LONDON'S TRADE.

Auckland Star, Volume LV, Issue 77, 31 March 1924, Page 5

LONDON'S TRADE.

MONEY FOR INVESTMENT. THE STRENGTHENING FRANC. GILT-EDGED INVESTMENTS. ißy Cable.—Press Association.—Copyright.) LONDON, March 30. The Stock Exchange has been under the influence of a number of adverse factors for the last fortnight, and especially this week, notably the London strike and the dispute between the miners and their employers, also political events on the Continent, particularly M. Poincare's resignation. The result has been that business has steadily decreased, until in some speculative markets it came almost to a standstill. Yesterday, however, matters improved considerably, owing to rumours since confirmed that the tram strike was settled, and the news of M. Poincare's happy issue out of his afflictions. As a result the Stock Exchange closed on quite a cheerful note. The bright spot throughout the dull times has been provided by the giltedged market, which has kept surprisingly firm, thanks largely to the cheapness of money and the fact that, in the absence of the long-hoped-for trade revival, there has been a considerable accumulation of resources for investment. These have found their way into the gilt-edged market. A striking illustration of the plentifulness of money for investment is shown by the success of the Siamese 6 per cent loan of £3,000,000 at £95 10/, which was subscribed to the extent of £35,000,000 in a hour, •without counting large provincial applications. The recovery in French exchange has continued, and the value of the franc to-day, 78.45 to the £, shows an increase of 50 per cent in three weeks. The French Government appears to have moderated its campaign against speculators, and it is said thatl its policy now is to stabilise the franc at about 80. The rapid recovery of the franc has been somewhat of a disaster for French producers, traders, and speculators. There is little sympathy for the last-named, but many people were made involuntary "bears." Commercial firms with heavy commitments desired merely to protect themselves against the possibility of the continued depreciation of the franc, which at one time looked probable. In taking protective measures against this contingency they actually incurred more serious losses than those against which they desired to insure themselves. The effect has been seen on the Paris Bourse, which has been passing through a severe crisis. THE FRUIT MARKET. • The opening of the Australian apple season, which begins with the arrival of the Esperance Bay's cargo of "Victorian and West Australian fruit on Monday, is awaited with considerable interest. The market is still receiving fair quantities of American apples. These are mostly inferior sorts, which are selling cheaply, but better varieties are making fair prices. Oregon Newtons are quoted at 11/ to 14/, Jonathans at 11/ to 13/. Most of these are somewhat wasty, and if the Esperance Bay's consignment arrives in good condition it should command much better prices. Supplies of oranges are very heavy, but this ought not to affect the demand for apples. The question of a shipment of blackspotted apples from Tasmania is attracting some atter.tion, and fears ,". oxprossed in some quarters that i"ii! presence of this fruit on the market may have a bad effect on prices for that from other Australian States, and damage the reputation of Australian apples generally. On this subject one of the leading importers says it is a matter of opinion. Good fruit should always command the highest market price of the day, and it should not be forgotten that even in the wealthiest communities there are many thousands who cannot afford to buy the best. In any case the first consideration should be for the growers, who, if the orchards do not produce first quality fruit, should not be denied a market for what they have grown. The risk of loss is theirs, and if they are willing to take chances they should be allowed to do so. People here will want fruit as much as in former years, but it is clear that there is not so much available, and the growers should benefit by a higher average for what does come. THE -WOOL SALES. The wool sales are drawing to a close without a sign of weakness. Prices, both for Merinos and crossbreds, have been fully maintained. Crossbreds are especially strong, thanks chiefly to the active home demand, which fully compensates for the lack of American biddings. The latter are noticeably absent. Regarding the wool textile industry, the "Economist's" Bradford correspondent writes: "It is unfortunate that little business can be done in Merino tops and yarns. Prices are maintained by the strength of the raw material position, but there is a marked absence of activity, as users cannot sell at prices based on the dost of the wool." In the crossbred section, however, a nice steady business is passing all the time, and medium low tops show a hardening tendency. Consumption is now on a large scale, and, as the spinners are well booked up for several months ahead, there is little reason to fear a set-back. It is obviously a question of price. tbe market for cloth and wholesale fabric buyers appear to have made up their minds not to operate at all freely on current quotations. For finer fabrics the demand still favours the cheaper goods, and woollens are more sought after than worsteds. — (A. and N.Z.)