BRITISH TRADE.

Hokitika Guardian, 4 January 1928, Page 4

BRITISH TRADE.

FORTNIGHTLY REVIEW. STOCK EXCHANGE ENDS YEAR ' WELL. (Australian & N.X. Cable Association. LONDON. Dee. 111. The Stock Exchange wound up the year in great style yesterday with quite a boom in British funds, some of which closed not far from the highest point of the year. Business had been somewhat restricted since the resumption on Wednesday, as is usual at the end of the year, hut there was firmness all round. Just before the House closed an announcement was made that the list for fresh applications for the new Treasury ."> per cent, bonds had , been closed two days before the ndi vortised time. This evidence that subscriptions had been very heavy had the effect of causing all funds to advance. The news led to a revival of talk of an early reduction in the Bank rate and cheaper money, and brokers and jobbers separated for the New Year holidays in the happiest frame of mind. | Dominion stocks share the firmness I and it is satisfactory to sec New South | Wales loan scrip quoted at about ono- ! sixteenth .premium. This is a good reI ply to the pessimists, who had been urj taring nasty criticisms about the State - and its finances, because the undor--1 writers had to take 62 per cent, of this loan. I Some measure of upward tendency on the Stock Exchange during the year may he- gathered from tlie fact that ,'iOo representative securities, selected by the “Bankers’ Magazine.” appreciated by just over 4 per cent. WOOL TRADE. i Discussing tlie wool prospects, the “Yorkshire Observer” says: “With smaller supplies from Australia and no compensation elsewhere, no one expects any drastic fall in prices, for. assuming that a slight reduction should he possible, the competition, which would thereby he encouraged would prevent it proceeding far. The wish for cheaper wool is general, hut topmakers are not prepared to net- upon the assumption that it will he obtained. They are not deviating from the policy of being on the safe side by basing quotations upon the actual cost of the raw material. It is reported on reliable authority that German and French stocks of raw material are only normal, and in the circumstances, it is only reasonable to suppose that German and French competition will continue to lie considerable, and prevent any undue sagging of values. It is also reported that t'nited States importers are seriously considering the replenishment of foreign wools and they may he keener competitors for raw material than they have boon j n the first half of the season. We cannot-expect Japan and Russia to drop out entirely.

and, on the whole, Bradford will liavo its work cut out to get in on a favourable level.’’ A BRIGHTER OUTLOOK. An optimistic view of British trade and industry is taken by Lord Gainford, president of the Federation of British Industries. He says that, “taken as a whole British industry looks forward to 11)28 with less misgiving than in any year -since the war. It is now generally recognised that there has been, in recent years, a great increase in our internal trade, but that, comparatively speaking, our export [sort trade has been depressed. Fortunately there are fairly definite grounds for the hope that the next twelve months will see a recrudescence of our overseas commerce. The period of falling prices is at an end, so is the period of artificial scarcity of gold, which gave rise thereto. For the first time since the boom of 1910 gold has flowed into the Bank of England in response to natural exchange movements. .Moreover, no less than half the world's tonnage of shipping under construction is being built round the shores of the British Isles, which is most welcome news, from the point of view of national prestige. I find ground for optimism in the marked change in the atmsophere of the relations between employers and employed. If only wo can retain and develop this spirit of sympathy and co-opera-tion there need lie little fear for the future.’’