BUTTER AND WOOL FACE FIRM FUTURE.

Shannon News, 15 September 1925, Page 4

BUTTER AND WOOL FACE FIRM FUTURE.

MONEY MARKET NOW MORE BUOYANT, (Received Sunday 11.5 p.m.) LONDON, September 12. Butter prices continue to harden and traders generally expect' the firmness to be maintained, for some time, as supplies will moderate until the new season’s Australian and New Zealand begin to arrive, and at the moment strikes are causing considerable doubt about when that will be. Supplies from other sources are rapidly diminishing the cold w-eather in Denmark having already reduced production. Germany’s production is also declining steadily and Germany :is buying largely of Dutch and Dan- > ish, though these purchases .will probably cease at the end of the month, ' when the German import duty of 11/per cwt. comes into operation. French Uniforms. The opening of the wool sales next Tuesday is awaited with even greater interest than usual, and in view of the large quantity to be offered, genk eral anticipation seems to be that prices will be firm. "The Economist’s” well-informed correspondent says the big weight to be catalogued has frightened no one and a very sound opening is expected. The Continent is undoubtedly in buying mood and it looks as if France is going to force the pace. This is all to the good of Australian growers, but what really matters most to the home trade is whether fabrics can be sold on a basis of the cost of wool bought at to-day’s values. However, expectations favour a good demand for raw material. Last sale’s prices should be easily forthcoming. The manufacturing position is generally better than it was. It is just a question whether big-weight crossbreds can be lifted at top notch July prices, but everything seems to indicate' a very heavy demand for wool. Another correspondent points out that the French demand is mainly for military purposes in North Africa and should hopes of a vital blow being soon struck against the Riffs be realised, the financial position of Franco will cause a speedy cessation of woolbuying lor the a:wiy. Should France suddenly drop out of the market, wool values will be just as importantly influenced. Much apprehension has been expressed in heavy w r oollen trade regarding new Australian tariff. According to a Dewsbury correspondent, the tariff will seriously handicap trade in that district and its effects are already being felt. The agent for an Anstralian importing firm telegraphed a local firm cancelling orders for two lots of cloth which w'ere practically ready for delivery and the local firm felt obliged to accept the cancellations, in order not to prejudice future transactions. Losses were also sustained by other firms, : owing to similar cancellations. Investments Brighten Somewhat. After a period of dullness al- ■ most approaching depression the' gilt-edged section of the Stock tendency yesterday, thanks chiefly to the abundant supply of cheap money. Previously, monetary conditions had been unfavourable and there was a general, though slight, decline in all British Government stocks. Yesterday. however, there was a revival of public interest, with considerabe buying and prices showed a general re» covery. Following .the lead of the 3i per cent, conversion loan, which advanced three- eighths, the tone is now distinctively hopeful, there being an impression that with the close of the holiday season, business will improve. Home rails and industrials generally have been adversely affected by inflammatory speeches at the Trades Union Congress, also by the Board of Trade returns, which reflect the existing industrial depression and tend to check any feeling of optimism regarding the home trade outlook, but rubber shares continue firm and the fortnightly settlement therein was a very heavy one. In the foreign exchange markets, there have been considerable dealings in dollars at rather weaker prices, owing to dearer money in New York, but an outstanding feature has been the sharp recovery of the Italian lira following the Government’s drastic measures to protect it from speculation influences, both at home and abroad. _ .