LONDON'S BUSINESS.

Auckland Star, Volume LII, Issue 56, 7 March 1921, Page 5

LONDON'S BUSINESS.

AN IMPROVING TONE. BUTTER PRICE MAINTAINED. WOOL SPINNEB.S' DIFFICULTIES

(By Cable — Press Association.—Copyright.i JjOXDOX. March 0. After a fortnight, of dullness and degression the Stock Ivxchange has taken a decided turn for the bettor, with improved sentiment not only :n investment sections, but also in industrial and ; speculative groups. The amount of business done showed little increase, bin. an optimistic feeling is prevalent. The ciiief cause is the Prime Minister's masterly presentation of the- Allies' case regarding reparation. The announcement of tlie imp*sr.ainj; retirement of Sir Kri,- Geddes '_ _jx the Ministry .if Transport and inf. jiubablp relinquishmerit of (Jovcrnment control of the railways have also iial a stimulating effert on the railway section. The Australian exchange position is gradually ;nv|>rovinjr, as wheat and otner! products Vo being shipped, but ■»., »ar bankers are unable to increase traders' facilities to any great extent. The trouble <s the accumulation erf the past :lve month.-'. Till that is removed bankers cannot have tiie freedom of action necessars to prt mule on anything like its rid basis. I The movements of wholesale prices; and commodities during February wore universally downward. The average level <w |>r!o<»s of i<) Hod commodities ■■ and 'JO raw materials .-hnwed a decline I of !H per .-ent compared with January prk'Ps, and -1.l per cent compared w;th prices in 'February. l!>'2-V Tae pnees of American cotton, crossbred wont, jute, n.Kber. tin. and lead are all be'.ow the pre-war level. KutLer supplies continue to arrive, and lari:e stocks are accumulating. Trices are tending lower all round. The price | of Danish butter has been red;ioed to! 21rt, f.o.b. The Government's last distribution of butter consisted SO per cent did not like, i-ons(*|.'ently most of it was not sold. A-lthnu;:;i butter v very plentiful, the Food Ministry ia not rediiong t'le price, as was confidently expected. li U understood that the! Ministry is anxious to reduce it. but the Treasury refuses to sanction a reduc- j t i>ll. as it, would entail considerable loss. The cheese market i.i UerUlodlv rirmer. New Zealand white is sellng at 147 to 148 , and coloured at I".S to ltif> . No fresh New Zealand arrivals are due till the end of th-e month. Tiiere are hopes that the present values will '.«• maintained until the end of April. The Government's final distribution of imported cheese next Wednesday will clear the Government's New Zealand stocks. The t'n market is depressed, following the removal of the rtxed price by the •Strait* Settlements Government. The East shows no anxiety to sell at the present level, but the prospects of a free market in the futrire has caused pre-1 raium Straits to decline to £ in. Spelter is steady, owing til the feeling that the suj/ges-ted export dit,- will cause a re-

duel inn of shipments from (ierraanv, which :.< th<- principal snun-r nf supply. The present business with ronsumers is suggested export, l>;it there is a slight improvement in the demand. The wool sales just closing demonstrated the weakness of the demand and tlie dullness of consuming centres, although present value* are on such a reasonable basis a> lo enrourajre operations. American act vity has temporarily ceased, owing to uncertainty regarding the tariff legislation and its [i>.-.-ible retrospectii-. nponiti'iii, liUl when the situafnn becomes dear a steadier demand from the I'nited States for good wools seems likely. The Continental demand has been the most static factor of *he sa'.i'.s. tlonnany and 'Prance are both operating to a greater extent. Oermany once more is making her influence felt in the raw material markets, which is an important &te>p toward normal conditions. Large stocks and financial stringency are hampering the wool trade of Orc'at Britain. Ketailers are holding stocks for h'gh pri<-es. based on the boom period rather than the present cost of replacement. Until values at the retail end of the trade are adjusted there cannot be a general revival of .business. The existing sto.-ks of wool must be cleared, and the costs of production reduced before an increased turnover is obtainable. Old stocks do not present the same, difficulty in the United States, and Germany, where vrojl is going into consumption more steadily.