COMMERCIAL SUMMARY

Daily Telegraph (Napier), Volume 58, Issue 222, 21 October 1929, Page 7

COMMERCIAL SUMMARY

Australian Press Association.

STOCK EXCHANGE DEPRESSED The Rise In Price Of Wool.

(Eeceived This Day, Noon). LONDON, Oct. 19. The Stock Exchange had a distinctIv depressiug week after a fairly cheerlail beginning. Hopes of improvement were shattered hy a fresh outhreak of liquidation which grew more intense daily. It came from all quarters, the result being that a wave of pessimism swept throughout the markets. Scarcely any section escaped, investments being depressed. Giltledgeds began the week with a show qf strength, stimulated. by the improving hionetary conditions, the Bank of England's acquisition of gold and the steadily advancing eterling dollar, hut these factoi's did not check the liquidation which set in and later- a downward movement of pviees , fully offset the slight advances eai'lier in the week, while Australian stocks dropped persistently all the week, In consequence of the elcctiong_ there were drops ranging from five shillings to £1 per cent. compared with Thursday (s cabTecT "q u ol'aWWffr^TT rr*th i r teen issues, loans of e-veiy State as well as the Commonwealth being affected. It should he pointed out, liowever, that the falls are not the result of rrfiy extensiye selling bnt with the niarkets depressed dealers are unwilling to take stock, exoept at lower levels. DROP IN PRICE OF TIN. One of the outstandiug events of the week has heen the drop in the price of tin. This fell Tuesday to £189 16s 3d, the lowest since August, 1923. Yesterday it fell further to £184 18s 9d, a new low record which makes a striking contrast with £226, the hxghest price last year, One of the most authoritative metal commentators says that the condition of the_ marliet is anomalous bscause th© statistical position, apavt f-rom the concentration ot abnormally heavy stocks in _ Bntain, favours a modei'atelv optimistic view dnstead of 'the undiluted pessimism which led to wide liquidation and o-eneral distraction this week. lhere are rumours that some producers in the East are witholding the output from the smelters ratlior than accept the present prices. THE WOOL POSITION. Tlie Bradford wool trade is still hamperedV the prolongation of tbe wages dispute but a defimte settlenient is expected within a fortnight Meantime there has heen increased aetivity in Merino tops, which have shown a general increase of fourpence withm the last ten days. ((rrl • The Yorkshire Post pays, Ihis rapid upward movement evidence srthe extent to which the spmners failed to cover their 9-equirements for the lmmediate future. The recent advances m tops have already affected the wool saies in Australia, hut a. more sober feeling is now noticeable in Bradfoid, which is playing for time to see if response comes from the cloth end of the trade." . 1 The withdrawal ef so much wool from the first half of the Australian selling season is not having the dehned cffect as many manufacturers refused to follow the rusb whic-h sent up the prices. If tlie growers do carry forward one-third of the offermg to the second half of the season it will I preiudice the ownea-s m the New Year. This week's advances m tops oniy strengthened the determmation to go c-autiously ratlier than bxiy xn fear of higher prices in the New Year. Immediate requirements have heen _ covered and the consumers m Yorkshire are likely to wait ratlier than specnlate and let the growers have the. nslc ot carrying supph'es of raw materials.