BRITISH TRADE REVIEW.

Timaru Herald, Volume CXXIII, 16 March 1926, Page 7

BRITISH TRADE REVIEW.

Stock Exchange Firm. PANICKY FALL IN NEW YORK. By Cable: —Press Association—Copyright. Australian and N.Z. Cable Association. LONDON, March 14. The Stock Exchange has been , putting up a- bravo light, and a winning me against a combination of adverse influences, which might well have caused a serious slump in values. There lias neeu a panicky, fall on the New York Exchange caused by the political crisis m France, with consequently a tall in the franc, fears of an engineering lockout in England, the uncertainty auout the coal report, and the threatened deadlock at Geneva. The cumulative effect of ail these has failed to do more than restrict business, and the general tendency, of prices on the Stock Exchange has been hrm, with the exception of Home railway stocks, and oils. The recovery of the price of raw rubber had a corresponding effect on shares. A feature of the Stock Exchange is the success attending new capital issues of four industrials, which have been subscribed this week. Two new loans under tlie Trade Facilities Act have been underwritten, £2,000,000 for tho Dorman Long Company for the development of their coal mines in Kent and £2,750,000 for-the Blue Star Line for tho construction of eight new steamers. Both those issues are at 5 per cent., and at par, and as they are guaranteed by the Government their full subscription is -probable. Other issues are talked about, and a Brazilian loan of £2,500,000 7 per cents.', at £95 is coming next week. Meanwhile nothing is heard of the New South Wales issue. Tlie prevailing opinion in financial circles is that it is being held up because the Premier wants a higher price than the Stock Exchange is willing to give. Outlook for Wool. Wool traders appear well satisfied with the course of the London wool sales, as indicating confidence in the present level of values, but it- is pointed out that this month is a, critical one, as 500,000 bales will be offered in London and Australia in March, which is a huge quantity to lift under present conditions. “The Economist’s” Bradford corves, pondent takes a hopeful view, and says unless something quite unforseen happens there should be a steady expansion of business. For months past manufacturers and spinners have been working on hand to mouth lines, in tho belief that values would not hold. There is now a disposition to accept the current level as a sound basis of legitimate trade, and to look further ahead. . * -> Wine Trade. According to trade newspapers, Australia’s wine propaganda is already bearing fruit, and since the advertisement first- appeared in the “Daily Telegraph” on March 3, there has been a continuous stream of' inquiries regarding the various types of wines, but even before this the demand was most satisfactory, and the Board ot Trade returns for February show the Home consumption of Australia’s wines for the first two months of 1926 amounted to 191,000 gallons, compared with 94,000 gallons for the corresponding period oi lust year, and 128,000 gallons in 1925. This increase is particularly gratifying, as the total Home consumption of all classes of wines for these two months was 33,000 gallons less than in 1924. New Zealand Honey. Another Dominion product which is benefiting from publicity is New Zealand honey. Not only is this meeting with a steadily growing demand in Great Britain, but Germany is now taking considerable quantities, which are being offered in 260 shops throughout the country. Produce Market. The butter trade appears at last to show signs of emerging from the depression which existed so long, and quite a good trade is being done this week, Retailers are apparently getting to the end of their stored boxes, and the approach of Easter has also stimulated sales. Another source of demand has been Canada, wiiich has taken 40,000 boxes of Australian butter off this market. Against this improved demand must be set the fact that there are large stocks stored here, and the European production or butter is likely to increase, steadily.