PEPPER MARKET.

Auckland Star, Volume LXVI, Issue 35, 11 February 1935, Page 7

PEPPER MARKET.

Reason for Failure of Attempt To "Corner." IGNORANCE OF SPECULATORS. (Received 1.30 p.m.) LONDON", February 10. The "Sunday Observer" says that the attempt to "corner" white pepper collapsed largely because it was engineered by outsiders speculating in a commodity on which they were insufficiently informed and apparently did not realise that if the difference in the prices of black and white pepper were pronounced enough, it would be profitable to convert the black to white. A problem is -the orderly marketing of four years' normal supply which has now accumulated in London. J. F. Adair and Company, rubber brokers, were "posted" on Saturday. They state this is not connected with the pepper pool, and that they acted in good faith as brokers' agents. The rubber market on Saturday was not affected and closed firm.

The "Daily Telegraph" financial editor says that following' the compulsory winding up petition against the firm of James and Shakespeare, Ltd., a firm engaged in metals, but which is stated to have endeavoured to effect a pepper pool, arrangements have been made to take over their open position in metals. The amount involved is 7000 tons of copper and 1435 tons of tin. These commitments have passed into strong hands. Copper, consequently, was 3/9 per ton firmer on Friday. The cash price of tin rose 3/9 for forward delivery, then fell G/3 owing to the abnormal technical position. The banks have decided to assist all but two Mincing Lane firms in the pepper crisis. The moratorium has been extended until Monday, when commitments approaching £2,000,000 must be settled or failure admitted. The price of pepper is now nominally -/3 a lb. It is estimated that the stocks in the pool must be offered at well below 1/ a lb if they are going to be sold.