WELLINGTON NEWS

Hokitika Guardian, 6 November 1925, Page 4

WELLINGTON NEWS

LOCAL .MONEY MARKET.

(Special t-o “Guardiwi”.)

WELLINGTON, November -1

Too election campaign of the past lew weeks distracted from ordinary husiness affairs, although banks and hankers came in for criticism from candidates least capable of dealing with the subject. Judging by the trend of the share market there is apparent now a tendency towards speculation, One reason lor this change is that the better clas.-, of stock exchange securities are practically at the peak ~f prices and the interest yield to the investor is very small, in some cases ridiculously so. Those with loose capital arc inclined to speculate and so we find such shares as Taranaki Oil and Kawarau .Mining receiving considerable attention, Brewery shares have also commanded considerable attention and the demand has been strong enough to send all brewery shares soaring. There was the risk of Prohibition being carried but speculators discounted that and forced the shares upwards. It must not lie assumed from this that tie investors are becoming careless, on the contrary they still maintain a very conservative attitude and any of the high grade shares offered at a reasonable price are quickly snapped up. There is still a disposition to seek investment in Au-tra-lin and money is being invested in hanking shares of Australian origin. Thus during the nasi week sales acre made, of shares in the Australian Bank of (‘oiHincrec and shares ol the Western Australian Hank. For those who are content with a sale security yieldin.r -TV per cent have the choice ol the (iovernment loan now on the market and also the loans of some strong local bodies. As far as can be ascertained none of these loans are meeting witn the success that they probably deserve I,at allowance must be made lor the fact that the election campaign was a disturbing element and now there are other distractions like the Melbourne ( up. the New Zealand Cup. the lioyal Show, the Dunedin Exhibition and the Christmas vacation not far off. Sharebrokers with any lengthy experience know that business contracts during I lie last few weeks of the year, and remains dull until towards the end of January when it begins to brighten, more ospeciallv if the outlook lor produce is promising. It would be advisable not to attach any importance to Ihe fact that investment business shows a slackening tendency just now. It is perhaps worth pointing out here that the best security obtainable at the moment and that is the Government loan now on the market yields ."if per cent, and critics of the banks seem to think (if per cent on overdrafts is excessive. However (if per cent is the rate charged in Australia by all the hanks, including the Commonwealth Bank. THE WOOL MARKET.

Wool is now reaching Wellington in fair quantities, the fine weather recently experienced enabling shearing to proceed. Of course the talk now amongst business men is as to the prospects of wool. It is the first of our primary products to bring in a cash return. Thus the wool sold at the Wellington Sale on the Lilli instant will lie paid for on (he last day of the month and the growers who have sold their wool will receive their cheques on the following day, when overdrafts and other contracted debts can lie settled, 'the prospects of the wool market arc therefore of great inteiest. Since the close of the last London sales the Bradford top market, has shown considerable buoyancy and all (omits of tops have advanced .substantially except .Id’s which are regarded a.s hosiery wools. This buoyancy may be the result u| the shipping hold-tip causing the delay in the delivery of supplies from Australia. Against this, houever. must he set the fact that the sales in Sydney and Melbourne have displayed it firm touo with an advancing tendency. This seems to indicate that there is a demand for wool which is quite likely as stoi Its in all consuming centres have, been vary low. It does not follow that, this buoyancy will be permanent. There are many factors against wool. Kor instance the extended use of artificial silk or rayon as it is now known in the trade must continue to affect the demand for wool., .More recently in fact about the middle of last month it was announced that a company had been formed in London to manufacture

" Wiii7fulo.se ” consisting of 70 per cent jute fibre and 30 per cent of recovered wool, the mixture being i"‘silikated ” hv treatment with hot rollers. This substitute is, still to he proved a commercial success and if it is a sttc- < ess it will he a menace for it is claimed for till' material that it rivals the softest wool, and is very hard wearing. The financial problem is also an important factor more especially as France appears to he suffering from n severe financial crisis. Crossbred wool diould sell rea.soiinMy well.