NEW YEAR TRADE.

Taranaki Daily News, 9 January 1922, Page 5

NEW YEAR TRADE.

BETTER MORE CHEERFUL. A KEENER DEMAND. GOOD WOOL TRADE. By Telegraph.—Press Assn.—Copyright. Received Jan. 9, 1.6 a.m. London, Jan. 7. Business on the Stock Exchange during the first week of the new year has been somewhat disappointing, various factors contributing to dullness, notably some fairly large selling orders, rumors of a general election, considerable profit taking, and last, but not least, new issues by South Australia, Chile, the Bristol Corporation, Buenos Ayres, and the Western Railway, aggregating nearly £-8,000,000. All these were oversubscribed, Bristol’s £1,000,000 at 5$ per cent, at ninety-six being subscribed xlhirteenfold, also in two hours; Chile’s £1,657,000 at 71 at ninety-five, also in. two hours. This heavy subscription diverted money from existing stocks and caused I flatness for British gilt-edgeds, especially as it was known in the street that fresh issues were coming. The fact that Bristol was able to secure its loan a half per cent, cheaper than South Australia caused some comment in colonial circles. The explanation is simple. In the first place corporation stocks are always popular with the investing public, who also like their security near at hand. Secondly, Bristol is a thriving community, with a population of 377,000, while its indebtedness is a little over £9,000,000. Easy conditions continue -in the money market. Yesterday’s Treasury bills were allotted at a fraction under 65s per cent., the lowest on record, reviving hope of a reduction in the bank rate before long. DEMAND FOR BUTTER. The butter market is more cheerful. The present low retail prices are stimulating the demand, and large quantities are going into consuumption. New Zealand butter is- retailing at sixteen pence per pound, and good Australian at fourteen pence, occasionally at a shilling. Traders are hopeful that now the public have got back to butter that consumption will grow and prices recover somewhat. If only the incubus of the Government's stocks and the fear of their being thrown on the market can be removed the position will be hopeful. The public have got tired of margarine, and only the poorest will buy it when good butter can be procured at about sixteen to eighteen pence. The margarine trade is already feeling the effect of the competition, and consumption is considerably below normal, despite a reduction in prices. Consequently there is great weakness in the market for all descriptions of oil-bear-ing material, notably copra.

The year opens favorably for the wool trade, and the outlook is brighter than at any time in 19*21. There is a strong demand in all the world’s wool markets, and the general opinion, both in Bradford and London, is that the sales on Tuesday next will open with a 10 per cent, advance over the December closing rates. There is still a great scarcity of fine tops, the prod lietion of which is barely sufficient to meet present requirements, and topmakers are very strong in their ideas of prices for sixty-four’s. The demand for low and medium crossbred tops is also improving, and their advance at the Timaru sales has been a welcome surprise to the market, giving rise to the hope that crossbred values may soon reach their proper level compared with merinos. SHIPPING OUTLOOK. Another satisfactory feature is an improvement in | the heavy woollen trade. One Dewsbury firm has commenced running its machinery night and day after a lapse of many months. Other mills are able to give their employees more work; they are not receiving orders for large quantities, but repeat orders are coming in fairly wen from the colonies and the Continent.

The severity of the general trade depression in 1921 is illustrated by the number of bankruptcies, which in the United Kingdom totalled 3495, compared with 1594 in the previous year and 753 in 1919.

Messrs. Turner, Davidson and Company write: “The depression in shipping values has been accentuated by the throwing into the market of various fleets of stearoei-s and forced sales of new steamers, for which owners have been unable to complete. There is no guarantee that more fleets, especially those purchased at high prices, may not be thrown on the market. Owners of pre-war boats cannot hope to do more than make ends meet until trade improves sufficiently to induce a large proportion of <the laid up tonnage to resuWKvhusiness. The prospects for ship-

bußßng are worse than ever. Tramp tonnage cannot be built under twelve pounds per ton, which is prohibitive. In the absence of orders it is only a question of timB**before a great many yards must close.” —Aus.-N.Z. Cable Assn.