BRITISH TRADE SUMMARY.

Auckland Star, Volume LVII, Issue 157, 5 July 1926, Page 5

BRITISH TRADE SUMMARY.

EFFECTS OF COAL STRIKE. bad for nan. dominions BUTTER AND MEAT TRADE. - i:.---.i v.;i l>> a.m. LONDON. July 4. Although the hoped-for reduction in r iio Lank rate wa< not ma.:.; last Thursday the London Stock Exchange expects ■1 reduction, probably to . per cent, next •'eek. In anticipation all grilt-edgod 1 - u:ir.- r-.wealth 1- an scrip iias improved to rive.-ixteeuths disc-ount and it js cniid.-:it!y .-xpecrcd the discount will I" other -»'..-♦ ion. of the Stock Ex- ; -i-i."._- . :si-:. s- is ._r. a small scale, but tue t ne i- conhdent and hopeful views are .-\pres-.--d that the coal strike will In .-p:te aii unfavourable induencCs tiie ::r-t. half ■'i i:.'■_.; has been a satis-fai-tory tin:., for investors. According to tli,- -Banker'- M.i.a/ine" the value of

•"-■ 1 ii.pri.'st'-.nativ. -ecurities increased in the -i\ mouths. December 17. 192.5. to •Tune I-\ lf>_t). I.y -7-"i.i;."i.').rioo.iioo. F.!_iit\ -even th.cd interest -t.--ks have risen from -4.ii7."i.ti.';:{.Oii|i.i'M>i to £4.1.11.----.".0_. in hi. in 11. ,:u,; _7S variable dividend securities :'n m to All brand •■- ,1" tiie Australian a-..! New Zeal.md produce trade are .ti'Jcritu ■''v-ri'ly fr.-m tin- effect- of the coal rtrike with it.- rv-ultant unemployment in a!! the : n.lu-trie- which depend on ooiil. It is estimated that nearly .'l.urwi.rioij .corkers are not earning money. Consequently the -ueuding power in industrial districts has enormously reduced, and the consumption of what may be cousidereil luxury foods, siioii as butter, apple, and dried fruits, has greatly diminished. Other more essential foods have also been affected and the demand tor frozen meat and cheese has fallen to very small dimensions.

The apple trade is probably the greatest sufferer from this condition of affairs. Prices continue to decline. Even at ii to S' a case the demand is not sufficient to clear arrivals. The question of holding some apples till the glut in soft fruits has passed has been considered, but it has been found inadvisable as the first American apples are due to arrive at the beginning of August. This is much earlier than usual. There seems to be little hope of any improvement in prices, and it is generally "oelieved that this season's results will be the worst in the history of the apple trade. Stagnation reigns on the butter market. Sales of Australian and NewZealand arc almost negligible. Unfortunately the decline in the consumptive demand came at a time when Continental production was at its height, and Britain has been receiving heavy supplies of Danish and other European butters, which have been offered cheaper than Colonial sorts. Now- the full flush of Continental production is over, however, supplies from that source will decrease, so importers are hopeful that the worst is over, especially as the quantity afloat from Australia and New Zealand is much less than was the case this time last year. Regarding wool the Bradford correspondent of the '"'Economist" says the conditions on the market are "better than might have been expected. These mills are beginning to feel the pinch of the cc-al shortage and production in all departments is being curtailed, but there is a strong belief in the ability of the trade as a whole to make a good recovery when the fuel restrictions are abolished.

This quiet confidence is largely responsible for the steadiness of values. A feature of the trado is the briskdemand for Home-grown fleece wool at country sales. Prices fo» many descriptions are well above those obtainable at Bradford.— iA. and N.Z.i