TRADE REVIEW.

Hokitika Guardian, 30 March 1926, Page 3

TRADE REVIEW.

LONDON MARKETS. MONEY, WOOL AND BUTTER. LONDON, .March 27. Business in most departments of the Stock Exchange has been extremely dull, with prices tending downwards, hut gilt-edgeds, after some uncertainty early in the week owing to the money stringency, have become distinctly firm, as money conditions have improved and should improve next month. Easier conditions are then expected. The flood of new capital issues continues, this week’s amounting to CD. 177,1)1X1. They met with varying degrees of success, some, like the New South Wales loan, Imi ug left largely in the underwriters’ hands, others lieing rapidly oversubscribed, especially those giving a high rate of interest. A notable success was the San l’aulo waterworks loan of two and a half millions, 7 per cent., at C9(i. The public rushed this issue, which is now quoted at Ij per cent premium. The New South Wales script is now about thirteen-sixteenths discount, but the underwriters are not perturbed as they ex|K‘ct that the discount will soon lie wiped off. WOOL TRADERS SATISFIED.

Moot trailers generally express satisfaction at the result of the sales just concluded, u Inch were regarded as the most critical of the season on a( count of the large quantities being ollered in Australia. New Zealand and South Africa simultaneously with the London auctions. This naturally meant a great strain on the buying power of the wool industry, and taxed financial resources somewhat heavily, but to quote u leading authority, there has been a minimum ot weakness and in London all the best merinos and finest eross-breds slightly hardened in value. This has given the trade an assurance of confidence which so far has been lacking. Business at the consuming centres is not yet brisk. The improvement. though noticeable, is slow, and traders are showing great caution alter last season’s experience. The markets are still extremely sensitive, financial interests .sometimes operating unfavourably, particularly for Continental business. Consequently there are no indications of any definite upward movement. The great desideratum is a minimum, of fluctuation. Any material advance would probably check new business, and a decline would again destroy confidence, which is just becoming established. THE BETTER MARKET.

The improvement in the demand for colonial butter has been maintained, and the trade this week Ims been satisfactory, probably largely due to the retailers filling their Easter requirements, but buyers arc only operating from hand to mouth, and there is a complete absence of speculation. This is due to the knowledge that there is a large quantity of butter stored here. Opinions regarding this quantity differ considerably, ranging from one million to half a million boxes, litis wide divergence lias revised the agitation for the publication of official statistics regarding the quantities in cold stores, as i-5 done with other commodities, and it. is suggested tlm! the Australian and New Zealand Control Boards should take the matter up.