PAYING FOR COAL STRIKE

New Zealand Times, Volume LIII, Issue 12622, 6 December 1926, Page 7

PAYING FOR COAL STRIKE

BRITAIN NOW FEELS RELIEF FROM INDUSTRIAL PARALYSIS ' SHOWN ON STOCK EXCHANGE MARKETS FOR RAW MATERIALS ARE GROWING BETTER The effect of the coal strike is now being seen in the reports of industrial companies, and this has been reflected on the London Stock Exchange. Wool sales show good competition, and prices are considered likely to remain up. The butter position also grows better.

By Telegraph.—PrcSs A^sn.—Copyright. Australian and N.Z. Cable Association. (Received December 5, 5.5 p.m.) LONDON, December 4. The three weeks preceding Christmas are usually a dull time on the Stock Exchange, nnd this year is unlikely to prove an exception, especially as there are several adverse factors disturbing markets. The chief is the Chinese situation, which has caused all Chinese bonds to fall heavily. Others are the fluctuations of the franc, the fall in the price of rubber, and even the conclusion of the coal strike has not had tho effect that was expected. Commenting on the subject, a wellinformed financial writer says: “It is not altogether

strange that the settlement of the coal dispute should have been followed, not by a revival, but by a rather < general reaction in most sections of the Stock Exchange. As is often the case many speculators bought on the strength of

Miners* Leader, n prospective agreement and have taken advantage of its realisation by securing whatever profits accrued. Moreover, the cost of the dispute previously overlooked, is now being daily reflected in the reports of industrial companies while fears are entertained that it may be necessary either to increase the income tax or to place extra duties on luxury goods. HAVE EMERGED WELL “The present reaction is made to appear less surprising when it is in mind that the trend of prices during the most costly dispute in the country’s history has throughout been remarkably steady." The writer proceeds to compare the current prices of twenty-seven representative stocks with those ruling on April 30th. Comparison shows that the only weak section among some industriai securities has been textiles which have been affected by independent factors. Investors therefore have to congratulate themselves on the manner in which markets have emerged from the strike. Another financial expert says:

“While it remains to be seen whether there will be a revival of cheerfulness after tho final settlement is concluded at all events there is nothing in the present stagnation of markets as a whole to indicate any kind of adverse anticipation of the prospects for 1927.” London wool sales are proceeding excellently. Competition is good, th* Home trade is buying freely and Germany is operating actively. Even France, which is handicapped by exchange, is taking a small quantity. A Bradford correspondent writes: “Feeling here is decidedly hopeful. Operations are showing signs of expansion, and generally there are sound grounds for the optimistic tone and more cheerful atmosphere which are noticeable on the Exchange. Events are considered to be moving in the right direction. The fact cannot bo overlooked that there is sufficient competition to prevent any weakening in the raw material values of Australia, New Zealand and London."

BUTTER IS BETTER The butter position coptinuec to improve, thanks largely to the resumption of work in the coal mines. Buying has increased greatly in industrial centres, and retailers are also filling their needs for the Christmas markets, consequently there has been a satisfactory reduction in stored stocks and prospects seem favourable for the continuance of strong markets. The news of drought in New South Wales and Queensland is also having considerable effect, and some buyers are reported to be operating in anticipation of short supplies early in 1927. Multiple shops are raising the retail price of colonial from Is 5d per lb to Is 7d per lb next week, hut it is not expected that the advance will have anv effect on consumption. In non-ferrous metals markets, as on the Stock Exchange, th© advent of peace in the coal industry has not had the favourable effect which might have been expected. One metal broker writes: “The happv change in the cool situation has chanced to coincide with very subdued reports of trade on tho Continent, and buying here on a general scale is unlikely till work can be resumed without restriction. Therefore, we must be prepared for a quiet time this side of Christmas."