BRITISH TRADE REVEIEW

Auckland Star, Volume LXII, Issue 57, 9 March 1931, Page 4

BRITISH TRADE REVEIEW

TURN OF THE TIDE. COMMODITY PRICES MOVE UP. HEALTHY TONE ON EXCHANGE. LONDON, March 8. For the first time since July, 1929, the '•'Economist's" index number of commodity prices at the end of February shows an upward movement. The "Economist' says: —"Although the percentage increase is only one-third of 1 per cent, it is at least satisfactory that the prolonged downward sweep appears to be momentarily arrested."' The upward movement was continued this week, and has given rise to a feeling of quiet optimism, which is reflected on the London Stock Exchange, where prices in nearly all departments showed a general improvement, and closed yesterday with a strong tone. Several other events have had. a reassuring effect, notably the conclusion of tiie Franco-Italian Naval agreement, the India settlement, the reduction in railway wages, the result of the London County Council elections, and last, but not least, the political developments in Australia, which have brought about a considerable increase in the values of all Commonwealth and State stocks.

Commenting on Australia's troubles, an important London etockbroking firm, in a review of the financial position, says Mr. E. G. Theodore's latest proposals give ground for apprehension lest a policy of inflation may be adopted, if the banks should prove unable to exert sufficient influence to prevent a permanent depreciation of the currency. The strain involved in paying the external debts might win acceptance of the invidious argument that loans borrowed when the Australian, pound and sterling were linked together could, with justice, be repaid in Australian currency when the link was broken. Any such repudiation of both • the letter and the spirit of definite contracts, is, however, far from the wishes of all Australians who have any understanding of financial matters. At the very worst, therefore, the risk appears to be one of a partial failure only, and of some postponement of the final dates for redemption of Australian stocks, a contingency which has already been discounted in their price.

Apples and Pears. The prospects for the forthcoming Australian and New Zealand apple season are generally regarded as fairly favourable. North American shipments are still heavy, but are expected steadily to decline; and by the time the first Australians arrive early in April, the supplies from America are not likely to be excessive.

Another factor which should help is the shortage of Spanish oranges owing to damage by frost. Orange prices are steadily rising, and this fruit is expected to become so dear that the demand may be transferred to apples. The prospects for pears in the immediate future do not appear to be good, for the market is plentifully supplied from other sources. Importers generally consider that Australians should not arrive before April, by which time the supplies from South Africa will be beginning to decline.

Butter Sells Freely, Although the demand for butter has slackened somewhat, prices are well maintained, and importers are hoping to be able to keep values at about the present level for a week or two more. It is estimated that deliveries from London for the last six weeks averaged fully 70,000 boxes a week, so there is no surplus stock.

Continental demand is declining as production there increase, but it is expected that the Irish Ffee State will require to import at least 40,000 boxes this month. The tariff duty of 4d per lb hitherto has restricted purchases, but efforts are being made to have this reduced, if not completely taken off. Australian Grading Faulty. The grading of Australian eggs and other food products met with somewnat severe criticism at the dinner of the London Egg Exchange. The chairman, Mr. Alexander Mitchell, said they all wished to see Australia return to her financial strength, but if Australia wanted to get back her business she must see that rile people employed in giving grading certificates were honest and straight. He said that without fear of contradiction, not only as regards eggs, but also other commodities from the Commonwealth which he had handled for more than 35 years. Some of the meichants in England had been "mugs" enough to buy goods outside the regular channels, so they could not hold anybody responsible except themselves. With all due respect to the development of Empire produce, Mr. Mitchell, said he hoped it would go out to the people of Australia that the British trader only wanted fair treacment. >

TIN PRODUCTION. EXPORT QUOTA SCHEME. At a meeting of representatives of tin mining interests at Ipoh, F.M.S., Mr. A. J. Glenister, ex-prcsident of the Chamber of Mines, said he was authorised by the F.M.S. Government to state that it had no intention to rush into the proposed tin restriction scheme without affording the mining community suiilcient details and giving time to enable the companies to decide for themselves whether or not -tlie participation by Malaya is advisable. The Government proposed to examine the questions asked at the meeting, referring ii' neccssary any points to other countries concerned, then issuing a notification stating the scheme in detail, for which it would be prepared to legislate if the bulk of the miners voted in favour. Hie mining community would be allotted ten days after the issue of the notification to vote.

FROZEN MEAT. THE BOARD'S REPORT. The New Zealand Meat Producers' Board has received the following cable from its London office, dated March 6, 1931, advising that the following are the approximate average prices realised for the week, based on actual transactions of wholesale quantities of the descriptions of meat mentioned, and are for representative parcels of .the goods offering during the week, being for business done on the basis of delivered to Smithfield market, and/or ex London stores:— Sheep.—Canterbury and North Island selected crossbred wethers and maiden ewes, 481b to 561b, 3%d; 571b to 641b, 3%d; 651b to 721b, 3%d; North Island, 481b to 561b, 3%d; 571b to 641b, 3Mid; 651b to 721b, 3%d. Ewes, 481b and under. 2Vsd; 481b to 641b, 2%d; 651b to 721b, 2Vid. Lambs.—Canterbury, 361b and under, 6%d; 371b to 421b, C%d; 431b to 501b, 6%d; second quality, average. 331b, 5%d. Selected North Island brands, including Downs, 361b and under. 6%d; 371b to 421b. 6%d; 431b to 50lb, 6%d; second quality, average 311b, 5%d. Other North Island brands, first quality, 361b and under, Od; 371b to 421b, 6d; second quality, average 311b, 5%d. _ ' . | Australian. Lambs. —\ letorian, first quality, 361b and under, od; 371b to 42ib, sd. Argentine Lamb.—First quality, 301b and under, sd; 371b to 421b, 4%d. Argentine Chilled Beef. —Ox fores, o/id; ox hinds, sVsd. Australian Frozen Beef. —Ox crops, over 1001b, 2%d; ox hinds, over 1601b. 3%d. Pigs.—Porkers, 601b to 1001b, 534 d; 1011b to 1201b, 4%d; 1211b to 1801b, od. Lamb market: Continues easier owing to over-supply from all sources. Consumption good. Mutton: There is a little more demand for wethers, bdt prices unchanged. Ewes meeting with better inquiry, with j slightly better prices. New Zealand beef: ' Market is depressed owing to low prices of Argentine chilled beef. New Zealand porker pigs: Market quiet and unchanged, but is still over-supplied with Australian and New Zealand. Baconers: Nominal prices.