BRITISH TRADE

Hokitika Guardian, 24 September 1930, Page 2

BRITISH TRADE

FOR TNIG HTLY REVIEW

AUSTRALIAN POSITION CREATES INTEREST. LONDON, September 20. Australia’s financial position continues to receive much attention from the newspapers, and writers generally, while recognising the seriousness of the situation, are inclined to take a somewhat more hopeful view of the 'future. Thus a financial writer in the ‘'Spectator,” after pointing out that the causes of financial depression in this country and Australia are very similar, says: “The only hope for Australia and Great Britain is to face them manfully. The level to which Australian Government stocks have fallen is causing some anxiety, but, as far as can be ascertained, there is no disposition on the part of large holders to part with their stocks at the present prices. The only sellers appear to be the small holders, who, as mentioned a fortnight ago, have taken alarm at sdtrie extremist talk iii Australia. The present certainly sedits U good Opportunity for investment iii Australian stocks, for all c'f them show ah' excellent yield. Thus Queensland 5 per edits 1040-60, at their present price, £B4 10s give a yield, allowing for redemption, of 6.15 per cent. New South Wales 5 per cents, 1G35-55, give a similar yield of 6.375 per cent. Commonwealth, South Australian and Western Australia 5 per cents yield 5.9 per cent.”

STOCK EXCHANGE. The Stock Exchange generally lias relapsed into a condition of lifelessness, j which is very disappointing after the briskness which characterised the beginning of the month. Business is on the smallest scale, the public showing no interest and professional buyers marking time. Gilt-edgeds have been fairly steady, with the exception of Australians, but foreign bonds have been weak, the Germans leading the decline as a natural sequence of the election results. Industrials have been quieter than 'for some weeks past, and mines generally have been lower. WOOL TRADE. The course of the London wool sales is regarded aV somewhat better than was expected. The firmness of super merinos is looked upon as encouraging. A Bradford correspondent, commenting on the Australian and London sales, says that the main fact emerging from them is that raw material still is being obtained at prices which should eventually be conductive to extensive re-popu-larising of Wool commodities. On the whole wool still is moderately priced. Nothing that has happened to the raw material department so far offers the slightest pretext for any stiffening oF retail prices, but rather the contrary. It is justifiably argued that a more active demand from the cloth end of

the trade i.a badly needed. There has been some improvement in this respect recently, but further progress is necessary and is anxiously awaited. The main fact to-day is that cheap wool continues to pass into the possession ol the trade, and is generally making its appearance in the form of cloths produced at prices which should eventually bring about in the retail section a state of affairs conductive to a much more active demand l'or wool manufactures. RUSSIAN .WHEAT. International wheat markets continue to ha dominated by the dumping of Russian wheat. Jt is known that since September 1 eighty-five .steamers aggregating 013,000 tens have been chartered to carry grain 'from Russian black Sea ports to Mediterranean, Continental, British and Scandinavian ports. There also are a number oi' chatters of which particulars have not been disclosed, and it is believed that 120 ships are now under charter for early shipment, so it is evident that intensive Russian shipments must continue for some time. From the beginning of the year to September 17 the Russian exports totalled 6,853,00!) quarters compared with nil last year. “The London Grain Reporter” says: “•Whether this movement constitutes a threat to Canadian, Australian and Argentine exporters may be debatable, but It is significant that all three markets are chartering with extreme caution in contrast to the Russian shippers.” Another newspaper writes that situation created by Russia is serious, I not only from the viewpoint of growers in other countries, hut also in I regard to world trade depression. 1 Wholesale values are being depressed |j just when the world so urgently needs ' an improvement in prices, which alone can presage industrial recovery.