FORTNIGHTLY REVIEW

Hokitika Guardian, 15 September 1925, Page 4

FORTNIGHTLY REVIEW

I’A VO UR-ABLE MON ETA R Y CONDITIONS.

LONDON. Sept- 12

After a period of dullness almost approaching depression. the gilt-edged section of the Stock Kxehiinge developed a nint h brighter tendency yesterday, thanks chiefly to the abundant supply of cheap money. Previously monetary conditions had been unfavourable. and there was a. general, though slight, decline in all British (lovcrnmciit stocks. Yesterday, however. there \va-‘ a revival of public interest with considerable buying, and prices showed a general recovery, following the lead of the -‘>l per cent, conversion loan, which advanced throeeighths. The tone of the Exchange is now distinctly hopeful, there being an impression that, with the close of the holidav seas.n. business will improve. Home rails and industrials generally have been adversely ai'leeted hv inllanimatorv spreehes Sit the Trades Union ‘Congress, and also hv the Board ok Trade returns, which reflect the existing industrial depression and tend to cheek any feeling of optimism regarding Home trade outlook, hut rubber shares continue firm, and the fortnightly settlement therein was a wrv heavy one. ' KOKKICX EX CD ANDES. In the foreign exchange market there have been considerable dealings in dollars, at rather weaker prices, owing to dearer money in New York, hut the outstanding feature lias been the l sharp recovery ot the Italian lira, following the Coveniment \s drastic measures to protect the. lira from speculative inlltieiicos, both at home and abroad. Till'. \Y()ol. MARKET. The opening of the wool sales next Tuesday is awaited with even greater interest than usual, in view of the large <|iiantity to be offered. Contend ant 'eipalion seems to be that pricewill lie firm. A well-informed currest ondeni of the “Economist” says:—■ “The big weight to he catalogued liafrightened no one. and a very sound opening is expected. The Continent o ui.doubt edly in a buying mood, and it looks as if Eranee is going to fm-er the pace. This is till to tile good of Australian growers, but. what really matters most to the Home trade b whether fabrics can he sold on the basis of the cost of the wool bought ill to-dav's values. However, expectations favour a good demand for raw material', and last sale's prices snotih be easily forth''tilling. \\ e certainly think the manufacturing position i; generally belter than it wit', it i just a fittest ion whether the bit weight of crossbreds can be lilted i' t o notch .I illy prices, but every tliiig stems to it’d;'ate a very heavy de maud for wool." Another corrospifnident- points on t that the Ercneli demand is mainly fot military purpit-os in North Africa and should hopes ot a vital blow Point soon struck agaiti't the Hills he real isoil tlu* lioaiH-ia! position of Kralus will cause a speedy cessation of wool buying for the Army. Should Brains suddenly drop out of the market, woo prices will be just as importantly inti ticnred. M ueli apprehension has been ex pressed in the heavy woollen trade regarding the new Australian tariff. According to a Dewsbury correspondent the iarilf will seriously handicap th< trade in that di'tli't. and the effectare already being felt. The agent ol an Australian importing linn tele graphed pi a leeal linn cancelling orders for two lots of cloth which wort practically ready for delivery, and the local firm in iptcxtion felt oblige lo ae-epl the cancellation-, in ordei not l - prebidi e future transactions hoses alo have been sustained by other linns, owing to .similar cancellations. BUTTER. ftiitter prices continue to harden an ! trailers generally expect, the limitless to be maintained for some time as supplies will he moderate until the new m'-isoh's Australian .and New Zenland shipments begin to arrive. At the moment strikes are causing considerable doubt about when that, will he. Supplies from other sources arc rapidly diminishing, the cold wvntliei in Denmark having already reduced product ion. (lermany's production is also declining steadily, and Hermany is buying largely But -It and Spanish butler, though those purchases will probably cease at the end of the month, when the Herman import duty ol ] Is per ewl. comes into operation.