, the worst phases of the disastrous year just closing are .passing away, and after the most severe crisis of this generation, the wool trade emerges still virile and strong.’’ Butter Demand. The slight improvement in the de* mand for butter a week ngo proved only a flash in the pan, and the market relapsed into a state of apathy. This is largely due to the weakness of Danish, which lias slumped owing to the cessation of German demand. On Thursday the Copenhagen f.o.t). price was lowered to 170 s, equal to about 176 s landed hero, but it has since recovered about 10s. Retailers are now reducing thenprice, and with -the best butter at Is 10d and 2s per lb., it is hoped there may he an improvement m consumption, which has undoubtedly been checked seriously by the high retail prices.