BRITISH TRADE.

Hokitika Guardian, 5 January 1926, Page 4

BRITISH TRADE.

FORTNIGHTLY REVIEW

STOCK EXCHANGE

LONDON, Jan. 2

The (stock Exchange closed the year on a cheerful note, there being a quietly optimistic tone in almost* all markets. Gilt-edged securities showed firmness all round. Foreign bonds were mostly steady, and Homo rails were well supported owing to increased traffic receipts.. Tndutrial.s have,been quiet, but there has been considerable activity in oil shares, apparently due to recognition of the fact that the outlook in the oil industry has been steadily improving for some time. There is a general impression' that confidence will he apparent when markets ( ,n Monday, and, as one financial newspaper says, “on all hands signs are not lacking that activity may be oxccted throughout the Stock Exchange, for not since 1914 have eonlilions been so favourable to investors.” Another financial writer says: “The danger of a further early rise in the tank rate is regarded as having passed. and the year-end rise in sterling on New York is certainly very encouraging. hence gilt-edged stocks will probably be fairly maintained until the longawaited trade revival shows signs of development.”

CAPITAL ISSUES. * Details of capital issues of new money in London during 1925 show an increase of nearly £23,000,000 over 1924. the total amount reaching £232.51 1,510. This increase is interesting when it is recalled that the embargo on foreign borrowings meant that foreign Governments floated no loans here in 1925, whereas they borrowed £40,000.000 in 1921. and dominion loans showed a decline of nearly £20.000,000 as compared with 1924. The increase in the total amount is caused by the British Government having raised nearly £30,000,000 more than during the previous year, and to a number of industrial and commercial issues which amounted to £109,000,000 compared with £71,000,000 in 1924. WOOL TRADE. Prosper Is are discussed in the animal reviews of the two loading selling brokers. Charles Balms and Company writes: “In France uncertainty of the future course of exchange is causing traders to adopt a waiting policy. In Germany, flic wool industry has not sufficient capital to finance its purchases, and is finding difficulty in raising credit, hut it undoubtedly requires considerable supplies of raw material. Taking all circumstances into consideration it seems probable that current prices will be maintained in the early part of the year, though the irregularity of the Continental demand may cause fluctuations, blit latei, if France and Germany arc enabled to resume operations on a large scale, there should he a more stable market, and some recovery in prices.”

Schwiirt/c. Buchanan and Company writes: “The present fashion for women’s wear materially reduces the consumption of wool. We must also hear in mind the extraordinary expansion ' production of artificial silk and the record cotton crop in America as both these articles compete, to a certain extent, with wool. Fortunately, the present winter promises to be cold, and this should stimulate the demand lor heavy goods. Taking everything into consideration we incline to the view tlnil. with wool on the present basis, there should not be much danger, and tlnil there should be a reasonable pros- ; e' I of the maintenance of prices, possi!ilv with minor fluctuations, hut not of any material improvement in the near future, unless there is a general revival of trade.” Fit FIT TRADE.

The “Eat More Fruit’’ slogan appears to be producing a satisfactory result. At a reccnl meeting of the Glasgow Retail Emit Trade Association, the chairman expressed the conviction that more fruit win being distributed, not only by fruiterers, but also by groc-

ers. and new fruit shops were springing u.) in every district in Glasgow. Other speakers corroborated this. The excellence of Australian sultanas is referred" to in a review by a leading Liverpool dried fruit firm, which congratulates the growers, and expresses the hope that the saiisfaclorv season in 1925 will spur them or. to reach a yet higher slate of perfection in crops and packing, which this year showed a welcome improvement of quality and grading.