BRITISH TRADE.

Hokitika Guardian, 29 September 1926, Page 4

BRITISH TRADE.

FOR TXIG HTLY REV I E W . STOCK EXCANGE BUSINESS DISAPPOINTING. LONDON, Sept, 25. Business on the Stock Exchange‘has been disappointing, the continuance of the coal strike and the growing stringency of the monetary position having combined to produce a general reaction. Vague rumours of a new conversion scheme have also had a weakening effect, on gilt-edgeds, but conditions have not been improved by the unexpected appearance of New South Wales ‘as a borrower. The prospectus has been coldly received, and such ail influential newspaper as the “Statist” says:—“The present is not an auspicious time for new issues, and though there is reason to expect an improvement in the monetary situation towards the. end of the year, the immediate outlook does not justify heavy borrowing.” The earliest effect of the Xew South Wales issue has'been the marking down of several recent colonial loans, notably the last Commonwealth 5 ’ per cent, the scrip of which is now quoted at one and a quarter discount. Some comment is mjade on the fact that the New South Wales new loan is issued 1 at 97, whereas fast March a loan ex- ’ actly similar was floated at 98,’ but • it must be borne in mind that the J conditions in March were more fav- < ousible than now', as is shown by the ' price--of the 3F per cent conversion i loan, which is regarded as an index i

to gilt-edged values. It was then quoted at £75 15s. and Is now £74. FALL IN SILVER, Yesterday’s sharp, fall in the price of silver to 271 d. the lowest since March, 1916. was due to heavy sales on Chinese account. Commenting on the drop, an authority in the bullion market points out that the fall has been more or less continuous since March, 1920, when, tho price touched 39Jd (the lowest being 331 d). The fall had been brought about by the knowledge that the world’s silver supplies have been growing and the demand decreasing. Now there is the added factor that the placing of India on a definite gold standard basis for currency promises to deprive the world’s market of an important consumer, if, indeed, it does not result in heavy sales on Indian account. TIN PRICES. Discussing the relapse in tin prices one of the leading firms of metal brokers says:—“The operations on the London Motld Exchange do not affect tho position ns regards supply and demand. Where tin is wanted for eonsumption, there is still a considerate scarcity and high premiums are being paid for Straits and other descriptions of refined metal. The Americans have (taken advantage of the set-back to buv fairly freely and there has been a quiet but steady demand from consumers here and on the Continent.. Another broker slates that consumers, especially in America, are supposed to ho not too well covered. Some recovery mav be reasonably anticipated. PIHOE of wool. Pegnnling the wool situation, the Bradford correspondent of the “Economist” says that both in the primary markets and in London values are so much nliove the Bradford parity that many firms are obliged to become passive spectators, for they cannot compete with Continental concerns either in raw wool markets or in the sale of yarns and cloth. Yorkshire users are unable to follow flic market, .at the moment.. The recent advances in tops and yarns, made absolutely essential by the rise in wool, have curtailed the demand, and in all qualities the turnover Inis been disappointing. To-dav’s quotations are very firm, hut in nearly every ease where business offered it was at'a price well below the replacement cost. This an plies 1o tops, yarns, and piece goods. GERMAN RECOVERY.

Germany’s remarkable economic recovery is described in a report prepared by the Commercial Secretary to the British Embassy in Berlin, who says there is hardly another country of similar industrial importance which could overcome with such comparative ease the complete destruction of its currency, or which could have passed with equal rfipidity through the subsequent N periods of necessary, but extremely trying, reorganisation. With regard to Germany’s obligations under

tho Experts’ Plan, there are no serious grounds for apprehension. It seems probable that the full amount can he raised when the time comes. The burden cannot he rcgjirdcd as excessive, nor. making allowance for the respective wealths, is it heavier than that of other European countries.

Discussing the report, the “Financial 'Times” says:—“.Germany undoubtedly owes much to outside assistance. One of the 'chief obstacles to an industrial revival was the lack of working capital, practically all of which had been destroyed by inflation. Thanks to the influx of investment funds, mainly from the United States and in a lesser degree from the United Kingdom, Holland and other countries, this need has been sufficiently supplied during the last, two years. It is a sign of returning confidence that whereas lenders at first demanded 10 or 11 per cent, they subsequently were prepared to lend at 7 per cent.