BRITISH TRADE.

Hokitika Guardian, 11 June 1925, Page 4

BRITISH TRADE.

STOCK EXCHANGE WEAK. EON DON. June 0. The gilt-edged section of the Stock Exchange is suffering from a severe attack of indigestion, its absorbing power being insufficient to assimilate the recent glut of new issues of which the undentriters have been compelled to take up a very large proportion. It was Imped that the distribution of £so,o"o,<H>o as dividends on war loans ate the Izeginning of the month would at tile beginning of the .month would have had a good effect but so far the public, bus shown no inclination to reinvest this money in any of the n* w sciipts. Consequently, a-s alt these scripts are still quoted at heavy discounts, underwriters have been compelled t:> sell large quantities of their giltedged securities, notably conversion loan stock, with the result that prices have given uav all round.

Another feature, cotiitributing ho weakness was the expectation of Ittrther new issues in the near future, but yesterdat the impression gained ground that these new loans will l,e postponed until conditions are more favourable, and the markets dosed with a

slightly better tone. Other sections of the Stock Exchange reflected the weakness of the giltedged market and there has been a net-able apathy in speculative departments. the one exception being rubber shares, which slime a great activity as

the advanced price of raw material is now being reflected in profits and dividends, witii the result that new investors are being attracted. foreign exchange.

A feature of the foreign exchange is the continuous decline of the French frail.* and the consequent depreciation ol the Belgian Irani* and the Italian lira. To-day the French franc is quoted at- 192.85. An official statement by the French Government explains that the heavy selling of frunts is due ta genuine dollar and sterling requirements for the purchase of cotton and corn, but doubts are express'd! regarding the correctness ol this view, as the import season is too far oft to necessitate the covering ol currency requirements but even if the explanation is correct it pro-ex tlni Ft emit importers are anti Iputing iiirthe:' depreciation of the franc. Al’fl.K I'RICES. Apple price*, arc being maintained in a manner which surprised importers and tin* demand riuitiur.es to be -iron", and supplies are clearing so well that seller-' ideas arc decidedly bullish. Wo arc having a spell of hot weather, which '-•ill bring straw berries along in

another week or two. and when there is a glut of them apples may he alfi- ted. but trailers generally think this will not last more than a fortnight or three weeks, and afterwards they expect the demand for apples to lie as good as it is now. WOO!. TRADE (,)FIF.T.

The wool trade is very quiet-. Many mill- in Yorkshire have closed for a week or ten days, the usual Whitsuntide recess King extended owing to general slackness and in .sonic eases in order to curtail production. The only encouraging feature is that some spinners report that- customers arc giving out small orders more freely, encour-

aging the belief that they arc of opinion

that values are now on a basis which will bring out liiixines.s in piece goods, provided there is no inclination to speculate, however, in either tops or

yarns, buyers ] referring to operate conservalively pending the resumption of the wool sales in this country and Australia. As might le expected, the proposal to revive Bawra does net find .support in Yorkshire. The wool correspondent of “The Economist'’ writes: "There are more object ions to a scheme like Bawra than advantages. There is no national nor Empire e'd! for it. as there was during the war. Wool growers and wool user, will nei toh-rate State interference with their business, exeunt under due nei e.'.sity. ’I In* imposit ion of selling reserves will not compel users to buy. and llii, is a fa*t of which Hie promoters of the scheme seem altog( lher to have lost sight. If selling reserves are to he fixed, users ought to have some way of fixing them. a< the industry depends ju>f as mm h upon