FINANCE, COMMERCE AND MARKETS.

. NEW ZEALAND BUTTER. IN AMERICA, 'TAI.IFORXIAX CHOICF," _, (From Our Owu Correspondent.) i ' SAX KKAXCISCO, May 5. Mr. Reginald Hack, mnnager ot the Xjnion Steamship Company of New Zealand at San Francisco, told your correspondent, in reference to the appeal being made to the United Mates tlovernment by American butter producers for an increased tariff, that there were several considerations to be taken into account in regard to the volume of sale of imported lmltor in America. "California," he said, "has jusi had a. wonderful grass seuson, ;iifit it is not expected that much butler will lie imported this year on the Pacific Coast, at all events, to California itself. The I Xew Zealand butler industry ran look forward to California simply as a limited market, for I 'alifornitui demand on outside buttcr-prtului-iiig countries is naturally guided by the variableness oi Western pastoral conditions." Questioned regarding Eastern American conditions, Mr. Back replied: "The Xew York situation finds that part of the country in a better position for obtaining butter from Denmark, largely owing to the shorter haul. It fs a recognised fact that the I'nited States is short of butter in a. general way at all times, and, although, the butter output annually registers an increase in America, the demand is always ahead of increased supplies. The chiet" reason is that the American people iire becoming educated to the importance of butter as a factor in their daily diet, and statistics show that the average person in the country is eating more butter every year. "Unfortunately, owing to the butter importers bringing New Zealand butter into the United States during the winter months of the American calendar, the enterprising American butter operators are repacking the New Zealand product and actually shipping it out to various parts of the country as genuine Californian choicest butter. An injustice has been wrought upon New Zealand through the Californian butter handler not distinguishing the imported butter ac a product of New Zealand. Under these circumstances the public taste for New Zealand butter cannot be developed as it might be. There are only two ways of correcting this disadvantage under which >Xew Zealand dairymen have been labouring in America. Ono is for the Xew Zealand Government to start a small butter store in San Francisco, and the other step is to sit quietly until the shipments iucT (! materially from Xew Zealand and .jij-ortera specialise in Xew Zealand butter all the year round, the same as they are doing in the British Isles. "The steamship company carrying the Xew Zealand butter to San Francisco endeavoured to block the rebranding of the Xew Zealand butter, but when remonstrated with by an indignant observer, the representative of the American creamery concern ejaculated: 'Why, the public have no kick to make. This 13 as good as our best fresh butter.' This butter comes into America in -501b squares, and is then cut up into pound and half-pound squares, packed in a neat carton with the brand of the local American creamery upon the package, and by the wording printed on the carton the American consuming public are wrongly led to believe that it is American butter they are buying and eating."

Mr. Back stated that the wording of the brand on the imported butter was so cunningly arranged that the American operators just kept within the edge of the laws guarding against the perpetration of fraudulent practices iv the handling of foodstuffs.

Eespecting the threatened imposition of an increased tariff against Xew Zealand and other outside butter, Mr. Back said: "For the interest of Xew Zealanders it may be stated that there will not be a further increase in the American impost duty on imported butter, not that the country's rulers would not like to see such an addition to the present tariff, but they realise that they dare not countenance any such proceeding, as the cost of livin"in the country owing to the last Increases in the tariiTs is just as much as the people can stagger under. That, in a nutshell, is the whole story." iSTT , WOOL SLUMP. jy* —- ,&■ A MINUTE SUKPLUS. • 1 (From Our Own Correspondent.) LONDON, May 7. 'As if the fiscal unsettlement over silk and artificial silk, which is disguised cotton, were not enough we have the slump in wool. Naturally Sir Arthur Goldfinch has been asked about it and he says: "Wool prices have fallen about 40 per cent in four months without anything having happened sufficiently to account for it. Apparently buyers made a slight miscalculation as to the rate at which the wool would go into consumption. A stock of unsold wool, some part of which may reasonably be considered a surplus, appears to exist. Messrs. H. Dawson and Son place this stock at about 5 per cent of the world's production, enough to keep the world's mills going for two weeks. •On the strength of this minute surplus something like a panic in wool prices is now taking place. Nothing can be more likely than a shnrp upward reaction will follow, though no one can say whether it will come in ii few weks or in a few months. "That the world is accustoming itself more easily than some of us expected to reduced wool supplies is evident."

QUEENSLAND SUGAR CROP. SALE OF SURPLUS. The disposal of the expected surplus of rather more than 200,000 tons of this year's production of Queensland sugar would appear to have been almost wholly accomplished, if a statement in the "Produce Markets Review," of April 18, be correct. After a reference to the rather depressed state of the sugar market, the journal remarks "that there is, however, a certain amount of confidence that the value of raw sugar for the summer months is likely now to be more fitable would seem to be the case, judging by the important purchase by British refiners of 180,000 tons of Queensland centrifugals, presumably for delivery spread over a period. The price is not reported, but as 16/6 per c wt was paid for this sugar last December, when Cuban 96 degrees was worth 14/ per cwt and is now almost it is probable that a similar reduction has been accepted pi fe£ ;P£% i sugar mentioned,"

BUSINESS IN U.S.A. TRADE QUIET BUT STABLE. AUTOMOBILES BT'SY. Messrs. John Dunn and Son. writing on May 11. report :is follow: — The slowing down of business activity that was so noticeable in Marcii has continued during the past month, but has attained no considerable proportions and there seems to be little danger of any serious disturbance in the business world. In fact there are now some indications that this period of readjustment is drawing tn a close and that trade will eoniinue for some time on a stable basis and possibly with increasing volume. The automobile industry, which many thought was headed towards ii period of drastic curtailment, has. improved its position and production for March was surprisingly large, almost equalling that of the same month in 1 !>24. and very much larger than that of March. 1!I2:S. The lumber business is now active as is usual at this season, and the outlook seems very satisfactory. Large Stocks of Petrol. Overproduction of petroleum persists, and although tho demand is very large prices and earnings continue to sag. No improvement can be noted in the soft coal trade and most of the mines are running on ?hort time and many at an actual loss. In the anthracite n'elds conditions arc fairly good. The manufacturers of shoes are not very busy but some improvement has occurred of late, in fact the leather business in general is only very slowly recovering from the disastrous results of the decline in values during 1020 and 1021. Among the textile mills, those fabricating silk are quite well employed; the cotton mills only fairly so, although ■many in the Southern States producing, mostly heavy constructions are on full time: the woollen goods branch is at rather a low ebb owing to the waiting attitude assumed by most buyers who expect a readjustment of schedules to correspond to the collapse of raw wool values in all the markets of the world. Outlook For Wool. The ominous outlook in this industry is reflected in the markets for the securities of the American Woollen Co.. the common shares having fallen in value from 64 dollars to 30 dollars per share since January 1, 1925. and the preference shares having declined from 91! dollars to 75 dollars per share during the same period. This latter issue has paid dividends at the Tate of 7 per cent per annum continuously since 1898. Farming conditions are now better than at any time for several years. Sales of life insurance are very large, chain stores and department etorcs are doing well, and the large volume of business transacted ty the mail order houses shows that the agricultural communities are in a prosperous condition. With. all fundamental conditions thoroxighly sound, and with the consuming power of the whole country at a high level, it is safe to asstfme that business will continue to he reasonably active for some time to come.

ARTIFICIAL SILK. LATEST DEVELOPMENTS. Tn a review dealing with the method and production of artificial silk the National Bank of Commerce says:— "The story of the industry in the United State's has been one of expanding demand and expanding production, though depression in textiles generally, halted plans for a largely increased output last year. The industry is, nevertheless, extremely busy, and leading mills report their production booked up to July 1. Those most closely acquainted with the situation do not hesitate to assert that, so far, we may have seen only the initial stages in the production and application of the fibre. New avenues are continually opening for the disposal of the product. Though the knitting industry, in all its ramifications, is still the most important consumer of rayon yarns, this new textile has proved its worth to many other manufacturers previously sceptical in its regard. Artifieal silk mixed fabrics now figure prominently in the showings of leading cotton-goods mills and even in the offerings of woollen and worsted manufacturers. -Among broad silk and ribbon makers, rayon is becoming increasingly popular for supplementing raw silk supplies.

"Xoilher in this country nor in the world at large, is it yet indicated that there is a greater capacity for artificial silk production than there is power to absorb it. The very large capital outlay necessary as a mere preliminary to commercial operations, the technical difficulties in the way of effective production, and the necessity for manufacturing on a largo scale and of maintaining expensive experimental work in connection with the yarn mills, have conspired to limit the numbers engaged in the industry. Though comparable data of production costs in various countries arc not available, it is evident that with mass production the price ot rayon to the consumer may in time be considerably lowered and still leave the industry on a paying basis. Increase in the efficiency of labour as a result of longer experience with the fibre and improvement in the recovery of chemicals employed in the process will be important factors contributing to this end."

THE GOLD STANDARD. AMERICAX COMMENT. A '-MARVELLOUS ACHIEVEMENT." Writing on May 11, Messrs John Dunn and Son, of New York, state: The announcement that the Bank of England is to be licensed to export gold at its discretion is understood to mean that the pound sterling is to be on a gold basis from now on. So long as the rate remains above 4 dol. S3 cents shipments of gold from London to New York will not be necessary and until the rate reaches 4dol. i>o cents exports from this country to London will not be profitable. Fluctuations between those figures mar now be expected, but the range can be no broader. It is understood that the Currencies of Canada, Australia, and New Zealand are also to be on a gold basis immediately and that of South Africa by July i. The move is generally regarded 'as a marvellous achievement on the part of Great Britain, ina-de possible only by the acumen of her financiers and statesmen and by the willingness of her [people to bear the pnormoua burden of itaTatiaa thai, was required. ' ;'