BRITISH TRADE

Hokitika Guardian, 8 October 1929, Page 5

BRITISH TRADE

FORTNIGHTLY REVIEW

WOOL MARKET IN DULL

PUSH lON

fUnited Press Association.—By Electric

Aoiefcji upn.—cmpjugiii.m

LONDON, Oct. 5. Under the tonioiimd i.inuence of the

Mauy giuup collapse a.ui the advance

oi the uaiiic race, the 15 lock Exchange ..as nceii parsing tinougli a period of anxiety ana depression, hut towards tne 'middle of tms weeii the clouds

snowcu signs or lilting, and, just be-

an e tne uose yesterday afternoon, reinarkaole sireiigtn suddenly developed ■ n me gni-cugiu market, with a sharp recovery, the war loan and funding man taking tile load. The improvement is at minuted to several causes—partly to Mr Pnilip ftnowden s sound re-assuring speech at the Labour Conference, tne recovery of the French and American exchanges, and the absence of any further withdrawals of gold from the Bank of England, while the

announcement tnat tiie Bank received a million sovereigns from Australia

lias assisted the sentiment consider-

ably. The arrival of this Australian gold is very welcome, for it has converted a net loss for the week into a

net gain of £981,405 and has reduced che net efflux for the current year to £23,815,545.

MONEY POSITION

The money position, in fact, seems co 'ue cr-iiiniteiy im_j - oving. It appears likely that the uank .of, England will receive the bulk of shipments arriving from South Africa, amounting

to £L,800,000 in tne next two weeks. There are also 550,000 sovereigns en route from New Zealand, and two hundred thousand, and possibly more, tom-

ng trom imenos Ayres. Consequently, people are beginning ;o think that a further rise in the bank ■ate mav.'be obviated but, while the

gilt-edged position is improving, other sections of the Stock Exchange, liotal.'y industrials, are still overshadowed by the Hatrv crash, and fears of further trouble have caused much liquidation, due partly to pressure by

tlie banks on 'brokers who had lent over-generously on Stock Exchange col-

lateral. Severe falls occurred in several groups, notably the Rothermere group of newspapers, what is known as Ale Horne Group, including the Carmelite Trust, and also in the Berry group.

An elaborate statement by Ltki Rothermere, widely ?,advertised in the newspapers throughout the country, caused a sharp railyj but this was not fully maintained.

Shipping shares were also affected, especially the Royal Mail Steam Packet and allied companies. The decline commenced in July, when differences arose between the chairman, Lord Ivylsant, and his brother, Viscount St. Davids. Rumours of a possible recontruetion have been denied, but uneasiness still exists. - WOOL.

Commenting on tne 'wool position, H. Dawson and Sons write: “Seldom in recent years has there been a more cautious and less confident spirit. Merino wool is at a reasonable basis, but trade is slow, and old stocks are burdening some ton-makers and merchants. Business is still being seriously retarded by this general lack of confidence. It is strange that cheap wool, instead of encouraging the demand, seems to be having the opposite effect. Keeness to keep the machinery employed, however, led to such drastic continuous reductions in the quotations for tops and yarns, that, instead of encouraging new business, they frightened off the buyer, who finds his cheap retail purchase of one week dear next week because of lower offers. Consequently, a dismal hand-to-mouth business and an utter loss of conftden e are the main features of the market. It is surprising how strongly the Continentals, particularly Alsace and Germany, have operated in merinoes, while some trade lias been extremely reserved. Morover, as usual, Bradford quotations for merino tops have been below the London parity. Consequently, while Continental buyers apparently have more faith in the position, the basis in the Home markets appears doubtful, and prices for tops and yarns are erratic. Any hope that survive are based on the fact that the actual consumer has been working on very light stocks for some time. and. with any improvement in the demand, healthy legitimate trading should quickly develop.” DAIRY PRODUCE.

The butter position continues favourable, and holders are taking an ontimistic view. Drought on the Continent has «n seriouslv curtailed production that reserve stocks are being depleted. Eirly shipments of butter from New Zealand are being diverted to Canada, while in Australia the season appears to be somewhat backward. In the c e condiiion« prices are expected to lumleti further. It remains, however, to be seen whether consumers will pay the higher retail nr.ee which an advance will necessitate.