LONDON'S BUSINESS.

Auckland Star, Volume LIII, Issue 173, 24 July 1922, Page 5

LONDON'S BUSINESS.

EXPORT TO AUSTRALIA. BUTTER MARKET STILL DULL. NOT LIKELY TO GO LOWER. (Br Cable.—Press Association.—Copyright.) LONDON, July 23. The reduction of the bank rate has had a good effect on all investment sections of the Stock Exchange, and until yesterday, when a slight reaction set in, there had been continued improvement in gilt-edged securities and home railway stocks, which would have been even greater but for prevailing uneasiness about the German reparation problems. There hus been little life in the industrial section of the Stock Exchange, despite i the cheapness of money, because any important revival of international trade is unlikely until the economic outlook of Europe improves. The position of the export trade to Australia continues most unsatisfactory i and the quantity of cargo available from the United Kingdom is far below the average for this time of the year. Steamers are leaving with onls' about one-third of the average amount of cargo . which they carried before the war, and ' 13 steamers listed to leave London for Australia during August, with an average capacity of between 9000 and 10,000 tons, are likely to fare very badly for cargo. The butter market remains very dull. Wet weather has produced an abundance of grass in Britain and on the Continent, with the result that Britain is now getting supplies from France arid Holland, in addition to the bulk of the Danish output, which is being shipped here instead of to foreign countries, owing to the depreciation of German and other Continental currencies. From now until late in autumn, when new Australian and New Zealand butter will arrive, Britain will be dependent on foreign supplies so that prices are not likely to go lower. The probability is rather that there will be a slight upward movement, but it must be remembered that the big multiple shop companies have stored large quantities for August and September requirements. The Australian apple season is finishing unexpectedly well, and the prices obtained for the Baradine's cargo are a great improvement on those realised for previous arrivals. The reason for the firmness is a great shortage of soft fruits, which rain came too late to benefit. The cherry crop, like the straw-

berry crop, has been small, and currants and raspberries also gave a poor yield. Fair quantities of French and Italian greengages are arriving, but they are comparatively dear. Oranges are very firm, so that the prospects of forthcoming arrivals from Australia appear favourable, though they will meet with the competition of South African supplies, of which large shipments are coming forward. Some are already here and are making 16/6 to 20/ a case. The satisfactory opening of the London wool sales, which surprised the majority of users, put fresh life into the Bradford market. The firmness of finer grades of raw material has inspired more confidence, led to more inquiries, and caused the disappearance quotations, which previously prevailed. A well known wool authority writes: "The general outlook, though overshadowed by the uncertainty of European political and financial developments, is undoubtedly good. There are several hopeful features in the Home trade. Unemployment is diminishing, especially in the woollen section. There is some improvement in fine worsted manufacture, and most spinners of worsted yarns are fully booked several months ahead. German textile centres continue to be well employed, and foreign exchange balances still seem to be sufficiently available to negotiate their requirements in raw material. The position in the United States is still unsettled, because of the difficulty of reaching an agreement on the tariff mesure, but prices are maintained at the highest level. — (A. and N.Z. Cable.)