BRITAIN’S STABLE FINANCE.

Timaru Herald, Volume CXXIII, Issue 17692, 5 July 1927, Page 9

BRITAIN’S STABLE FINANCE.

Unshaken By Week’s Crisis WOOL AND BUTTER PROSPECTS. gv Cable—Press Association —Copyright. Australian and N.Z. Cable Association. LONDON, July 3. References hav© frequently been made of late to the inherent strength of the Stock Exchange position. If any proof of that strength were needed we had it this week, when the markets withstood the shock of the collapse ol a gambler on a colossal scale, witn no worse result than the failure ol one unimportant broker. As a writei in one of the financial newspapers says: “The Stock Exchange, after th© first feverish dealings in British controlled oilfields, took matters calmly. Buyers come forward for cheap stock, and the excitement subdued as quickly as it arose.” There is still an anxious time ahead, as heavy differences in connection with dealings in these shares must be met at the next settlement on July 14, but there is plenty of time to make arrangements. While th’s excitement spread to other speculative markets, it failed to disturb gilt edged®, which went on Uneven tenor of their way, meeting vitli improved inquiry.. London Money Market. As is often the case after a collapse in speculative stocks, there was renew ed activity in new Home corporation and colonial scrips, and the recent New South Wales and New Zealand* showed good advances. The prospects therefore, appear favourable for the issue of the ‘new Commonwealth Joan but there.is not yet any definite news about its appearance.

In this connection, it may be men tioned that about half a dozen foreign sterling loans have been recently floated here successfully, but as all of them yield well over G per cent., the success is haidly surprising. TJiere has been quite a flood of new issues on the market, and last week tire total offer, ed to tho public amounted to £6,177, 650, wJiilo a further £1,837,500 was offered by companies to their share holders.

Wool Outlook. As the date of the opening of the fourth series of wool sales comes nearer, anticipations of harder prices grow more prevalent-. The general opinion now seems to be that on Tues day we shall see values 5 per cent, above those ruling at the close of the May auctions. One wool expert writes- “There is comething approaching a squeeze in fine wool, and only the inadequacy oi Home trade manufacturing requirements prevented values advancing more than they have done since May. The prospects of any great increase in the consumption of merino wool in the West Riding ar© none too good, and users are unlikely to compete so readily as to cause an advance of more than 5 per cent. Values fqr fine wool have certainly appreciated to that extent during the interval,, but th© weight of business passing in fine tops and yarns does not justify the payment of much higher prices. A similar advance may be expected in crossbreds. The expanding call for crossbred wool ,tops and yarns on Continental account, has done a great deal to improve the prospects of this quality, but here again topinakers are very much dissatisfied with th© prices they are able to command for medium low qualities. The immediate outlook for th© sale of practically all classes of wool is good. Germany is expected to be a large buyer, and .other Continental buyers are expected to operate freely High Prices for Apples. Prices for Australian and New Zealand apples maintained a high level in all markets, especially at Hull, where the Continental demand raised values to exceptional figures. Liverpool and London buyers have also been paying what can only be regarded as wonderful prices for the time of the year, prices exceeding all records, except, of course, those of the control period, when the Governument fixed the minimum price at 19s per case. During th© next fortnight about 150,000 cases of Australians are due to arriv© at English ports. and the demand is still so good that the present 'prices will probably be maintained. Market Dull. The demand for Australian and New Zealand butters has been somewhat dull during th© last few weeks, and prices have eased a few shillings. This was to be expected as the Continental' output reached the highest point. The English supply was also very heavy,

Now thero are signs that tho Continental glut is diminishing and the English output is lessening, so better inquiry for colonials is becoming apparent.- and the market closes with a steady consumptive demand all ovei country, and as Australian and New Zealand shipments on the way are in small compass the prospects for the future seem hopeful.