British Trade Activity Continue?

Sun (Auckland), Volume I, Issue 135, 29 August 1927, Page 9

British Trade Activity Continue?

STOCK EXCHANGE LIVELY BOOM IN ART SILK By Cable. — Press* Association.—Copyrlgm Reed. 8.5 a.m. LONDON, Sunday. Activity in industrial shares has been a feature of the Stock Exchange throughout August, and instead of tli«* stagnation which usually marks this holiday month, there has been considerable liveliness in almost all departments of the miscellaneous market, with prices higher all round. One of the most active sections has been artificial silk shares, which hove experienced what can almost be described as a boom; and this received fresh impetus yesterday when it was announced that Courtaulds, Limited, which has a capital of £ 20,000,000, had decided to exercise an option to work the Lilienfeld process for manufacturing artificial silk.- This is taken as an indication of a further increase in the production of artificial silks, which has already begun to assume important dimensions. The development of this industry will be watched with interest, in view of the extent to which artificial silk is coming into competition with wool. AUSTRALIA’S NEW LOAN Commenting on Australia’s New York loan, the newspaper “Statist.” says the ensuing exchange operations should prove a welcome source of strength for sterling during difficult months lying ahead. “Evidently borrowing in New York is to become a permanent feature of Australian finance. This development should be genuinely welcomed.” WOOL OUTLOOK GOOD Discussing the wool outlook, the Bradford correspondent of “The Economist” says many close observers of trade conditions predict firm to hardening prices during the next three months, but they do not appear to be too sure as to what will happen later. However, there is general confidence in the immediate future of values. Topmakers are adopting a very firm attitude in the discussion of new business. All qualities of tops are well ahead of late rates, but it is difficult to induce spinners to pay more money, except for small lots urgently required. Another wool expert writes: —“The maintenance of prices for Australian wool in the near future appears fairly well assured. There does not seem quite the same optimistic tone in France, but all reports from Germany are to the effect that the machinery is well employed. The only immediate indication in the Home trade of anything in the way of an advance in raw material values is the smallness of the stocks. Machinery consumption might Ibe very much better.” BUTTER’S HARDENING TENDENCY The butter position appears very sound, and the opinion generally held is that prices will Harden. At present there is not much activity in colonial butter, but the undertone is strong, as there is not much Australian butter available here, and the stored stocks of New Zealand and other sorts are moderate. Additional strength is given to the position by the receipt of cables that large shipments from Australia will not be made till late in October or November. As Continental stocks are being greatly reduced, largely through German buying, and Argentine supplies are restricted owing to a drought, there may be a shortage of butter before the new Australian stocks arrive. FRUIT TRADE The dried fruit trade has been showing an improvement, and stocks of Australian currants and lexias are practically cleared. Sultanas are also meeting with a better demand, especially for the cheaper grades. This is satisfactory, as stocks of this sort are plentiful. Oranges have declined materially in value this week owing to abnormal supplies from South Africa. Further heavy supplies are expected shortly and prices are likely to go lower, so perhaps it is as well that the prospective arrival of Australian oranges amount to only a few hundred boxes.—A. and N.Z.