BRITISH TRADE SUMMARY.

Auckland Star, Volume LVII, Issue 133, 7 June 1926, Page 7

BRITISH TRADE SUMMARY.

WONDERFUL N.Z. LOAN. STIMULATION OF BUSINESS. THE HOME BUTTER MARKET. (By Cable.—Press Association.—Copyright.) (Received 10 a.m.) LONDON, June 6. The prolongation of the stoppage in the coal industry has had the effect of checking business on the London Stock Exchange, as investors are inclined to show caution. The market as a whole has been stagnant, but gilt-edged stocks remain firm in spite of the absence of business. The success of the New Zealand £6,000,000 loan has had an exhilarating effect on all colonial stocks, most of which have appreciated in value. The result of this loan, the scrip of which is now quoted at 1 11-16 th premium, obviously indicates that there is plenty of money available for good investment stock offered on favourable terms. Consequently it is not surprising to hear other colonial issues are being prepared. No official information is at present available, but it is generally understood that Victoria and the Commonwealth of. Australia are likely to be the next borrowers. Neither should have any difficulty in filling its requirements.

Butter prices are well maintained, although buyers are not particularly active. Most of them are awaiting developments. They are fully aware that prospective supplies from Australia and New Zealand are considerably less than they were at this time last year, but against this they set the large increase in Home and Continental production, and the large quantity of colonial butter known to be held in cold stores.

One important factor in the butter situation just now is the probable diminution in the demand owing to the recent general strike and the coal stoppage, which have reduced the purchasing power of many members of tbe community and are likely to cause them to abandon butter for marsarine.

Trade in apples being adversely affected by railway transport difficulties owing to the coal shortage, provincial buyers cannot depend on receiving supplies by rail, consequently they are reducing their purchases and prices have given way somewhat, chiefly for common varieties and over-ripe fruit.

In view of the enormous quantity of apples already here and afloat a further reduction in values may be expected, especially as supplies of soft fruits are now steadily increasing. So far these have been much smaller than was anticipated, owing to the cold, wet weather here and on the Continent, but a glut of them is exnected shortly. —(A. and N.Z.)