FINANCE, COMMERCE AND MARKETS.

Auckland Star, Volume LVII, Issue 10, 13 January 1926, Page 4

FINANCE, COMMERCE AND MARKETS.

KAURI GUM.

MERCHANTS RESTRICT BUYING

THE CONTROL ISSUE

A good deal of uncertainty us to the future is still felt by local merchants interested in the kauri gum industry, and in this connection the latest Ministerial pronouncement lias not allayed uneasiness. Complaints Laving been made that merchants had either ceased or restricted their buying operations as ihe result of the passing of the Kauri (,um Control Bill, the Hon. A. D. McLeod, Minister of Lands, issued a statement in which he mentioned that though the Act comes into force on April 1, it will probably be June next before the Control Board commences to function. He added:—"As the board will not iissume control of kauri gum purchased prior to April 1 next, or perhaps a later ilate, it will be seen that no grounds exist for the fears expressed by dealers and purchasers of gum to the effect that they will be prevented from disposing of gum purchased during the period between the date of the passing of the above-mentioned Act and the date when the board assumes control." To this the Merchants' Association Las replied as follows: "The stocks of kauri gum held in Auckland by merchants and brokers amounts to £200,000 in value, and of this a large proportion has been held for over two years. It is quite apparent that the gum unwillingly held for such a long period could not have been disposed of. How then can it be expected that when the board begins to function it will be possible to dispose of such holdings in six monthe, especially as it is well known to the trade that sales under the Board of Control will be restricted? As a business proposition all now in the trade will restrict buying or advancing more and more as time approaches towards the functioning- of the board, as every week nearer the time for the board's action is a week less in which to sell the new gum, until the time becomes so short that no one will operate thus making the position more acute for the digger. Business will be confined to the immediate requirements of the exporter." The letter adds:: "At all times gum held by the merchants and brokers is approximately £200,000 worth, which has either been purchased outright or fully advanced against. We repeat our invitation to the Government to send an officer from the Audit Department to examine the books of the merchants and brokers. "In conclusion, we have to stress the fact that -whilst the producer will be represented on the board by vote, the trade has no alternative but to accept the representative appointed by the Government." It is understood that the Minister intendg on his next visit to Auckland to inspect the stocks of gum held by local merchants.

BANKRUPTS IN CHRISTCHURCH

MANY IN 1925. If the number of bankruptcies dealt with, "by the Official Assignee "were to be accepted as affording a true indication of the state of trade in Christchurch in a particular year, 1925 would appear as much worse than any of the preceding years. The bankruptcies in the Christchurch district, comprising the area from Kaikoura .to the Eakaia Hirer, totalled 61 last Tear as against 49 in J924, and 46 in 1923. In an endeavour to condone the position the "Lyttelton Times" says:— There are, however, many factors that may be responsible for a large number of 'bankruptcies, and though the figures for the past twelve months exceed those for the previous year by twelve, that cannot 'be taken as an indication that trade conditions were bad in 1025. A classification of the bankrupts shows that the increase took place among persons conducting small businesses on their own account. Many of the bankrupts failed in business through having started with insufficient capital, and other's were unsuccessful because of lack of business training. These factors account largely for the failures of what aTe known as one-man Trusinesees. Of the total of 61 nine are farmers. The nuniber of bankruptcies dealt with by the Official Assignee in Christchuroh in the past nine years has been as follows:—1917 (33)", 1918 (10), 1919 (9), 1920 (22), 1921 (25), 1922 (41), 1923 ,(46), 1924 (49), 1925 (61). It should 'be remembered, however, that no official TecoTd is kept of estates privately assigned, the number of these varying considerably in different years.

TRADE HEAVILY HIT. Tooley Street evidently had to stand its share of the losses when hutter slumped on, the London market in November, precisely as Bradford lost millions when wool crashed nine months before. In a review dated London, November 26, Messrs. Dalgety and Co. state: "The sudden slump has hit heavily various interests concerned in the trade. Large quantities of New Zealand, which could have been readily cleared at 226/ to 230/, were held under factories' instructions at 234/ up to 235/, consequently only a portion was sold, the balance being still on hand. Speculative importing houses who bought while prices were rising, expecting to make a profit in the near future, are left, with a considerable share of their purchases — while wholesalers and retailers generally possess stocks on which they 6eem pretty certain to lose money. It must also be borne in mind that there are fair stocks of last season's Australian butter still in cold store."

The feeling that; the Government will drop the proposed control 13. steadily growing (says the Ghristehureli "Press:") The poultryman has not yet been heard an the matter. So far, Ms requirements seem to have been officially ignored. If he i 3 prepared to pay over 7/ for fowl "wheat whilst the maximum price for milling is to be'6/G, there is likely to be trouble of-, uome sort. The general belief is that "control" bristles with more difficulties than usual, and that the sooner the Government gets out the better for everyone. CHICAGO "WHEAT. I (Received 12.30 p.m.) NEW YORK, January il. • I^ 1 ? 88 ? "Wneat—May, new ?1.753, old September - •*•"**

THE MARKETS AT A GLANCE.

ACTIVE WHOLESALE TRADE

' TOWN RETAIL TRADE QUIETER. COUNTRY DEMANDS INCREASING. NEW ZEALAND CANNED PEAS SHORT. ,; Auckland Star " Office, Wednesday, January 13, 1926. Following- up the very busy period that merchants experienced last week, business for this week opened up in grood volume. Local retailers' replenishments are no\\ about satlsiled, and business from tnis direction Is not expected to show any substantial increase till the school holidays are over and families commence to come back rrom the seaside resorts. The railing off in local requirements is being: made up for by the heavier increase in country orders that Is now coming , in, and wholesalers anticipate being- busy right up to the end of the present month. With the exception or flps. which are being: offered in a few isolated sizes at exceptionally attractive figures to clear, all wholesalers made a pood clearance of those lines that are in demand during- December, which is particularly pleasing, as, Immediately the holidays are over, the demand for the fancy lines ceases, which means either sacrificing: the g-oods at a loss or carrying them over till the following year. Imports from overseas show substantial volume, and at present there is no sign of any shortage or English commodities, although a quieter period is expected towards the end of the present month. Drapery. The great number of people that are now away at the seaside has brought about quieter conditions of trade, as far as the drapery houses are concerned, and they are not expecting- to be very busy till towards the end or the present month, when a start will be made towards replenishing- the children's wardrobes prior to the commencement of the school term. Shopping for the Christmas and New Year week showed a substantial improvement over the previous year's trading-, most shops being well patronised by the country visitors who were in town for the races. Owing , to colder conditions than usua) experienced during the early part of December, bathing suits were not in such heavy demand till the holiday week, when a steady demand was experienced. The hot weather last week acted as a further incentive, snd the public are now buyingfreely. Sunshades are in heavy demand, the change to warmer weather and bright sunny days causing- a phenomenal demand for all varieties, rrom the Japanese paper covered to the bright cretonne, sunshades which are now being shown in such attractive designs and colours. Bacon and Ham*. Following a quiet market after the heavydemand for hams tEat took place during the few days preceding- the Christmas and New Year holidays, curers, with the exception of one packer, announced a reduction of Id per lb on all cuts or bacon and hams in the early part or last week. Swan packers, on the same date, announced a reduction of 1d per lb on hams and Id per lb on both pat and bulk lard. Flaked Rice. The Australian manufacturers or flaked rice advise an alteration in their selling terms of their Boz packets, so that when the next consignments come to hand they will land at a slight Increase on previous costs. Cheese. Owing to a weakness on the Home market for cheese, the tendency has been for lower prices, which Is now reflected by adjustments in local selling- rates. Soap and Washing Powders. One or the large packers of laundry soaps and washing powders announces an alteration In the wholesale discount terms, and also a reduction in the single case rates of the following brands:—Sunlight, Lux, Monkey, Soap and Castile, 6d per case. The selling rate or Hudson's Extract has been reduced 3d per box Tor both single and quantity lots, and this is also included in Lever's list, so that retailers can secure the benefit of the quantity price by including- same in their ten case assortments. Cigarettes. Commencing rrom the beginning- of January, the wholesale distributors of tobacco and cigarettes were advised of a substantial reduction on Bear's Number One cigarettes. This reduction is now being passed on to the retail trade, and only holds g-ood while present stocks last. Chinese Peanuts. Firm offers are now being- made on j Chinese number one hand-picked peanuts j for January-February shipment. In one case an advance or 5/ per ton is advised, but In another instance easier conditions are advised, shippers quoting a reduction or £2 per ton on indent rates listed about the middle of December. Dried Apples. American shippers report that the dried fruit market is ilrm, and that the demand on some varieties has been so heavy that some of the newer lines are already out of stock. Dried apples have been in heavy demand, and shippers have now advised an advance in indent rates of 2/G per cwt. Ceylon Tea. The first sale of the year took place at Colombo on the sth instant, when 4,300,0001b was offered, which was !n excess of the previous sale by two million pounds, the extra quantity being caused by the accumulation ol" consignments during- the holidays. Quality or the upcountry sorts showed slight improvement, with other kinds unchanged. The markiu rules very strong, although quotations have not altered since last report. London buyers are operating freely, which will tend to keep up the market. Exchange now rules at 1/6*. The monthly report from Colombo states that the quantity brought to auction during November was only moderate, and amounted to 0,750,0001b. Shipments to the United Kingdom were nine and a-half million pounds, making the total for the year one hundred and seventy-nine millions, as compared with one hundred and seventy millions for the same date last year. Tne feature of the market during the month under review was the continued hardening tendency for common and medium teas, which more than maintained the advances established during the previous month, Common Broken Pekoes being from 35 to 40 cents dearer than what they were at the lowest point in August last. Farmings and Dust were again in strong market, the stronger market in this case being due to the renewal of Russian inquiries. Hign grown teas, owing to tne general decline in quality, were correspondingly cheaper to buy, but the few Invoices that possessed real quality auu flavour met with an appreciative market, and sold at full rates. The month was an unusually wet one throughout the planting districts, but, notwithstanding this, good crops were harvested, and liberal shipments may be looked ror up to the end of January. Quality was a little better than what it was, but no marked improvement can be expected till weather conditions are fairer than what they are at present. The statistical position as a» the 31st October was an Interesting one. The Indian tea figures were then eleven million pounds down, as compared with last year, which, added to the reduced production from Java and China, and allowing Tor tbe increased Ceylon export, showed a then visible shortage of 21,5 00,0001b. The November figures for India, when they come to band, are likely to reveal a further marked decrease in output, as compared with the same month last year, when, it will be remembered, an abnormally heavy crop was produced. Tbe imports of Ceylon tea into New Zealand from January 1 to November 9, 1925, totalled 5,555,5781b, as against 4,506,9781b for the same date of the previous year. Indian tea to Australia and New Zealand from April to November inclusive amounted to 4,008,9131b, while for the same period or the previous year the imports only amounted to 2,227,8461b. From the beginning- of January to the end of September the imports from Java amounted to 16,141,400, as against 17,875,0001b. - Spirits of Turpentine. Forward quotations are now available for February-March shipment on Voco pure gum spirits of turpentine packed in 45 gallon steel drums. In comparison to the list issued the previous week, present quotations show a reduction of isd per gallon, and the drums also remain the Pjoperty, or the, buyer, which did not pernnStoS c P reviou s Hst issued. Oversea n?P*pm Sftf re stIU vel- y bl « h > and ' the Pn tw? m,^- 6 r - e P re fents. quite a concession ll shou, - d ™™ '?■ Peppers. The strength in all grades or -white and black peppers continues to be a Feature or the Eastern markets. Only frac«onai advances were recorded in indent ratls "i&sn? rlsS

being- 10,000 tons less than 1924. The total shipments during 1926 are estimated, owing to crop shortages, etc., as being , 6000 tons less than the year. 1024. As supplies during 1924 were only sufficient to balance the consumption, it is fairly evident that further increases in prices will eventuate. Canned Peas. Nelson packers advise that tbe pack of canned peas is exceedingly short, and that the quantity being distributed to wholesalers will be even less than packers were able to deliver last year. Allotments have been made to the various districts, and merchants have been allocated small parcels, which are being delivered towards the end or the present month. Owing to ! extra packing costs and the short pack, present new season's prices represent an increase over last year's rates of 1/6 per dozen. Retailers requiring supplies would be well advised to specify their requirements early, as only by early application will they be able to secure supplies. Linseed Oil. The feature of the oil market has been the marked decline in oversea quotations for raw and boiled linseed oil. Price lists circulated at the end of last month advised an all-round decline of ;id per gallon on spread shipment purchases ror January-February and March-April shipments. Further advices now to hand show that a further decrease of lid per gallon has been made in Glasgow f.o.b which, added to the slight reduction advised in the middle of last month, makes a total rail of ijd per gallon. Hardware. Hardware houses report business as moving in good volume since the holidays, and, as a result of the good mail orders received, packers have sent good consignments rorward by both rail and steamer. The majority of retailers in the town and suburban districts were very busy during Christmas week, but were unable to make such a favourable repoft ror the week following, as trade was very slack. Further shipments of preserving jars are now to band and are being distributed, and are expected to find a ready sale, owing to the amount or fresh rruit that is now available. Wholesale Current Prices. Butter.—Superfine quality creamery butter, booked l/7i per lb, prompt cash. Anchor 1/61 per lb, Opotiki 1/Ci per lb; first grade factory, 1/6 A per lb booked and 1/6 per lb for prompt cash; second grade factory, booked 1/5* per lb and 1/5 per lb ror prompt cash; farmers' separator, 1/2 per lb. Cheese.—First grade factory, medium size, mild 10id to lOjd per ID, matured 1/0$ per lb; loaf, i/OA per lb. Bacon.—Hams, 1/ to 1/2 per lb; rolled hams, 1/2 to 1/3 per lb; boned hams, l/3i per lb; bacon .sides, 1/ to 1/2 per lb; rolled sides, l/l to 1/3 per lb; middles, 1/2 to 1/3 per lb; shoulders, 9d to lid per lb; rolled shoulders, lid to 1/ per lb. Lard: Bulk, lOd. to Hα per lb; pats, lid to 1/ per lb. Flour. —Local and Southern,- 20oib sacks £19 15/ per ton, iOO's £20 10/ per ton, 50's £21, per ton, 25's £21 15/ per ton, less 24 per cent discount. Sharps and Bran. —Local sharps, £io 10/ pei- ton; bran, £9 10/ per ton. Linseed.—Whole, 2-i - / per cwt; ground, 25/ per 1001b. Bluestone.—32/6 per cwt.

ONDON BUTTER SLUMP.