LONDON MARKET REVIEW

Waikato Times, Volume 98, Issue 15319, 21 August 1923, Page 6

LONDON MARKET REVIEW

A DULL WEEK.

PBOSPBCTS FOR WOOL.

Australian and N.Z. Cable Assn. LONDON, August 18

This has been a very dull week on the Stock Exchange, Some brokers describe yesterday as the idlest day since the war, for although the Stock Exchange thoroughly approved of the Arm tone of the British Note to Prance, its publication and reception in France could only have an unsettling effect on markets, particularly foreign bonds. Toward the end of the week a less pessimistic tone became apparent, and most of the markets closed better, giltedged securities particularly sliowinc considerable firmness, with Colonials quite steady. Prospects of the wool sales, which open on September 4, are being eagerly discussed, and the general, expectation is that there will be spirited competition, for buyers have had no chance of operating since July 9, when the dock strike put an abrupt termination to the last series. France and Belgium are expected to be well represented, but Germany is an uncertain quantity, for though it is well known that the Germans have immense credits available here, and will probably be in the market again for large quantities, there is always the possibility of a general collapse in Germany. In the meantime British and foreign buyers are starting for the Australian sales, and owing to the uncertain position in the Continent many are said to be going without any definite programme. They will have to be guided by cable instructions when the position is better defined. Sales of Australian and New Zealand butter during the period of the dock strike are estimated to have about equalised the quantity which has arrived and been held up in steamers, so that stocks are still fairly large, but as supplies from all sources are now commencing to decline, traders generally consider that there is a good prospect of prices being maintained for the present. Fears have been expressed in some quarters that the holdlng-up of 26 refrigerated steamers in London owing to the strike, some of them since the end of June, would interfere seriously with freight arrangements for the next season. But there seems little ground for these fears, as shipowners consider that with mail steamers and refrigerated boats, which have been turned round to the West coast of England, there will be quite sufficient tonnage available for Australia and New Zealand when the first shipments are ready. The wine trade generally is going through a period of dullness, and from all sides come reports of poor demand. This is' particularly the case with claret, of which consumption has declined so greatly that a joint eriort is being made by Bordeaux shippers and English importers to revive its popularity by means of advertising propaganda. An extensive campaign is contemplated. Even in France the consumption of wine is very small comparatively, and though the presence of numerous holiday visitors in Paris and at seaside resorts has somewhat stimulated the demand,. sales generally are far from satisfactory. There is, indeed, a superfluity of wine in France, and all sorts of expedients' are being suggested to increase consumption, among them being prohibition of foreign wines. A novel proposal emanating from a senator is -that French soldiers' serving in the Ruhr, who already receive a daily ration of ha.l a litre of wine, should have the allowance raised to a litre. In the Rhine and Moselle districts the fall of the purchasing power of the mark has caused an enormous decline in the consumption of wine, and peopie are drinking nothing but beer, cider, currant and gooseberry wines, which they manufacture at home.

With the French and German wine trades in this position, it Is not surprising that business in Australian yanes is far from satisfactory. Board of Trade returns show that the consumption of Australian wines in the United Kingdon in the seven months leaded July 31 amounted to 364,000 'gallons, compared with 390,000 galions in the corresponding period of •last year, and 426,000 gallons in 1922. Apart from the general dullness of the trade, one of the chief reasons for this lack of demand for Australian whits is their dearness compared with French wines. The catalogue of one .of the biggest London stores contains Ja list of 15 French clarets priced at .from 24s to 39s a dozen. The cheapest Australian bungundy on the same catalogue is 42s a dozen.