BRITISH TRADE.

Hokitika Guardian, 21 December 1927, Page 1

BRITISH TRADE.

FORTNIGHTLY REVIEW. STOCK ECHANGE ACTIVE. (Australian & N.Z. Cable Assuci.'.uoii. LONDON, December 17. The Stock Exchange is ending its year in a most satisfactory manner, for considerable amination prevails in most markets, with gilt-eilgeds leading the way. Activity in these has been more notable than for a long time. Prices have improved all round and all recent new issues show strength. The unexpected appearance of the New South Wales £7,000,000 loan gave only a temporary check, and its reception was favourable. As one financial writer says: ‘‘lt is .significant that the mi-’ denvriting of this loan was easily arranged, sc evidently these accepting the responsihilitity believe that even if they arc left with a portion it will not be necessary to nurse the scrip for long.” In this connection it may be pointed out that within the last two months Dominions and British Government loans amounting to £33,000,000 have been issued in London. Some, like the Commonwealth loan, were left largely in the underwriters’ hands, and others were fully subscribed. But, with only one exception, all these* are now quoted at ar premium. Commenting on this, one of the lending stockbrokers said : “There is plenty of money here for the dominions.” Many new issues are talked about as likely at the New Year, but Australia’s wants seem to be satisfied for the present. There is unlikely to be any difficulty in placing them, for it is gonrally expected that money will be cheaper soon after the year is turned.

Some rather acid comment comes from the “Investors’ Chronicle,” which points out that the New South Wales loan brings Australia’s borrowing during tlm current year to nearly £57,750.000. of which £35.000.000 represents new money. Australia's imports for the. year ended June 30th. exceeded he exports by £20,000,000. This is largely a reflection of overseas borrowing and this excess gives cause for concern. Another consequence of overborrowing is that prices and wages have been inflated. Large imports owing to the tariff have greatly augmented Customs revenue and this enabled direct taxation to he reduced. This causes some to think that Australia is more prosperous than the facts justify.

DAIRY PRODUCE. The hopes recently prevalent of an improvement in the butter market hare not been realised. Trade has been phenomenally dull with falling prices. Why this should he experts cannot explain, for the statistical position seems satisfactory. One reason advanced is that invisible stocks (the term used for retailers’ holdings) are larger than they were believed to he. Certainly retailers have been holding off for some time, so apparently they had enough to go on with. Yesterday's official report. states that there was more inquiry at reduced prices, and with the retail price lowered to twenty jiencc a pound there seems to be some ground for anticipating hotter trade soon.

WOOL TRADE. Commenting on tlie wool position, a. correspondent of tlie “Economist” writes: “From what has been seen in London there is no indication of any setback in values in tbo near future. The policy should now be one of consolidation rather than an attempt- to push prices higher. During the next month a big weight of direct imports will be arriving, and in view of the drain upon the financial resources involved in lifting nil this wool, we think that for the present- the values of both Merinos and crossbreds are high enough and use re in consuming centres have found that it has been impossible to band forward to the ultimate consumer of last rise.”