TRADE REVIEW.

Hokitika Guardian, 24 December 1925, Page 4

TRADE REVIEW.

FORTNIGHTLY REPORT. LONDON, Dec. 19. The boom in rubber shares on the Stock Exchange has come to an end as The result of a sharp fall in the price of tlio raw commodity. There was a brief revival of activity on a slight recovery in the price of the raw article, but to-day’s further fall of plantation sorts to 45d per lb may be regarded as tbo coup do grace to the boom for this year.

Other departments of the Stock Exchange, notably gilt-edged securities, have been rather depressed owing to the monetary stringency and the fear that the Rank rate might be raised, but the markets improved considerably when Thursday passed without an advance in the rate and monetary conditions became much easier. There lias been a considerable number of new capital flotations, chiefly industrial during the past Tortnight. the total amounting In about £16.000.000, ol which £12.000.000 i- new money. Several of these were rapidly over-sub-scribed, but several artificial silk companies met with only very poor response from the public. FRANC PROVIDES TURTLES. The French franc lias provided thrills in the foreign exchange market, this week, for* after rising to over 135.00 as a result of uncertain polities! and financial situation, it improved yesterday to 127.25 on the announcement of the textile industrialists’ loan scheme and to-day it. is still better at 125.25. It remains to bo seen whether this rapid appreciation is justified, for the industrialists’s scheme is only ill the proposal stage and further there is a. question whether the Luited States, where presumably it is intended to raise the money, would grant; any new loan until Fra nee has settled her war debts. WINE VINTAGE.

A forecast of the French wine vintage prepared by the newspapers “Monitenr” and “Vinieole.” states that the viold, will lie considerably bettor than was anticipated in September, the improvement being attributed to the favourable weather experienced < n many districts in Oetolwr which had a good effect oil Tlio vintage and to some extent, compensated for serious losses in other departments. The total yield is now estimated at 63,031,000 hectolitres, a decrease of 5,306,000 compared with 1021. The Algerian and Tunisian yields bring the total to 75.134,000. so apparently France will have sufficient wine to meet all demands. WOOL POSITION. Commenting on the wool position Mr V. 11. Dawson writes: “Sonic hopeful fcalitres are beginning to emerge from the recent perplexing conditions. The tension of being caught slant ol supplies for immediate needs is relieved and more wool is near at band. Consequently users are watching carefully for till' best opportunities fur replenishing. All this indicates a return to more normal, sale trading after a very disturbed period. There is a strong undercurrent of demand and a general anxiety to make early operations at n safe price, which appears in crossbreds to have been readied. T he lower level of values is encouraging a better turn-over and more machinery is running, liritain is again becoming a more important factor in Ihe world's markets. In. short-, the. worst phases of the disastrous year .just closing are passing away and, after the must severe crisis of this generation, llie wool trade emerges still virile and strong.” dairy produce.

A slight improvement in the demand for butter a week ago proved only a Hash in the pan and lli.e market relapsed into a state of apathy. This is largely due to the weakness in Danish, which lias slumped owing to the cessation of ihe (ternian demand. On Thursday the Copenhagen f.o.b. price was lowered to I 70s ewl, equal to about I7tis landed here, but, it Inis since recovered by about IDs. Retailers are now reducing their price and with best butter at Is Hid to 2s per pound, it is Imped that there may he ini improvement in consumption, which has undoubtedly been checked seriously b.v the high retail prices.