Markets and Money

Sun (Auckland), Volume I, Issue 242, 3 January 1928, Page 7

Markets and Money

A Review for Business Men

BRITISH FUNDS BOOK LONDON STOCK EXCHANGE REVIEW OF TRADE DOMINION STOCKS RISE By Cable. —Press Association. — Copyright. ; LONDON, Sunday. The Stock Exchange wound up the year in great style, with quite a boom j in British funds, some of which closed I

the year. Business had been somewhat restricted since the resumption on Wednesday, as is usual at the end of the year, but there was firmness all round. Just before the House closed the announcement was made that the list of fresh applications for the new Treasury 5 per cent, bonds had been closed two days before the advertised time. This was evidence that the subscriptions had been very heavy, and had the effect of causing all the funds to advance. This news led to a revival of

bank rate, and cheaper money. Brok- ; ers and jobbers separated for the New ' Year holiday in the happiest frame of j mind. Dominion stocks shared the firmness, i and it is satisfactory to see the recent New South Wales loan scrip quoted at about l-16th premium. This is a good reply to the pessimists, who have been uttering nasty criticisms about the State and its finances, because the underwriters had to take 62 per cent, of this loan. Some measure of the upward tendency on the Stock Exchange during the year may be gathered from the fact that the 365 representative securities selected by the Banker’s Magazine appreciated by just over 4 per cent. BRADFORD SUPPLIES Discussing wool prospects, the “Yorkshire Observer” says: “With smaller supplies from Australia and no compensation elsewhere, no one expects any drastic fall in prices. For. assuming that a slight reduction may be possible, competition, which would thereby be encouraged, would prevent it proceeding far. The wish for cheaper wool is general, but topmakers are not prepared to act upon the assumption that it will be obtained. They are not deviating from the policy of being on the safe side by basing their quotations upon the actual cost of the raw material. “It is reported on reliable authority that the German and French stocks of raw material are only normal, and in the circumstances it is only reasonable to suppose that German and French competition will continue to be considerable, and will prevent any undue sagging of values. It is reported that the United States importers are seriously considering replenishment by foreign wools, and they may be keener competitors for the raw material than they have been in the first half of the season. We cannot expect Japan and Russia to drop out entirely, and on the whole Bradford will have its work cut out to get in on a favourite level.” OPTIMISTIC VIEW An optimistic view of British trade and industry is taken by Lord Gainford, president of the Federation of British Industries. He says: “Taken as a whole, British industry looks forward to 1928 with less misgiving than in any year since the war. It is now generally recognised that there has been in recent years a great increase in our internal trade, but that, comparatively speaking, our export trade has been'depressed. Fortunately there are fairly definite grounds for hope I that the next 12 months will see a j recrudescence of our overseas coin- < merce. The period of falling prices is at an end, and so is the period of the artificial scarcity of gold, which gave rise to it. For the first time since the boom of 1910 gold has flowed into the Bank of England in response to natural exchange movements. Moreover, no less than half the world’s tonnage of shipping now under construction is being built round the shores of the British Isles, which is most welcome news from the point of view of the national prestige. “I find grounds for optimism in the marked change in the atmosphere of relations between the employers and the employed. If only we can retain and develop this spirit of sympathy and co-operation there need be little fear for the future.” —A. and N.Z. . CANADA EXPECTS RECORD TRADE OF NEXT YEAR

_ By Cable. —Press Association. — Copyright. VANCOUVER, Saturday. An epitome of the views of all leaders in business life in Vancouver is that the new year should be in many respects the greatest in the history of British Columbia and Canada. Tremendous growth of foreign trade is foreseen, particularly with Australia and New Zealand and the Orient. The Harbour Board is preparing a big building programme to cope with the increasing demands. —A. and N.Z. BUTTER AND CHEESE LONDON MARKETS PRICES The following cablegram has been received by Mr. C. Pawson Smith from the Anglo-Continental Produce Co., Ltd., dated London, December 31: “Butter, 160 s to 1645; market temporarily firmer owing to Danish and Continental butter being delayed through snowstorms; 90s to 945. BRITISH REVENUE AN INCREASE REVEALED By Cable. —Press Association. — Copyright. LONDON, Sunday. The revenue of Britain for the past nine months was £496,614,312, an increase of £13,593,749, compared with the same period last year. The chief increases were: Death duties, £8,460,000; customs, £4,495,000; excise, £3,771,000; postal. £2,400,000. The super-ta* decreased by £6,160,000, and income tav by £4,953,000. The expenditure was £642.565,701, an increase of £17,415,092. The sinking fund was increased by over £24,000,000. —A. and N.Z. | BEET SUGAR PRODUCTION | By Caote.—Press Association. — Copyright. LONDON, Saturday. Herr Licht, the German sugar authority, in his Madgeburg circular, says the beet sugar production for two months amounted to 1,356,817 tons. Herr Licht ; estimates that the total yield will be j 8,128,000 tons.—A. and N.Z.

MORE ENCOURAGING BRITISH TRADE OUTLOOK British Wireless—Press Assn. — C-DpyrsQht RUGBY, Saturday. A more encouraging note is struck in official quarters regarding; the trase outlook for Great Britain than has been the case for some time past. The reports available for guidance indicate that, following the disastrous period in 1926. when prolonged Industrial troubles caused a severe setback to the trade of the country*, and the few months of stagnation which were experienced this year after the accumulation of old orders had been worked off. signs of improvement became apparent about last August. The volume of exports of British produce and manufactures in the ye*%r 1913 was the culmination of one of the greatest periods of trade expansion in the ecomonic history of the country, yet the volume for the first nine months of 1927 was 77.4 per cent, of that period in 1913. The faling-off in volume needs also to be qualified by ihe consideration that any given quantity of textile goods is now exchanged for more of other goods than before the war. cotton, wool, silk and flax having all advanced notably in price as compared with rawmaterials in general.—A. and X.Z.

HIGHLY SUCCESSFUL YEAR NATIONAL MUTAL LITE A cable message received by Mr. F. W. Nicholson. manager for New Zealand of the Xational Mutual Life Association. from the head office in Melbourne, states that the 58th annual meeting of members was held on December 21. The new business for tfte year was very satisfactory, 16.850 new policies having been issued for £8.234.713—an increase of £570.80* over the previous year’s total. The income for the year £4.378.798 —an increase of £298.171. The very large amount of £2,123,697 was added to the assurance fund, which now stands at £26.706.153. The amount payable to policy-holders or their representatives during the year was £1.882,250. The rate of interest earned on the mean funds was £5 30s 9d per cent. The ratio of expenses continues to decrease. Members may expect to receive their bonus certificates on or before March 1. FROZEN MEAT MAMtET By Cable.—Press Association. — Copyright. LONDON, Saturday. Sheep.—Canterbury, light, t>id: North Island, light, 6jd. medium, 5 7-Sd: New Zealand ewes. sd; Australian, firsts, ojd, seconds, 5 l-Bd. Lambs.—New Zealand. none offering. Australian seconds and Victorian, 7 3 -8d: other States, 7d: Argentine, firsts, light 7 5-Sd, medium, 7£d. Chilled Beef.—Argentine, fores. 3 7-sd, hinds sid; other meats unchanged. COTTON, RUBBER. HEMP, ETC. (Last week’s prices in parentheses ) Cotton. January delivery, 10.54 d (10.40 d) a lb. Rubber.—Para, 17d (I7d) a lb: plantation and smoked, 20d (20d). Jute. December-January shipment, £3l 2s 6d (£3O 15s) a ton. Hemp.—December-February shipment, £33 10s (£33 10s) a ton. Copra. December-January shipment, £27 7s 6d (£27 ss) a ton Linseed Oil. — £27 15s (£2B ss) a ton. Turpentine.—39s (39s> a cwt. HIDES The market is strong. Dry salted Queensland and New South Walee, all weights. lTd: wet salted. 12fd; Victorian abattoirs, 12|d. —A. and N.Z. UNITED STATES TRADE By Cable. —Press Association — Copyright. WASHINGTON. "Sunday. Canada in the first nine month* of 1927 displaced the United Kingdom for the first time as America’s chief export market. and continued as the leading exporter into the United States. Canada took goods to the value of £126,000,000 or IS per cent. of the total United States export. Australia's purchases of American goods increased bv £370,000, or 11 per cent. —A. and N.Z. SOVIET ISSUES LOAN By Cable. —Press Association. — Copyright. MOSCOW, Sunday. The Soviet is issuing a three yeaxs* internal loan of £10,000.000 to meet the needs of rural finance. —A. and N.Z.-Sun. CHICAGO WHEAT By Cable. — Press Association. — Copyright. CHICAGO, Sunday. Wheat—December, 1 dollar 26J cents a bushel: Match. 1 dollar 29£ cents; May, 1 dollar 31i cents.—A. and N.Z. MINE TO CEASE WORK By Cable.—Press Association. — Copyright. BRISBANE, Saturday. A statement has been issued by the general manager of the Mount Morgan • Company, that all active operations at ; the mine will cease at the end of the [year. All mining and ore breaking has [j already ceased.—A. and N.Z.