BRITISH TRADE.

Hokitika Guardian, 31 January 1928, Page 4

BRITISH TRADE.

FORTNIGHTLY REVIEAY. OUTLOOK AIUCH BRIGHTER. (Australian A* X.Z. Cable Association.) LONDON. Jan. 28. During the last few days the ”Rig I'ive” hanks have held their annual meetings and -the chairman at each meeting delivered the usual review of tl’.e financial and trade position. It is gratifying to note that all of them were l.'oarers of tidings of comfort and joy Rarely, if ever, has there been such a consensus of optimism. One of tne financial newspapers hits it off thus: ‘‘ln a chorus with no discordant note, though with slightly differing emphasis or caution, they tell us that trade has revived, is reviving and stuns likely to continue to revive. Ihe optimism is reflected in the ■’Economist's” monthly rev lew of the state of trade, which shows that there has been a general improvement in the unemployment position, and, while

the average wage rates remain stationary the cost of living has do,lined seven p ints, compared with. Down i her. 1025, in other words, real wages have risen. These facts show that Ike state of trade has improved, and sueh indications as are available suggest the prospect of continued muvenient in this direction. A USTR ALLAN BOR HOMING. Interest has been aroused here by news, cabled firm New York, that negotiations are in progress there for an Australian loan of £5.000.000 or £10,000,000. Discussing the subject, the London representative of an important American banking group referred to the increasing popularity of Australian loans in the United States, whore an enormous amount of capital is awaiting investment. He pointed out. however, that Canada was at present able to borrow there much more cheaply than Australia. He asked: ‘‘AA'lmt Canadian loan there is yielding the investor 4.46 per cent?” and added : ‘‘Australian 5 per cent, give the investor 5.13 per cent." Canada’s advantage undoubtedly to some extent is due to the geographical position, hut this authority was inclined to believe tnat Australian credit in New York

could he raised to at least a 5 per cent, basis, and. iii course of time, to 4j per Cent. lit order td do this it would i be necessary to -create ah increased

demand for bonds by advertising propaganda, and also by getting them made trusted securities in all American States. At present Canadian bonds are trusted stocks in all States, but Australians have not this advantage, except in t"'o or three. WINK TRADE. A circular issued to the wine trade by the Southard Company Limited, recognised as one of the chief authorities, says “Prospects of trade are distinctly brighter. It is unlikely that the Chancellor of the Exchequer a ill disturb the wine duties this year, unless be is convinced that duties on British wines should be raised to the level of Empire wines. It- is also passible be may be induced to raise the dividing line of strength for the low duty on foreign to that for Empire wine, namely 27 degrees. The wine trade would welcome both these adjustments.” Regarding the exports of British spirits Southards say: “Canada is now our chief oversea customer, taking last year 1.117,C0P gallons, compared with 1.168,000. t'litil last year Australia headed the list, hut since she thought (it to increase the duties on imported spirits, her own product has gained at our expense. We suppose it is only right that charity should commence at home, hut it seems rather inconsistent that the Commonwealth should penalise our products at the same time that we have granted Empire produce suhstanial preference. This treatment is scarcely just, or in keeping with the policy of reciprocity they advocate.” WOOL TRADE. The feature of the wool sales closing on Wednesday lias been the remarkable steadiness of values and the keenness of competition. Yorkshire. German, French and Swiss 'buyers arc all buying freely. It is hardly possible to rcioi'd any actual advance in prices, but it can safely be said that wherever there luls been a. change it has been against buyers. As a Bradford newspaper says: ‘The general desire for cheaper wool remains unsatisfied. There is little if any prospect of movement towards a lower level. It is one thing to wish for cheap wool, and another to secure it, in the face of foreign competition which seems to intensify as the season progresses, and supplies m first-hands dwindle.