TRADE REVIEW

Ashburton Guardian, Volume 50, Issue 150, 7 April 1930, Page 5

TRADE REVIEW

THE WOOL MARKET. A HARDENING OF VALUES. BLENDED BUTTER CAMPAIGN. (United Press Association—'Copyright.) (Received This Day, 8.5 a.m.j LONDON, April 5. Those optimists who anticipated an early reduction of the Bank rate to 3 per cent—some even expected it last Thursday—have been disappointed, for yesterday there was a sharp advance of Bs. per cent in the rate at which Treasury bills were allotted, consequently the monetary outlook is regarded witn less confidence. The immediate result was a decline in gilt-edged securities, which had previously been showing an easier tendency under the combined influences of the approaching Easter holidays and nervousness regarding the Budget. The knowledge that the Chancellor of the Exchequer will have to meet a deficit of considerably over £40,000,000 is naturally causing anxiety, Another cause of the weakness of giltedged securities has been profit-taking by speculators, who bought at the commencement of the upward movement. In this position it is satisfactory that Australian stocks maintain their position, and have been only slightly affected by the recent unfavourable financial developments. But while gilt-edgeds have been unsatisfactory there has been a fair amount of activity in industrials, which to some extent is a reaction of the

revival on Wall Street, where there has been a considerable increase in speculation. According to statistics, it is estimated that Wall Street stocks have on the average recovered fully •50 per cent, .of the depreciation which occurred in November, but whether prices will continue to advance seems doubtful in view of the weakness of the technical position and the general depression of trade. At the moment the tendency in New York is yery irregular, though business continues to be exceptionally heavy. The London wool sales are proceeding satisfactorily, and when they close, on Wednesday, it is probable that many descriptions will show an advance of 5 per cent oyer opening rates. Commenting on the position, a Bradford correspondent writes: “A marked change has come over the market in the present week. An improved demand for tops, especially finer qualities, has been piaintained, and an advance in prices has been made. The hardening of .values, which commenced when Australian growers agreed with buyers on the selling programme for the remainder of this season, has con-

tinued because of the confidence created. Not only have our own importers bought more freely, but it is reported that speculators unconnected with the wool trade have joined in the bidding at the sales, having apparently decided that wool at the present price is a good investment. The bidding at the London sales has also become more active in a general sense, therefore wool to-day occupies a much better position than it did a fortnight ago. An increased acreage under sugar in Europe is predicted by Dr. Mikusch (the-(international expert), who says that even if the Soviet’s anticipated increase of 40 per cent in the sowings is not included, somewhat larger sowings will be made throughout Europe than last' year, Negotiations, regarding price continue in Czecho-Slovakia, but it is generally believed that the sowings will be increased there. In the United Kingdom, Austria and the Soviet Union the areas have been increased, while an increase is expected in France. The increase in Latvia will be from 4200 to 6280 acres. No material change is expected in Belgium, Holland or the Balkan States, but Polish and Hungarian planters favour an increase, though the factories want restriction, and in Italy growers have agreed to plant 272,000 acres instead of 282,430 last year. Mr F. O. Light (the Mad'geburg expert) estimates European beet sowings, including Russia, at 2,970.000 acres, compared with 2,650,000 last year. The campaign against the sale of blended butter in wrappers not indicating the source of origin is being vigorously carried on. The activities of the organisers are receiving much publicity in the Press. In the meantime the opinions of retail traders on the subject seem divided. For instance, the president of the Birmingham and Midland Counties Grocers’ Association, addressing that body, said that the promoters of the Blended Butter Bill might not be aware of the possible injury that would be clone to British butter if the Bill became law. The practice of blending butter had made butter more palatable and saleable, and had led to more British butter being sold. On the other hand, the director of an important London grocery store, writing to a trade paper, says it is clear that public opinion is solidly against the continued use of wrappers cpnveying the impression that blended butter is English butter, and he suggests that in their own interests the local grocers’ associations should definitely range themsellves on the side of the public.