BRITISH TRADE REVIEW.

Auckland Star, Volume LX, Issue 35, 11 February 1929, Page 4

BRITISH TRADE REVIEW.

FINANCIAL STRINGENCY. STOCK EXCHANGE DEPRESSED. THROUGH FALL OF BANK RATE. (Australian and N.Z. Tress Association.) (Received 9 a.m.) LONDON, February 9. The. raising of the bank rate had the immediate and inevitable result of depresisin? the Stock Exchange all round, and naturally gilt-edged securities were most nflVited, for these fixed interest bearing Ktocks are most susceptible to movements of this kind. There was not much selling, but prices were marked down as a precautionary measure and the movement (.ontinued yesterday, the greatest declines being 3Vz per tent conversion and 4 per cent funding loan, which lot were quoted at l'li below Wednesday's closing prices. Colonials also shared the depression, though, older stocks mostly maintained their position and in some instances are actually higher than a weelc ago, but new issues lout ground. Both Australian us and Xew Zealand 4Vs'e gave way, and from being at, slight premium relapsed to a quarter discount. Bank and insurance sharm reflected the decline in gilt-edged, but industrials generally have shown some recovery from the initial depression largely as the result of buying ordcts from bargain hunters on the look-out tor cheap stock, though the reaction on Wall Street naturally affected many industrials which recently had been attracting American buyers here.

Discussing the rise in the bank rate, '"Statist" says: '"There is every reason to anticipate that the object the bank directors hand in mind in raising it. namely, replenishing the gold reserve, will be fairly rapidly attained. Great Britain is now a substantial creditor in the international short loan market and is calling in loans, expecially from the United States and Germany. This, together with the more normal factors affecting exchange ;ir, this time of the year, should make for a substantial appreciation of sterling. "Also, it must not be forgotten that in many Continental centres money rates are very appreciably below London, and the result should be a steady flow of money from these centres to London. - ' Dairy Produce Sound. Although the prices of butter have given way slightly, there is no reason to expect any serious reduction in values for consumption remains good and arrivals in February and quantities afloat are not ereat. Also there is no accumulation of stocks here and practically all butters are going into consumption immediately they arrive. This season ought to work out satisfactorily for factories which have consigned their butter and it is worth noting that prices to-day are fully 20/ per hundredweight higher than a year ago. Poor Egg Market. Shippers of eggs from Australia and New Zealand have struck a very bad time and the market has been greatly depressed. There has been a slight hardening of prices during the last few days owing to cold weather on the Continent, but before that supplies of Continental eggs were so great that the Dominions' produce could hardly find buyers. Best price for Australia's to-day is 13/ to 14/6 per 120, a figure which cannot I possibly give a profit. Importers say that the time of 20/ and 22/ for Australian eggs has gone and it is a question of the wisdom of shipping them next year. Wool Market Weak. The ''Economist's' Bradford correspondent writes as follows; "The demand for tops is very disappointing and in the absence of bulk business to test the markets it is difficult to say how quotations stand, but it is fairly evident top makers are prepared to make concessions and for any bulk business prices, especially for Merinos, are distinctly easier. Crossbreds are considered to be too dear at current rates, but sellers are not quite so ready to make market reductions in these qualities, although here also the position favours buyers."