BRITISH TRADE REVIEW.

Auckland Star, Volume LXI, Issue 140, 16 June 1930, Page 4

BRITISH TRADE REVIEW.

STOCK EXCHANGE DULL

GILT-EDGES AFFECTED

SOME LOWER DIVIDENDS

LONDON, June 14. The high hopes entertained a fortnight ago of an early reduction of the bank rate to IY2 per cent, have been dashed £ to the ground by adverse movements on t foreign exchanges, and heavy demands ■ for gold from foreign countries, especially ; France. It now appears likely that strin- ■ gent conditions will prevail in the money !• market all this month, and this expecta--1 tion 'has caused renewed dullness on the Stock Exchange, especially in the gilt- ! edged market. The depression spread to \ other sections. The slump in Wall Street 1 last week-end and the renewed weakness 1 there have caused serious depression in \ industrial stocks, which has been accentu- , abed by the poor results shown in the ' reports of many trading companies. Among those that have declared lower dividends are several connected with the Australian, trade. For instance, and Christmas, who' are large importers of Australian and New Zealand butter, state that "owing to a decrease in profits resulting from the fall in the value of commodities dealt in," they will not pay a final dividend on the ordinary shares, the only distribution being an interim dividend of 2 per cent paid in January. This company has been paying 10 per cent dividend for some years past. The only satisfactory event of the week has been the success of the German reparation loan. . , Butter Market Improves. A welcome change has come over ihe butter market since the Whitsun holidays, and during the last few days buyers have been more active than for a long time past. Mr. Charles Wilson, a member of the Australian Dairy Produce board, has returned to London after a two months' tour of the Continent and industrial centres of Britain investigating the position of the butter industry. In an interview he said he gathered the impression that Continental countries had increased their herds largely, especially Germany. During his visit to the north of England he found all the multiple shops selling Danish, New Zealand and a limited quantity of Australian butter, at 1/3 per lb, without any strong demand. Reviewing the position in London to-* day, Mr. Wilson estimated that the visible stocks in Britain exceeded 1,000,000 boxes, but thought that the market had now touched bottom. Big Buyers Operating. The blenders and multiple shops are now operating freely, apparently thinking it desirable to provide for their autumn and winter requirements while prices are moderate. Their operations had raised the prices of the choicest New Zealand butter to 134/, and Australian to 131/. These operations, of course, would only mean a transfer of stocks in cold store from the wholesale trade to the multiple shops and blenders, and unless this butter was consumed before the end of the season, its presence here would influence the values of the new season's make. Apples Selling Well. Prices of apples have been keeping up remarkably well, considering the heavy supplies, and the demand remains satisfactory. Within a few days, however, large supplies of strawberries are likely to arrive on the markets, and their competition will naturally affect the sales of apples. In view of criticism passed on some Victorian apples recently it is only right to point out that many Victorian apples are entirely satisfactory. One of the leading brokers at Spitalsfield Market, in his weekly report, says some of the Victorian fruit, packed under a community brand, lias been of fine quality and met with a good demand. This fruit was packed in Canadian standard cases, attractively labelled, and was most attractive, and buyers continually express appreciation of the change in the style of packing.