BRITISH TRADE

Hokitika Guardian, 13 September 1927, Page 1

BRITISH TRADE

FORTNIGHTLY REVIEW

LONDON, Sept. 11

The activity in industrial shares on the Stock Exchange continues, with artificial silks as the most popular gambling counters, arid - large numbers of them are changing -hands daily. Gilt-edged securities-remain dull, the beneficial effects of the announcement of 'the Government’s new conversion scheme having been only short-lived, owing to uncertainty about terms, which will not be announced until the end of next week. A satisfactory feature is the strength of Colonials, particularly recent issues, which, though not active, remain firm. 'The last Commonwealth loan closed at only one quarter discount. LOAN TRANSACTION.

-Discussing with the Australian Press Association the flotation oi the recent Australian loan, a prominent New York hanker said he believed it- would ho to Australia’s advantage to confer for several weeks with prominent influential groups of hankers in New York and thus obtain the best terms. It would also ensure a wider distribution of Australian securities in the American market, and so avoid congestion ol Australian securities there, such as occasionally occurs in London. ‘ CENTRAL BANKS.

The development of central hanking systems in Australia and New Zealand continues ;to attract the attention of financial exports. Commenting on tho Bank of New Zealand granting longterm advances to the agricultural community, the “Financial News” says:— “ AVliifo we can readily, appreciate the motives which .prompted the hank to make this departure, the assets it has thereby acquired scarcei'y seem of a kind suitable for a central hank, one of whose essential duties is to maintain a highly liquid position. Doubtless this long-term financing may he looked uiioii as a temporary arrangement which will be transferred to other hands as purely commercial institutions show stronger growth and plans Tor the bank’s regulatory activities begin to t.ke more definite shape.”

METAL OUTLOOK. Discussing the lead position, a wellinformed metal market correspondent says There is no denying the fact that the price has now fallen to an uneconomic level for many producers. There has been much unloading by speculators who recently purchased at a higher level. This, combined with rather free selling by leading dealers, accounts Tor the continuous fall, and it is feared the price will inevitably drop further. The main trouble is excessive world production, and this must he corrected to some extent before tho market can right itself. WOOL SALES.

Prospects for Tuesday’s wool sales are favourable. The correspondent of the “ Economist” says:—“During thesix weeks since the previous auctions an encouraging amount of business has been done in consuming centres. The total volume is much larger than seemed likely when the July auctions closed. Many buyers need wool, stocks having been considerably reduced in hulk. Merino offerings will ho at to 5 per cent advance, which importers expeoF should not hold, for any further advance wil? result in Continental com-, petition rather than increased buying by the Home trade. WINE TRADE.

The French wine harvest is now in full swing, and, despite bad weather, it is anticipated that the yield will be much better than last year, totalling between 50,000,000 and 55,000,000 hectolitres. The situation in Tournine, where disaster was feared, lias considerably improved, and it is hoped between 20,000,000 and 24,000.000 hectolitres will be harvested there. An average harvest is expected in the Gironde, and a favourable yield is also anticipated in Burgundy. Champagne reports from Tarragona say that there an unexpected crop will he huger than last year, which was only about half of an ordinal' v vear.