BRITISH TRADE REVIEW.

Auckland Star, Volume LXIV, Issue 184, 7 August 1933, Page 4

BRITISH TRADE REVIEW.

MONEY MARKET BUOYANT.

GILT EDGES FIRM

PLENTY OF CHEAP MONEY,

(Received 0 a.m.)

LONDON, August 5,

The London Stock Exchange has been under the influence of the holidays, and business has been far from brisk, but the tone has been good and prices in all sections well maintained, gilt-edged stocks being especially firm. The success of the Australian conversion loan had a good effect and the wonderful response to the Canadian issue of £15,000,000 on the first appearance of that Dominion on the London loan market since 1915, lias further improved the sentiment. Usually when gilt-edged stocks are firm industrial shares are neglected, but lately this has not been the case. Equities, with Wall Street more steady, have been well supported, and gold mining shares have been very strong, several Australians showing good advances. Rubber and tea shares also have been active.

Conditions on the money market are very easy, with abundant supplies, as shown by the low interest rate on the Treasury bills allotted yesterday. This was the lowest rate, in the history of the Treasury bill system, which dates from 1877.

Apple Trade Bad. The apple trade has gone from bad to worse, and the prices realised recently probably were the worst on record. A few v-.rieties, like Granny Smith, Rokewoods and Yates, have done fairly well, but others have been difficult to sell, especially Tasmanians, of which many were overripe. They met competition from heavy supplies of soft fruits, especially plums and greengages, which are selling very cheaply.

Oranges have been in enormous supply. English apples, also, are being marketed and sold at what one broker described as ridiculous priecs. So there appears to be little chance of any recovery in prices this season. There are still about 340,000 boxes of Australian apples to arrive, but New Zea-lands-are finished.

Butter Prospects Good. The improvement in the butter market, which began a month ago, is maintained, and prospects appear to be more favourable than for a long time. Cold stored stocks still exceed 1,300,000 boxes, but consumption is pood and, with prospective arrivals decreasing, importers generally are taking a hopeful view of the future. One of the leading firms in its report says:—"As arrivals of consignment butters from now onwards will be on the small, side, . and the available stocks are well sold up, future supplies will have to be taken from cold store by speculators who at present are not prepared to offer much at the present prices." As an illustration of the cause of the recent low prices this firm points out that the total imports of butter in the season 1932-33 amounted to 4-13.064 tons, compared with 278,390 tons in 1925-26, an increase of nearly 60 per cent. Mr. Arthur Hyland, director in London of Australia's trade •publicity, in a letter to the newspaper "Grocer," effectively replies to suggestions made in Parliament that Australia, by her export bounty on butter, is unfairly competing against the British dairy farmer. Mr. Ilvland say.s Australian butter receives no bounty. The seller of Australian butter does not fix the price in London, but has to accept the market price. Mr. Hyland says he cannot understand why attention is not directed to other countries,' including foreign, which send far more butter to England _ than does Australia, and some who sell it at appreciably lowep rates than Australian imports, which, in 1932, comprised only onefifth of the total imported into Britain.

Position of Wool. Mr. Devereux, London representative of the Australian Wool Council, reports as follow:—The .general position shows signs of gradual improvement and returning confidence, although events in the United States are being watched with some anxiety, and most markets are beginning to bo affected by holiday influences. * Machinery activity in Yorkshire is well maintained. The recent increase in Customs duties on German yarns is expected to affect export business in England, France and Belgium, though the German demand may be stimulated. Sales of tops in Germany continued on a reduced sale at slightly lower prices. Trade in France and Belgium is rather quiet. Recent declines in futures markets amounting to abouf ten per cent over tlilast three weeks have had a disquieting effect on all Continental centres, but futures are now steadier.