BRITISH TRADE REVIEW.

Auckland Star, Volume LXIII, Issue 198, 22 August 1932, Page 4

BRITISH TRADE REVIEW.

STOCK EXCHANGE QUIET. DOMINION ISSUES STEADY. GOOD PROSPECTS FOR LOANS. LONDON, August 20. The triumphant success of the war loan conversion had little effect on the London Stock Exchange, as far as prices are concerned. There was an early advance in British funds following the announcement of the result, but profit-taking soon caused prices to fall back to about the previous level, and remain there. Business iu British funds now is quiet, but the Dominions' stocks are meeting with good demand, and prices generally are hardening. But here again profit-taking causes an occasional setback. Gold mining shares continue active, and prices are mostly firmer. The -prospects- of Australian loan conversions continue to be much discussed by financial writers. The consensus of opinion is that the conversions are likely to be effected on satisfactory terms without much difficulty, for plenty of money is awaiting investment. The J. Henry Schroder Company, wellknown merchant bankers, in a quarterly review of business conditions, state: — "There are many signs that there are stores of unused capital seeking investment. Many people, owing to the general lack of confidence, have sold securities and refrained from investing the proceeds. This has been happening on a much greater scale abroad, for both in America and on the Continent thousands of people have been selling securities and hiding the money in safe deposits or turning it into gold bars, with primitive hoarders craving for a bit of metal to gloat over." Woo! Market Cheerful. In spite of the holiday influences in Britain, and the political and financial difficulties of Germany and other - Continental countries, the wool markets have maintained a firm and cheerful tone, with rather an upward tendency for fine Merinos and fine crossbreds. Sales of tops in Germany show a small increase on the preceding week, with a slight hardening in quotations for all qualities. Owing to short supply of raw wool topmakers are running only three days a week. They are adopting a firm attitude. The futures markets at Antwerp and Roubaix are very quiet. Transactions in the last two months have been much below normal prices for al! months. They slightly improved, but at the end of the week eased somewhat. Butter and Cheese. Although 'butter prices cannot be regarded as satisfactory, the consumptive demand is excellent. Proof of this is afforded by the statistics,' which show that, although the total imports in May, June and July exceeded those for the same months in 1930 by 7500 tons a month, cold stored stocks now are lighter than in the same period of 1930. An interesting feature of the market to-day is the difference in price between New Zealand and Australian butter. For a long time there-has been only about one or two shillings' difference in favour of New Zealand. Lately, however, this has increased to about eight shillings. Apparently this 'is due largely to the cessation of Irish imports eince the duty was imposed. Irish butter was largely consumed in Wales and the north of England, and in its absence buyers have taken to New Zealand, which has been assiduously pushed in those districts for eome time.

The cheese market, after a long period of stagnation, is showing signs of recovery. According to the newspaper "Grocer" the stocks of New Zealand and Canadian cheese in England are several thousands of tons below those of August, 1931, and stocks in Canada also are lighter than for many years. Therefore during the next six or eight weeks arrivals of Canadian and New Zealand are not expected to equal the consumption, and a rise in prices may reasonably be expected. ■