BRITISH TRADE.

Hokitika Guardian, 6 July 1927, Page 4

BRITISH TRADE.

FORTNIGHTLY R KATE AY

STOCK EXCHANGE POSITION SHOWS STRENGTH.

LONDON. July 3. References have frequently been made of late to the inherent strength of the Stock Exchange position. It any proof that strength were needed "e had it this week when the markets withstood the shock of the collapse of a gambler oil a colossal scale with no worse result than the failure <d one unimportant broker. As a writer in one of the financial newspaper.' says: ‘‘The Stock Exchange, after the first feverish dealings in British Controlled Oilfields, took matters calmly. Buyers came forward for cheap stock, and ,the excitement subsided as quickly as it arose.” There is -till an anxious tune ahead, as the heavy differences in connection with dealings in these shares mut he met at the next settlement, oil July 14th.. hut there is plenty of time to make arrangements. While this excitement spread to other speculative markets it failed to disturb gilt-edgeds. which went on the even tenor of their way, meeting an improved inquiry, as is often the ease after a collapse in speculative stocks.

There was renewed activity in new Home Corporation and Colonial scrips, mid the recent New South "Wales and New Zealand issues showed good advances. Prospects, therefore appear favourable for the issue of the new Commonwealth loan, hut there is not yet any definite news about its appearance. Tn this connection it may be mentioned that about half a dozen foreign sterling loans have been recently floated here successfully, but as all of them yield over 6 per cent, the success is hardly surprising. There lias lieen quite a flood of new issues on the market, and Inst week the total offered to the public amounted to £6,177,630. while a further

£1,837,500 was offered by companies to their share-holders. •WOOL TRADE.

As the date for the opening of the fourth scries of wool sales comes nearer anticipation of harder prices grow more prevalent. The general opinion now seems to be that on 1 uesday we shall see values five per cent, above those ruling at the close ol the May auctions. One wool expert writes: ‘Mnore is

something approaching a squeeze in line wool, and only the inadequacy ol the Home trade manufacturing requirements prevented values advancing more than they have done. Since May the prospects of any great increase in the consumption of merino wool in the "West Riding have been none too good. 1 and users are unlikely to compete so readily as to cause an advance of more than five per rent. Values of fine wool have certainly appreciated to that extent during the interval, hut the weight of business passing in fine tops and yarns dees not justilv the payment of much higher prices. A simi- ( lai- advance may he expected in crossbreds. The expanding call lor crossbred wool tops and yarns on the Continental account has done a great deal to improve prospects in this quality, hut here again lopmukers arc very much dissatisfied with the prices they have been able to command for medium and low qualities. Immediately the outlook for the sa'e of practically all classes of wool is good. (iorm:in\ is expected to l e a large buyer, and other •Continental buyers .are expected to onerate freely.” ERF IT TRADE.

The prices of Australian and -New

Zealand apples have maintained a high level at all markets, especially Hull, .wlier the Continental demand raised values to exceptional figures. Liverpool and Loudon buyers also have been paying what can only he regarded as wonderful prices lor the time of the year .exceeding all records, except, of course, those of the control period, when the Government fixed the minimum price at IDs a case. During the next, fortnight about 130,000 cases of Australians are due to arrive at English ports, and the demand is still so good that the present- prices probably will he maintained. DAIRY PRODUCE.

The demand for Australian and New Zealand butters has been somewhat dull for the last few weeks, and prices have eased a lew shilling's. This was to be expected as the Continental output reached its highest point. The English supply was also very heavy. Now there are signs that the Continental glut is dimnishing. and the English output is lessening, so a better inquiry tor ( eloiiiuis is becoming apparent. and the market closes' with a. steadv consumptive demand all over the country. As the Australian and New Zealand -shipments on the wayare in small compass, the prospects for the future seem hopeful.