FINANCE AND TRADE

Wanganui Chronicle, Volume LXXXIII, Issue 19767, 15 February 1927, Page 9

FINANCE AND TRADE

LONDON STOCK MARKET CHEERFUL TONE MAINTAINED ACTIVITY IN OIL SHARES. LONDON, Feb. 12. The inherent strength of tho Stock Exchange position has been shown during the past fortnight, for, despite several adverse factors, most sections have remained firm, with a cheerful tone. Even when the Chinese situation looked ugliest there was no sign of weakness, and now developments in China seem favourable, as shown by Sir Austen Chamberlain’s reassuring statement, considerable firmness is apparent.

It might have been expected that the reduced dividends of three great railway companies would have caused a depression in Home rails. Tho result was exactly the reverse. Ever since the dividends of the three great railway companies were announced leading rail stocks have been in demand at advanced prices. Apparently operators are glad to know the worst about the past, and the nightmare about uncertainty has been removed. A feature this week has been the great activity in oil shares, in which enormous business developed. Even considerable profit-taking sales failed to check the advance of prices and with regard to the position of securi ties generally, they stand at tho highest level since the war.

The “Bankers’ Magazine,” in its monthly valuation of 365 representative securities, shows that they appreciated during tho four weeks ending January 19 by no less than £120,000,000.

Wool Industry in France. According to a report received by the Overseas Trade Department from its commercial counsellor in Paris, the French wool industry has completely recovered from the severe damage suffered in the war.

The report adds:—‘The industry has received a considerable accession of strength by the restoration of AlsaceLorraine. Several minor centres have undergone great development and in many places new wool working factories have sprung up. The last six years of prosperity have furthermore enabled manufacturers to lay firm foundations for their enterprises, write off considerable liabilities incurred for new construction and plant and form adequate reserves.

Dairy Produce Stocks Reduced. The butter position shows little change. There is only a limited demand for New Zealand, buyers apparently preferring Australian at about eight shillings a hundredweight less. A satisfactory feature of the trade is tho steady demand for stored and lower grade butters, which has resulted in a great reduction of the heavy stocks which filled the cold stores at the commencement of the season. Arrivals from overseas arc beginning to decline, imports in January being 475,741 cwt., compared with 672,651 for the previous January, so there docs not seem much likelihood of any relapse in values for some time, especially as the Continental markets are very firm. Duty on Wines and Spirits. The unfairness to Australia of the proposed restriction on the clearances of wine, even in the amended form, is illustrated by official statistics of clearances in January, which amounted to 161,778 gallons, compared with 87,976 for January, 1926. This great increase is undoubtedly partly due to the high price of spirits, and therefore it is interesting to note that Scottish distillers are confidently anticipating a reduction in duty in the forthcoming Budget. It is said that they expect the duty to be reduced from 72s 6d to 50s per proof gallon. This would enable the retail price of whisky to be reduced by about half a crown a bottle from the present retail price 12s 6d. Such, a reduction would probably cause a material increase in consumption and tho distillers’ view is that the increase will result in a greater yield to th© revenue than at present. It remains to be seen whether the Chancellor of the Exchequer (Mr Winston Churchill) accepts this view.