MONEY AND MARKETS
DOWNWARD TENDENCY OF WOOL ARRESTED
DANGER OF INDUSTRIAL
TROUBLES
(By Teleirraph-Press Association-Copyright ffiec. September 0. 0.10 a.m.) London, September 4. A feature of the money market during the past fortnisht lias been a scarcity, which was undiminished after the turn of the month, much as expected, though the (Jovernment alone disbursed twenty millions in dividends. The outlook is nonsidered to remain uncertain in view of the forthcoming autumnal demands. The talk of a higher bank rate is renewed. The danger of coal and other industrial troubles overshadows all the markets. The Stock Exchange is quioi, industrial investments being principally affected, but the influence extends also to many gilt-edged securities. Tho comiwrativn steadiness of exclianaes during the oast week, after the iUietuatioiw in sterling in Prance in the previous week, attributed mainly to the belief that arrangements had been completed to redeem Irance's American loan. Though the autumn demand for dollars is likeLy to bo harmful, it is understood that the effect will bo largely discounted by forward buying dollars
Tho wool trado regards the improved tone and enhanced values at recent auctions as an indication that the downward tendency has been arrested, the leading factor being the increased American' and ConfJiiental buying. Moreover, Home spinners and manufacturers need further supplies after tho cautious policy pursued- for several months. The trade considers that while caution ib still needed tho latest developments prove that the earlier pessimism was unjustified. The better auctions aro likely to react on the wool trade generally At the same time well-informed circles do not consider a true basis of values lias been reached .vet, as supplies must continuo for a while to be an uncertain factor. Much depends on tho rate at which Australian and New Zealand supplies are marketed nnd transported. Tho industrial outlook continues to restrict dealings in metals. Copper possesses a firm undertone, but tin-is somewhat depressed. The industrial uncertainty is inclining speculators and other holders to realise little' fresh business. Them is fair bu.sines for' lead. The Continent is offering freely There is a poor market for spelter
Freights are firmer, under tlie influence of coal freifflits from America. A- British coal strike would be an adverse factor, but it is believed that tho grain and cotton movement in the autumn will more than counteract the same, justifying the hope that freights will contim'io to advance. Shipping circles nwoilt with interest the prices realised at Lord Inchcspe's forthcoming sale of enemy tonnage on bphalf of the Government' as the supply of the tonnage for (--ale far exceeds the demand.- Aus.-N.Z. Cable Assn.
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Dominion, Volume 13, Issue 294, 6 September 1920, Page 5
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432MONEY AND MARKETS Dominion, Volume 13, Issue 294, 6 September 1920, Page 5
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