BRITISH TRADE.

Hokitika Guardian, 15 February 1928, Page 1

BRITISH TRADE.

FORTNIGHTLY REAM KAY. MONEY A LITTLE DEARER. (Australian & N.Z. Cable Association.) LONDON, Feb. 11. The gilt-edged section of the Stock Exchange lias been somewhat overshadowed lately by the upward tendency ol money rates, in view of the knowledge that there is no hope of an early lowering of the Bank rate, and Mr. Winston Chin-chill’s announcement that a reduction of the income tax is out of the question. Consequently loans have shown some weakness which is reflected more or less in other investment stocks. Dominion issues however, remain steady, many showing a slight appreciation. Rubber stocks have been under a cloud since the announcement of the Geverninent inquiry into restrictions, but there has been a small boom in qti'her industrials notably gramophones, artificial silk, elect l ie supply and newspaper shares. LOAN IN NEW YORK. The news, cabled from New A’ork. that the Australian Government is floating a loan of £10,000,000 to £15,000,000 there created some interest in financial circles, although definite information regarding the issue is not obtainable. Newspaper cablegrams from Sydney state that it is believed in financial circles there that London would per for the issue being raised in New York. From wluit can be learned in best informed quarters, there is not the slightest ground for this belief. In this connection it may l>e pointed out that sinc-e July, seven Australian loans, totalling over £30,000,-

‘ 000, have been floated here. With the ; solitary exception of the City of Syd- * ney issue, all tliese are now quoted at ; substantial premiums. WOOL TRADE. Discussing the wool position, a Bradford correspondent writes: “Persistent hardneing of raw material values has had the effect of creating greater con- ■ fidence in other sections of the indusl try, and consequently there is steady business, and prices for partially and fully-manufactured materials are being gradually placed on a higher level. This continuous response to the lead 1 given by the raw material and substantial active bidding for wool at Colonial sales, despite hardening prices, encourages a feeling of optimism, particularly at the raw material end of the trade. But ou the other hand some predict a very awkward time for our spinners and manufactures in the second half of the year. Assuming that the present measure of world consumption is maintained, and there are no difficulties in financing the present purchase of wool, and acute scarit.v of all qualities of wool is not improbable, with something akin to famine prices later in the year, But spinners and manufacturers in this district are not worrying unduly about the future. They are making the most of the opportunities offered by the present improved demand for their products, and limiting their risk by carrying light stocks. So, when the reaction comes, their loss will he restricted.” DAIRY PRODUCE. In connection with the agitation for ! tho removal of the prohibition on pro-, servatives in butter, one of the biggest blenders stated that bis firm this season was compelley to abandon Victorian of which it previously used large quantities, substituting for it Estonian and Latvian, for which it is paying a higher price than that asked for in Australia. The official price list of flic Produce Exchange yesterday quoted Australian at 15Is to 158 s, exceptionally line IGOs: Polish, 157 sto 160 s. PRICE OF HIDES. In an interesting article explaining the extraordinary advance in the prices of hides and leather, the “Statist” says that two factors are mainly responsible. Firstly, hides are purely byproducts, and their number is regulated bv the consumption of beef, as cattle are raised and slaughtered for lieef. There has not boon an increase in the consumption of beef commensurate with the increase in the usage ol' leather. There has been a very large increase in the demand for leather for the motor industry. It is estimated that in the United States, motor upholstery now absorbs 62 per cent, of the total production of dressed hides. A second factor contributing to the shortage lias been the heavy replacement buying hv the United States and Russia.