FINANCE AND TRADE

Hokitika Guardian, 5 August 1925, Page 4

FINANCE AND TRADE

'FORTNIGHTLY LONDON REVIEW

STOCK EXCHANGE AND COAL CRISIS. LONDON, Aug. 1. The predominant factor on the Stock Exchange lias been the coal crisis, and prices have moved up and down with' the varying phases of the negotiations between Air Baldwin and the employers and men. The movements, however, have not been great either way. and gilt-edged stocks have generally maintained their position. Yesterday saw a hotter tone all round on the expectation that a favourable settlement was probable and the nows of peace, which came just before Ihe market closed, brought about a general recovery. Home rails, which had previously been depressed, not only hy fears of a strike, hut .of the announcement of reduced interim dividends by two companies, finished appreciably higher. DOMINIONS’ LOANS. A satisfactory feature has been the firmness of Dominion stock, and the new Australian and South African loans, both of which were quoted at uli-ont three-sixteenths premium. Commenting on those issues, the “Investors’ Chronicle" says: “By raising loans, which may remain until 1975, Australia and South Africa haijp initiated an extension of rates, which other gilt-edged borrowers will probably follow. By increasing the period between the earliest and latest redemption dale. Australia and - South Africa have secured a valuable option, but investors should regard these loans as twenty-year securities, lor during that period probably the interest rates will fall, and in that event these stocks will he funded at a lower interest. CEREAL CROB PROSPECTS. The world’s cereal crop prospects appear to he decidedly satisfactory, for the International Institute of Agriculture predicts increases in the wheat, rye, barlev and maize crops and a reduction id oats only. With regard to wheat production in the Northern Hemisphere, tho forecast for tueuttone countries, including Canada and the United States, twelve European, four Asiatic and three North Alrican countries, estimates the yield lot 10-2-1 at 1.208.003.000 centals, as compared with 1,241 ,01X1,000 centals last year. The institute points out that these figures represent, only 70 per cent, ol the aggregate production of the Nci then) Hemisphere, but it may he safely anticipated that when the data. is completed they will show a considerably greater increase over 192-1 than the present figures indicate. APPLES. Although the hist four or live cargoes of Australian and New Zealand n'pplos have not met with a good market, and only poor prices, owing to the unexpectedly large supplies of Continental soft fruits, the results of the season as a whole must tie regarded as eminently satisfactory for growers. The greater part of of the fifty-two cargoes which arrived sold at high prices, and tlu 1 losses entailed poor returns. I’he last few heals fell on speculators who had bought fruit outright from Australia. D is interesting to note that one of tin- large importing linns attributes the successful results largely to the “Eat More Eniit” campaign, which, this linn says, has E'en highly beneficial to the fruit trade. STABILISATION OF WOOL. The reject ion ol tin' New South Wales Graziers’ Association of Sir .1. M. Higgins’s wool slabilsat ion scheme, has given silt isl net ion to wool tradels in both Bradl’oiol and London. \\ itb regard to: the graziers’ proposed marketing of wool by a committee under the new control. a prominent woolgrower. interviewed hy the "Yorkshire Post.." said: “Any artificial restriction on supplies from Australia is likely to harm, rather than to benefit. Australian pastnralists. It would give a tremendous liillip to the -South A trican wool-growing industry, and. (hough competition for finer qualities would scud prices to an inordinate level, there could he no question of forcing the London market to absorb Australian staple at iinrenmnei alive prices. Neither the growers nor the Yorkshire maim fact tiroes are disposed to f--.liul their eyes to the tael: that wool is not essential. In every' pioecss in which il is now employed the pronounced shortage of wool will ff*\e further inipeto- to the production ol substitutes, toil the liuauciat diffietill ies will. I think, prove too great to permit of Australian growers embarking mi so ill-advised a campaign as that, which is contemplated by the wool growers of New South Wales.