BAROMETER OF TRADE

Taranaki Daily News, 23 November 1926, Page 7

BAROMETER OF TRADE

STOCK EXCHANGE FLAT BUTTER TRADE STAGNANT THE POSITION IN ENGLAND By Telegraph—Press Assn.—Copyright. London, Nov. 21. The Stock Exchange is passing through an unsatisfactory period for, though the approaching end of the coal strike has had a good effect, this has been neutralised by heavy selling orders from Paris. As the result of the substantial improvement in the value of the franc large blocks of international securities have been thrown on the market, causing flatness in many sections, but gilt-edged securities remain steady, as fears of a rise in the bank rate have passed. Colonial stocks are steady and Mr. Bruce's statement has had a reassuring effect, although prices have not yet responded beyond a fractional increase here and there. OUTLOOK FOR WOOL TRADE. Prospects for the forthcoming wool sales are being eagerly discussed rather pessimistically. The views prevailing a fortnight ago have been improved by the prospects of a resumption of the eoal mines and good reports of the sales in New Zealand, but traders generally would not be surprised to • see a slight fall in values on Tuesday. In their annual review IL Dawson and Co. point out that the principal factors to be considered during the coming season are that it opens with a fairly clean start as regards supplies in the primary markets, stocks in the consuming centres are not heavy, and there is a good undertone of general confidence in the manufacturing districts of Europe, excepting England, where industrial disputes have caused depression. France’s ability to adjust her finance is a factor-that will seriously affect the position, of marines and the effects of the stabilisation of the franc will have to be gauged carefully. The great desideratum in the textile trade is a period of stable values with minimum fluctuation. There is evidence all over the world of the call for manufactured goods at reasonable values. EFFECT OF COAL STRIKE. The butter trade continues most depressed. One of the biggest importers says he cannot recall such stagnation in November, which is usually a busy month. He says that undoubtedly the industrial depression due to the coal strike is largely responsible for the lack of demand, but retailers seem to be keeping off colonial butter in the hope that there will be a drastic reduction in prices. He adds that they are steadily refusing to buy New Zealand butter at the control prices, and the sales of new arrivals have been almost negligible. There have certainly been fair sales of new Australian butters and stored New Zealand at about 140 s, at. which price it >e impossible to make a small profit at the new retail price,of Is 5d per pound. Finally the importer says: "There is no diminution of the huge stored stocks, for as the old New Zealand butter is taken out the newly arrived goes in. Indeed at present cool storage proprietors seem to be the only people making any money out of butter.” Business in dried fruits is limited in scale, and the demand is disappointing. The majority of small retailers have apparently not yet filled their Christmas requirements. These will have io be filled before long, so it is reasonable to hope for an early improvement in the demand. Australian fruit is certainly ■■ being well advertised. One sees the. slogan: "Buy Australian currants, sultanas and .raisins” everywhere in the newspapers, ion hoardings, at railway stations and on carte. Australia’s advertisements have now invaded the fields alongside the principal railway lines.