BRITISH TRADE REVIEW.

Auckland Star, Volume LXII, Issue 103, 4 May 1931, Page 4

BRITISH TRADE REVIEW.

STOCK EXCHANGE DULL. DESPITE MR. SNOWDEN'S BUDGET. WALL STREET INFLUENCES. LONDON. May 2. The Stock Exchange account which closed on Thursday was very unsatisfactory for almost all the departments except gilt-edged stocks, which rallied strongly after the disclosure of the Budget. As soon as it was known that no addition was to be made to direct taxation all British funds moved upward, in some cases almost two pointe, and remained firm.

Brewery and tobacco shares also recovered, when it was known that Mr. Snowden was not imposing fresh taxation Even oil shares, which have been very depressed, became a shade steadier as the additional tax was less than had been anticipated, but apart from these industrial shares generally have given way seriously under a number of adverse happenings. The chief among these was renewed liquidation from Wall Street, following the failure of two important firms there, and unsatisfactory advices from the Continent. Other depressing events have been a fall in commodity prices, the decreased earnings of several large trading concerns, and consequent reduction in dividends, and in some cases the passing of them.

As an illustration of the unsatisfactory position it may be mentioned that now capital issues in. April, according to statistics compiled by the Midland Bank, were only £1,687,000, compared with £21,270,000 in April, 1930. Trade Prospects Better. It is therefore gratifying to note some signs of recovery in trade. According to the "Financial News" some directions of improvement are now apparent. The number of unemployed on April 20 was 2,513,856, the lowest total since December 22, 1930, compared with the peak figure of 2,691,937 on March 9. Freight rates have strengthened, and idle shipping has decreased. In the last fortnight alone about 250 to 280 vessels, representing a tonnage of from 1.500,000 to 1,800,000, have been chartered. Greater strength has been shown in the wheat and maize markets. The retail trade figures for last month make a somewhat better showing. The "Financial News" sums up: "Although the situation is still full of difficulty, and capable of alarming deterioration, it is incorrect to say that no hopeful sign exists." Apple Trade Setter. The apple trade has improved somewhat in the last few days, and although there are etill large supplies of Americans available, Australian fruit met with a good demand at rather better prices. The quality of apples from all the States shows a considerable improvement on that of the early arrivals in some previous years, especially as regards maturity and colour. This is particularly the case with Tasmanian apples, which are vastly better than in the previous seasons. Apparently shippers have taken to heart the advice given last year, and the results are eminently satisfactory. It is noteworthy that Tasmanian cooking apples have been selling remarkably well. Alfristone are fetching higher prices than dessert apples. This is due to the shortage of English cookers, notably the famous Bramley seedlings, which are unusually available until well on in the eeason. This year, however, supplies of them are practically exhausted, Consequently there is a great run on apples like Alfristons and Wellingtons.

Low Rates for Butter. Although the butter consumption remains good, prices are again easier, for arrivals have been heavy. The stocks in cold store are now nearly 300,000 boxes. Continental production is growing larger, supplies from the Irish Free State arc coming along, and the first shipments from Siberia are due next week, so that although the low retail price is creating a good demand there is little prospect of an improvement in prices. Quality of Cheese. The position of the cheese market is also unsatisfactory. The demand for New Zealand and Australian is poor. The price is about 50/, while Canadian brings over 70/. The difference in price between these cheeses at this time of year Jβ usually about 12/, and importers attribute the greater margin, to the fact that New Zealand and Australian are not so good in quality as they ought to be. The New Zealand Dairy Produce Importers' Association has taken up the matter and circularised the factories, pointing out where it is dissatisfied, and suggesting remedies. Position in Wool Trade. Mr. Devereux, representative of the Australian Woolgrowers' Council, reports as follow:— _ "Since the March sales there have been signs of weakness on the European wool markets, creating a lack of confidence with operators. The opening of the London wool sales was looked forward to as a testing ground of conditions. The results, as far as Merinos are concerned, proves that many pessimistic opinions expressed were unjustified, the opening rates showing very little decline compared with the close of March, whilst in crossbreds, where the statistical position is less strong, the decline is much as was anticipated, and reflects the weaker conditions recently experienced in the manufacturing centres and New Zealand.

"Since the opening the selection of Merinos has improved, good competition being experienced and confidence returning. Crossbreds, whilst experiencing good Yorkshire and Continental demand, remain unchanged at the reduced level. Withdrawals, which were negligible, have been largely confined to a few highly limited wools, mostly bought for exchange purposes. "In many Continental countries which I recently visited most topmaking establishments were very biisily employed, and in the spinning and weaving industries most mills were fairly well employed. Stocks were not excessive. Some labour trouble was threatening the textile industry in France, owing to wage reductions, but actual stoppage may be avoided. Nevertheless, the tone at Bradford is cheerful. Some fine Merino topmakers have increased quotations. Crossbred tops prices arc unchanged. Merino yarns are experiencing a quiet market, with prices slightly reduced."