ENGLISH TRADE

Dominion, Volume 15, Issue 80, 28 December 1921, Page 5

ENGLISH TRADE

CHEERFUL TONE ON STOCK AND SHARE MARKET WOOL OUTLOOK MUCH BRIGHTER I By Telegraph—Pre»« A«soclation— Copyright . London, December 26. Tho stock and share markets have? closed for tho holidays in the most cheerful mood. Business in gilt-edged securities has been on an enormous scale. Same firms and dealers are reported to have done 1590 to 2000 bargains daily during the past week. Quotations bad advanced steadily until Thursday, profit-taking caused a slight relapsed in some securities; but there is a strong ■underlying feeling of confidence, and the prospects for the,New Year are distinctly favourable. Monetary conditions appear to warrant a reduction in the Bank of England rate to 4J per cent. If this is made then the prospects for numerous new issues expected after the holidays appear to be very hopeful. Christmas Markets Return to Pre-war Conditions. The outstanding feature of the Christmas markets has been a return to almost pre-war conditions, many commodities selling at about 1913 prices, notably oranges, apples, sweets, keys—of which Germany sent enormous quantities at prices even cheaper than before the war. Despite unemployment, everybody seems to have money to spend, shopkeepers doing, a roaring trade. Many people habitually postpone the purchase of the Christmas turkey till the. eleventh hour, hoping to secure a bargain if the weather is warm on Christmas Eve. Those who have done so this year have fallen in badly. Early in the week turkeys were selling at Is. 3d. per pound. Then came news that the French farmers would not sell because the price was unremwnerative. This was followed by the arrival of large numbers of birds from Central Europe, all unfit for human consumption. This caused a rush of buyers on depleted markets, with prices soaring hourly until they reached 3s. 6d. per pound, and even Is. more for Norfolkbred birds. Leadenhall and Smithfield markets were absolutely cleared of turkeys. Wool Values Very Firm. ,

Cheerfulness characterised the Bradford wool market on the closing of the year, with values, on the whole, exceedingly firm. The outlook is much brighter than at any time within, recent months. Topmakers are asking over 4s. per pound for 64’s’ quality, March delivery. The supply of. fine tops is barely sufficient to meet current requirements. There is some fear of a shortage if spinners’ business increases sufficiently to bring them into the market for tons. The position abroad is very similar. The demand in Roubaix exceeds tho output, and although wool combers there are working three shifts, the total production is absorbed daily. Merino tops are especially in request, owing to a fire in Rheims having destroyed a great part of the plant of a combing firm, which specialises in merinos. Many people anticipate that an increasing German demand will cause a further improvement in wool. It is believed that, whether present negotiations conclude favourably for Germany or unfavourably, the result will be a more settled exchange. With steadiness and the absence of violent fluctuations, business can be done with! Germany, which, undoubtedly, wants raw materials, tope, and yarns. The “Yorkshire Post” thus sums the position up: "Though some people appear too sanguine, undoubtedly we are steadily nearing a sounder condition, of affairs generally. The year 1922 may have some unpleasant surprises in store, especially in the clearing up of financial complications; but firms are now being established on a sounder basis, especially the primary sections of the trade, and that will help if there should be serious trouble elsewhere.”

Fixing of Butter Prices. The Board of Trade Food Department announces that, in view of the large arrivals of “free” butter, it is no longer possible to continue the system of fixing prices weekly or fortnightly for its stocks. Speedy clearance of the balance of stocks is desirable; but is only possible by yiariation of prices, not only from day to day, but from hour to hour. Therefore, the Butter Committee has been disbanded. The Department is prepared to consider offers from first-hand' buyers for the purchase outright pf stocks, also to consider 1 applications for the sale on a commission basis. Tho Department estimates that, the present value of its butter is approximately: New Zealand, first grade 130 s. per cwt., second 1205.; Australian, first 1125., second 100 s.; Argentine, 100 s. and 90s.—Aus.-N.Z. Cable Assn.