BRITISH TRADE

Hokitika Guardian, 19 November 1930, Page 2

BRITISH TRADE

FORTNIGHTLY REVIEW. AUSTRALIAN ISSUES SHOW RECOVERY. PROSPECTS IMPROVE FOR FINE WOOL, (United Press Association—By Electric Telegraph.—Copyright.) LONDON, November 16. The tone of the Stock Exchange lias been somewhat hesitant under a variety or more or less adverse factors, notably the more stringent money conditions, and the- flow of gold to France. Ini during tlnw last, day or two these causes of depression have become less prominent, and gilt-edged stocks have hardened again. A most satisfactory feature has been the steady appreciation of values for Australian Government securities, which the newspapers unanimously and justly attribute to to the firm attitude taken by Air fecul]jn and Mr Lyons regarding the caucus’s subversive proposals. There has been a fair amount of buying in Commonwealth stocks, largely by professional operators, for the average investor has not recovered from the i'll cl a shock administered by tbe caucus’s action .

Discussing this subject qf investing in Australian stocks, tV< well-known, financial writer, Arthur Kiddy, says in the “Spectator’’: “Although the average investor has confidently embarked his capital in Australian loans lor many years, the fact remains that many important financial institutions for some time past have refrained from investigating Australian securities, and some trustees have declined to include them in their list of securities held on trust. This reserve lias certainly not been justified by any failure on tbe part of Australia, to fulfil lmr obligations, but reserve has been justified in tbe sense that tbe fall of Australian stocks has proceeded to a length which could scarcely have been expected in tbe stocks oi’ our overseas dominions, and this reserve also has been justified by the deterioration in economic conditions in Australia over a long period.”

Wheat Shipments. ' That Russian shipments are largely responsible for the unsatisfactory state of the wheat market will be realised from the following figures for tlie week ended Wednesday: Exports from South Russian ports totalled 994,000 quarters, tlie largest for any week since 1910. In addition 79(000 quarters were exported fr'om Danube" and Bulgarian ports, making a total from Russian and Danube ports of 1,023,000 quarters, compared with'-’-'154,000 "for the corresponding week of 1929. Wool. Wool prospects are encouraging us far as merinos are concerned, and the Bradford market is inclined to be optimistic. According to the Yorkshire Observer’’ encouraging reports emanate from various we'll- inf oi mod quarters regarding the position in the merino section of the industry. One estimate, based upon an exhaustive survey of the position, leads to the conclusion thht activity in merinos all round, including top-making, spinning and manufacturing, is 10 per cent better than it was three weeks ago. There seems to be no reason to question the- fact that a decided improvement in the output of merino tops, consequent upon extending the demand for botany yarns and fabrics has recently occurred.

The writer continues: “The wool industry looks like coming into its own again soon. Such an expression of optimism at a time when the palpable reasons for depression of optimism at a time when the palpable reasons for depression have been only too evident f°i so long may seem unduly ventureI some, but the question may reasonably he asked if when combed wool of the finest type costs only about 24d or 25d a pound, and semi-fully manufactured goods are correspondingly cheap, the foundations' for an increased demand and more extensive industrial activity do not exist, when are they going to do so?” Dairy Produce. Although the butter trade at the moment is decidedly slow, there lias been a good demand for the past four weeks, stimulated greatly by the low retail prices. This has resulted in a considerable reduction of cold store stocks, which are now estimated at about half what they were fourteen weeks ago. Against this reduction must be put large imports from Australia, New Zealand and Argentina, and the prospects of supplies from these sources being maintained on a large scale for some time to come. Imports durincr October from all countries amounted to 515.490 cwts, compared with 377.695 in October 1929. Tt is interesting to note, as one Da dine firm of importers points out, that although this October’s imports exceeded last October’s by 36.4 per cent, their value was lower by 1.9 per cent, a striking illustration of the enormous fall in values. Eggs. Importers of Australian eggs have not succeeded in maintaining prices as they hoped to do, and the host figure obtainable for the largest is 16s per long hundred, against 17s a fortnight ago. This is mainly due to the very heavy supplies, blit the difficulties of the situation have been increased h.v the arrival of considerable quantities of Victorian sold forward at ?. price equal

to about 13s 6d landed. In the face of competition from these cheap eggs, importers have had no option but to lower the prices for other States.