FINANCE AND COMMERCE

Hokitika Guardian, 10 November 1925, Page 4

FINANCE AND COMMERCE

fo'rtxightly review. THE STOCK EXCHANGE. , LONDON, N0v.,7. The removal of restrictions on foreign and dominion borrowings has produced a rather mixed efieet on the Stock Exchange, the gilt-edged group being depressed all round in view of the probability of the early issue of a number of new loans which will divert investment funds irom existing channels. Industrials are showing firmness. The activity is based on the supposition that foreign anti dominion borrowers will spend a considerable portion of their loans in this country. Ibis hope, which ought to he realised if we mav believe such authority as the Federation of British Industries, has caused a general improvement in what is known as heavy .industrial shares, like iron, coal and steed, and tlio improvement lias spread to ojher industrials. It is announced that all of the new Gold Coast loan of £4,500,000 except what is required to pay local labour will lie spent in this country, but even this satisfactory feature has not secured the loan an enthusiastic welcome, for its price is regarded as too high. Allowing for redemption, the yield to the investor is. only 4J pel' cent, and this does not compare favourably with similar existing securities. THE .MKTAL .MARKETS.

The metal markets have been somewhat* adversely affected by the political crisis In France and Germany, and the further depreciation of tlio franc lias made French buyers extremely cautious. but business with tlie United States leaves nothing to be desired. According to a report issued by a lead-

ing firm ot metal brokers, it is generally admitted that the present activity of the stock market in New York reflects satisfactory conditions in most branches of trade, and in view of tlio great, aceiimulaton of wealth there is no reason why the activity should not be maintained. Reports from the United States indicate a consumptive demand fully sufficient to deal with supplies of copper, lead and spelter. Only in regard to tin is a tone of scepticism expressed, and this happens to ho the only metal America does not produce and must import. American writers have for a long time preached to consumers that the value of tin is too high and susceptible to a sudden break, as has happened in the past. Consumers, accordingly. have only billowed the advance of prices when they have been forced to, and have limited their purchases to near requirements. The intrinsic position of tin perhaps is stronger than any other metal, lor Li 10 experience ot last year teaches that even the extraordinarily lucrative price obtained by the producers lias not resulted in an increase of supplies sufficient to fill the needs of the world’s consumptive demand.

THE WOOL TRADE. Reports of the Bradford wool trade are distinctly encouraging, and the demand lias been so good that the market has been cleared of several qualities, and top markets are unable to accept new orders for delivery this year. One of the best features of the present situation is that machinery is belter employed than at. any time since tlio bite slump. A Bradford correspondent writes: ‘’.Manufacturers have booked some vetx_good orders, both Home and for export, during the last month. Many now have suftieien! work in band to keel) their looms employed till after the turn of the year. The main difficult v is to* induce buyers to pay Pi#es in keeping with replacement costs. Undoubtedly many merchants are hoping for easier prices early in Hie next year, lint the general impression at the moment is that values will be maintained till the end ol 1925- Coinli-

timis in tin* spinning section show a marked improvement, and. whereas a

tew weeks ago spinners experienced great difficulty in keeping their maeliiiteiv running, several arc now working

overtime in order to rapt* with urgent demands for delivery. A sudden spurt of netivity also found the hosiery trade unprepared. and nianul act un*is an*

being pressed for delivers ol goods which might and ought to have been ordered long ago.”

« THE TRADE IMbSITTON. Summarising the trade position

“Barclays Bank Review” says that the progress made at Locarno should enable expenditure on armaments to be reduced, and enable more attention to be devoted to linttncial and econo-

mic reconstruction and development. wliieli* would considerably facilitate trade oxpnnsnn. Favourable European harvests give a prospect* ol an abundant jnppl.v of foodstuffs and many classiVx of raw material at lower prices than in recent years. This should exert, a beneficial influence, broadening tbe demand, while more active stops by'several countries to stabilise their currencies should further assist. It is true, a number of the more important industries are still in an unsatisfactory position, but greater activity in the engineering trade is evidence that in some directions at last progress is being achieved.