LONDON'S BUSINESS.

Auckland Star, Volume LIII, Issue 137, 12 June 1922, Page 5

LONDON'S BUSINESS.

LIFELESS STOCK EXCHANGE. KEEN DEMAND FOB, BUTTER. SUPPLIES RUNNING SHORT. jßy Cable. —Press Association.—Copjrlght.l (Received 10.30 a.m.) LONDON, June 11. Kervousness about Ireland, and uncertainty regarding the reparations question liave had a chilling ellect on tliu stock markets. Business all round iias been dun, ami gilt-edged securities have been especially weak and lifeless, athough prices are below the levels jusi iliod by the monetary position. Colonials are also Hat, mainly owing to weakness in the recently floated 4 A per rent loans, of which the Kew South Wales issue is now quoted at £3 15/ discount. It is generally considered that the Colonial Government overestimated the iinjiroM'iiient in the scaie of credit, and it is rumoured that the next colonial loan will be issued at 5 per cent. Another contributory factor to the weakness of gilt-edged securities is the fact that many people have been selling them in order to operate in home rails. in which there was considerable activity until this week, ami also the fact that the underwriters of the recent unsuccessful colonial and foreign issues have been compelled to liud the money to take up their liabilities. The large losses of insurance companies, notably over the bullion in the steamer Kjryi't. have had a depressing ellect. A feature of the foreign exchange market lias been the strength of sterling in New York, where an optimistic feeling apparently exists regarding our linancial position. There has also been a marked appreciation in Ihe value of sterling exchange in all the important European centres.

The dry hot weather of this month is restricting the output of British, Irish, and Continental butter, and fears of another drought like last year's have caused a sharp rise in prices. Multiple shopowners and blenders have been buying colonial freely in order to ensure their supplies, and as a result hardly a box is available in Tooley Street this v cek. The HaHnrat's cargo of -10,501) boxes sold before it was discharged, and though over :JOO,OOO boxes of Australian and New Zealand butter are due to arrive in June, there is likely to be insufficient to meet the demand for another week or so. Later on, too, there appears the probability that supplies will be short, for the total afloat from Australia nnd New Zealand is considerably below that of the corresponding period of 1021.

The strong market for cheese is chiefly due. to Americans purchasing Canadian, largely in anticipation of the tariff on ■luly 1 imposing a duty of 7 cents a pound. It is estimated that the Americans bought an amount equal to three weeks' Canadian shipment to Britain, which otherwise would have been shipped here, while the hot weather is stimulating the consumption of cheese.

The dry weather is also proving beneficial to the apple trade, for supplies of strawberries and cherries are small, and their condition unsatisfactory. In a normal season mid-June sees our markets flooded with cheap French cherries. This year we are getting few, and of these a larjie proportion are almost worthless. Fair quantities of Kentish and Hampshire strawberries arc coming to hand, but they are mostly small and tasteless owing to the absence of rain, so the demand for Australian apples is •»ell maintained, all tlie sound selling well. Unfortunately brownheart is very prevalent, causing many. rejections by purchasers. This is regarded as most s.-rions by importers, some of whom say they will only make small advances next season in the face of a possibility of the recurrence of this trouble.

It is expected that the wool sales opening on Tuesday will show little chnntre from the May closing rates. Bullish factors are in expectation of a good T'nited States demand and the probability of a rapid sale of merino surplus. Asrninst there must be, placed the fact that Bradford wants lower prices. Tonmnkers are fairly well stocked against contracts, and reports that topmakinff sorts are cheaper in Australia mnke them cautious. The yarn trade remnins active at moderately firm prices with the general turnover increasing. The niece <ronds trade is stendilv imnrovinc. and the heavy TToollcn <rn>le shows marked improvement, csnermllv the fxport" trade. Practicnllv all the mills nt BnrW are running the full 4" hours' week.— (A. and N.Z. Cable.)