FINANCE AND COMMERCE.

Press, Volume LVII, Issue 17103, 26 March 1921, Page 7

FINANCE AND COMMERCE.

WOOL MARKET. important conterence pending. " Tho prospects for the forthcoming /©rth Island series of -vool sales aro ' home freely discussed. Opinions of a verv alarmist nature have been given much publicity of late, nnd these, aciOTding to the statement made, by ai veil-informed authority po a ' U°- > jiinion" reporter on Wednesday, do not lend to stabilise the New Zealand marVot, but ratther to do injury to the ;00l producer. . . Nothing substantiative will be known , bout tho situation of the wool market, s it affects the Dominion as a whole, jntil next week, when two important conferences will be held. The first, which will be held on Wednesday next, will comprise representatives' from various wool brokers' associations, who, it is understood, will discuss the v-hole situation in relation to the wool .market, together with the question of the Dominion wool sales. Meanwhile, it is understood that the Wanganui Bale set down for April 15th has_ been postponed. The second conference is that of representatives of all tihe Dominion producers, which is to bo «rm Thursday, March 31st. Up to the laJb sale, which was held "at Timaru, the market was helpful to ' those farriers who had to quit and take the market value, while others who ,were in a position to hold on, held their wool back, thus giving the smaller man a chance to realise and turn ihis clip into cash. There is no doubt that a very large quantity of wool is being held in the Dominion in flie hope, that jjrices will ' take a more favourable turn. In this connexion it is interesting* to note that many farmers are exercised over tho question as to whether -wool suffers deterioration by long storage. Some qre of the opinion that; the _ staple is inclined to lose its elasticity, and is - therefore of less value. On Wednesday a reporter .approached an expert . of the Agricultural Department for an opinion on the subject. 1 'No." was the triply, "wool does not suffer deterioration by storage provided it is dry when pressed and is then stored in a diy place—board floor preferred, the floor to be enough from the ground to allow a ourrent of air to pass between* Ivhich keeps both thoroughly dry. ftegarding elasticity in wool, , wool always ■i retains its patunal elasticity until it is going through the'manufacturing process dt the woollen mills, when, owing ; to .the drawing process, it loses a fair percentage of its* elasticity;"

f BRADFORD WOOL TRADE. || A GLOOMY OUTLOOK. §'■ (By C»l>V-Ppw» A««oci*tion—CopxrigW.) : (Anstrolim N.Z. Cable &'■ LONDON. March 23. I-- The outlook at Bradford ia mosrfc (gloomy- .Wool firms are failing every week. ; A Halifax topmakfsr is the latest, the < deficiency ' being ' Creditors' meetings are ox daily occurrence. . Some'modest firms are compounding . with their Creditors, and then carrying ;•>. on. Spinners and manufacturers are olos"ifMjhig for ten days at Easter, and aome *t|Mre' closing indefinitely. :|ff v SHIPPING FREIGHTS. OWNERS' REBLY TO ME MASSEY. I ' JXJNDON, March 23. f In reply to Mr. Masaey's complaints ii that shipowners offered him an option tg take all their steamers at "Bluebook ife: rates, which owners state that after providing for interest' and depreciation 5' would leave in loss on new steamers •ft: f and only a pittance on older vessels, - tt)hipownera peint out that running ex- -' ' : .;.''> : penses are tliree times what they wera jfcWore the war, and .the amount of outi ,ward cargo offering is negligible. Thoy inlfln point but that the Coromonwealth W l*State line's refrigerated steamers aro wfiwuwitioned from among enemy ships ~ i. Iwhioh do not pay taxes, interest, or de- ; .ifrefiiation. ~< & Mr Larkin, manager of the CommonWealth Line, interviewed, states that #|ex-enemy ships are subject to interest '|knd depreciation charges equally # wfth J >She other Commonwealth State liners, li'fbut obviously • havei not paid_ taxation, all surplus revenue is credited ;2'to the Stato. " || ■' ( , 7 NEWCASTI£\COAI, ■ OP EXPOET TEAM fk it, SYDNEY,;Maroh 24. « I? I'• A coal-owners' deputetion told tJie b -Prime Minister (Mr that, un>lees coal' was de-controlled, it jwould V •'inean permanent loss of the "South '"J? American trade;*aud would "probably "i* 'prejudice the New Zealand trade. '/i Mr Hughes replied that tfce- Govern*Bient was eager to relinquish oontrol of Vcoal, or any other commodity, as soon if as possible. , " . , , i He added that New Zealand was curt -titled to > 60,000 tons a months after local requirements. were 1 satisfied. • jK\ (Received Mardh 25tli 5 5 p.m V - , SYDNEY, March 25. shipping circles view with satisfaction the strong representations lMde bj trip-various coUierv interests to Mr Hughfe for the de-control of coal export beyond m r . the Commonwealth. : . \\ . , • « Referring to Mr Hughes's attention of P New sluppinE m authority declirea that under de-control P 1 New Zealnrf<r far greater than, pfeviously. - ' v m Mil THE ifEW jEBALAJrtEBIBAEQO. (Reoeived March 25th, 5.5 p.m.) j M - SYDNEY, March 25. w'' meeting of the United ks\ Purebred Dairy Cattle breeders' AasoNation, itwos stated that the Victorian Wf breeding societies, were arranging a petition, and desired. New South Wales to object of mtV' irig removed tM New Zealand '■ on * Ccattlfi/' .~was •. im* •P Pbsad to' prevent the possibility of _mxrodupjng cattle diseases to tho Do- '>• . '•' . ,■ , > The fatter was refeiTea to the execu-. tiT:frfbr early .attention. ' TRADEWIW GERMANY. , STATEMENT BY AUSTRALIAN s- PEEMIEB. {- (Received March 25th, 5.5 p.m.) >', * ? SYDNEY, March 20. , Mr. Hughes "confirmed < tho reported-, ifc ViMJe tif-wheat to Germany,-stating that, ■ k, '''with all tlhe world again trading with |k Geriilany, it was useless for Australia K-i 'to she was" the only nation an Kfeof trade |m|>nitti6d"to i Parliaiiaßat at an early^date.,

DOMINION'S TRADE AND MARKETS.

<mr otm comment, xonom.)

Mr Hughes also announced that Parliament would decide whether he would attend the Imperial Conference. The Hon. AV. F. Dunn, SCate Minister for Agriculture, stated that Germany had been one of Australia's best wheat, customers. Foreign sales had averaged 9s 3d per bushel, free on Board. AUSTRALIAN FARMERS. A FIGHTING (Received March 25th, 5.5 p.m.) SYDNEY, March 25. The Conference of the Australian Farmers* Federal Organisation framed a, fighting platform, including proposals for Dringing the producer and the con- : sumer into closer contact, and for iecasting the Federal Constitution, the promotion of secondary industries, cooperative control of the sugar industry, and extension of the Commonwealth shipping undertaking.

COLLAPSE OF MARKETS. WAIBABAPA RESOLUTIONS. * (press association telegram.) ' MASTERTOX, March 24. One of the most representative meetings of producers ever held in the Wairarapa took place to-day. It was called by the A. and P. Association and Farmers' Union to discuss the freight on meat and wool and shipping, matters generally. . Mr W. Perry, a member of the Board of Agriculture, moved: "That this meeting of Wairarapa settlers strongly protests against any time freight contracts for the carriage of produce beyond the sAifp or ships that may be placed on the loading berths in the several New Zealand ports, and strongly protests, also, against the freights now demanded." ' The motion was seconded by Mr J. C. Cooper, • managing director of the Wellington Farmers' Meat Co., and carried unanimously. On the motion of Mr Hugh Morrison, seconded by Sir Walter Buchanan, the meeting resolved to approve the Government legislation to provide for the establishment of a Board- of Mercantile Shipping, at least half the membership to be elected by representatives of the principal exporting industries, the remaining half to be nominated by Mie Crown. It was also resolved that owing to the small balance left to farmers after ail charges, had been paid, including freezing' charges, the meeting felt it imperative • that an effort should be | made to :obtain a reduction in the freezing charges on meat. Mr Cooper : said that in a few months the agreement with tihe men would run out and a new. basis must be considered. The present rates were excessive. Mr Perry moved: "That this meetwith alarm the collapse of the wool and meat markets, which to a large extent has been brought about by 'tihe mismanagement of the food and produce control in England. The effect on farmers, particularly returned soldiers, ' threatens to be so disastrous that our faith is. shaken as to the sincerity of the British Government in the welfare 1 of New Zealand." The motion was seconded by Sir "Walter Buchanan', who said (he could adduce facts to rflipport the resolution. Mr Perry said that 4 although Btrong, the motion was to the point. The resolution was carried unanimously. , The Wairarapa Provincial Executive <tf, the Farmers' Union decided agaiijst any freight contract with the shipping companies, and supported a proposal for a State-aided shipping line.

REVIEW OF THE SHARE MARKET. , Owing to the general financial situation throughout the Dominion, • the share market is in an unsettled state, considering the conditions a very good volume of business is being done. It is difficult to state what effect the ijew legislation regarding deposits will have on the market. » , . War loan, bearing interest at 4§ per cent, free of tax, is easier in price than it was a week ago, business being done at £Bl 15s and £Bl, as oompared with previous sales at £B2 103 and £B2. \ Attention was flrawn in last week's Review of the Market to the remunerative investment offered by war loan at present prices, but as the remnrks made were misunderstood by some readers, an amplification may be oi 0. The caso was quoted of an invest. :ble to pay income-tax at the preset maximum rate of 7s 6d, in the £, who buys at £B2 war, loan maturing in 1938 at par. The rate of tax mentioned repreterest received, and as the loan is free of income-tax, the saving in taxation must be taken into account when estimating the return to such an investor. At £B2 the return upon the investment is therefore £5- Ss 9d in interest,, plus the saving of taxation £l 13s 9d, or a, total of £7 3s 6d per cent, per annum. Including the redemption at par at maturity, and allowing for saving of taxation, the return per annum becomes £7 19s 2d per cent. ' Soldiers' settlement loan, bearing interest, at 5J per cent, subject to. tax, has. been in demand; and prices have firmed during the week. Sales have taken place at £BB and £B9, with furat £BB 10s, and sellers at £B9 os. The Bank of Australasia has announced the intention to issue to shareholders the remaining unissued shares at £6O, but full details of the offer have not yet-, been received. The shares are still cum a dividend of £2 12s per share payable next month, and have been offered during the .week at £BS, with buyera at £B4. Bank of New Zealand (shores have not shown mijch change, and are quoted by; buyers, at 42s 9d, with sellers asking 43s 3d, recent sales having been made at 42s 6d. Bank of New South Wales have eased again, and have changed htuufc at <£3l, after business at higheF prices. Union Bank are also a little lower, with buyers at £ll ss, and sellers at £ll ,8s 6d, as compared with sales at £ll 20s during the previous week. The annual report and balance-sheet of Huddart Parker, Ltd., are referred to elsewhere in this column, and disclose a very successful year, with an increase in the dividend rate from. 11 per cent, to 14 per cent* per aamum. There have been recent sales, cum the, dividend, at 403 and 40s 6d. The dividend was payable in Melbourne on the 24th inst. . No business has b.een reported in N'.Z. .Refrigerating Company shares for some time past, and sellers are quoting the partly-paid shares at los 9a, with no declared buyers. * Manning's Brewery shares have changed hands at £3 12s 6d, with further sellers .at £3 15s. ' are offering' Beath and; Comshares at 25s 63' cum dividend, nrithout success.. A of Is per share is payable on the 31st inst. _ ► There has been considerable activity in. Mfc Lyell shares, and during the sast fortnight.prices have risefi-'from I.ls lid-to 13s 7d. with further buyers

at the latter figure, and sellers at 13s Bd. "Waihi's are offered at 28s 6d, but buyers are scarce. . Waihi Grand Junctions have sold at 7s 3d, with buyers at 7a 53, and sellers at 7s 7d. . , Talismans are wanted at 3s 9a, witn sellers at 4s, as compared with sales during the previous week at 4s 4d. The Stock Exchange is at present closed for the Easter vacation, but will reopen on Thursday next. GENERAL NOTES. A noticeable feature of present-day business is the altered condition imposed by shippers in various parts of the world. Until recently, when a Xew Zealand merchant cabled for goods they were usually shipped, and drafts drawn against documents, Isow, ! in nearly all cases, letters of credit ,are demanded by the shipper be-fore shipments caj* be made to New Zealand and (Australia, owing to the inability of most foreign banket to negotite drafts on the oversea Dominions. Recently advice was received by cable that some of the British banks could not take drafts on the Dominions ae they had no funds available for this class of business. A letter of credit is therefore required, not because of any doubt as to the customer's financial stability, but because the New Zealand issuing the credit has to provide the funds for tho shipper against deposit of his bill of lading. Letters of credit being difficult to obtain at present, there 13 bound, for this reason alone, to be ft substantial drop ini imports, quite apart from the fact that there are 3 heavy stocks of certain lines in hand. So far as grocery stocks are concerned enquiries show that they are not now excessive. Indeed, supplies of some commodities are' beginning to run short, and the previous surplus may before long become a shortage. According to a recent cable message in Australian papers the quality of the bulk of the frozen meat offering in London is "not of j the best," and the large volume of uncm- | ployment and the great catches of herrings were factors in depressing the market. Nevertheless, a difference of from 3d per lb fotf wether mutton, which i 3 the maximum freezing rate being paid at present in the Dominion, and 9d, which is the wholesale price reported at Home, is altogether out of rear son, and shows that the New Zealand grower is not getting the value for his stock that the position warrants. Probably freezing exporters are squaring up" on their high lamb prices at the 'beginning of the season-. The Commonwealth wheat crop ie not' coming up to estim<ite§. It was estimated! that the yield would be* 130,000,000 bushels>but the opinion now is that the figure will be about 6 per cent, lower. In other -quarters it is said that fhe yield will not go" beyond 125,000,000 bushels, of which about 92;000,000 will be available for export. In Victoria "take all" has caused a reduction in the estimate of from 42,000,000 to 45,000,000 bushels to 38,000,000. A. London cable of ibe 13tH infli. in "the Australian papers stated that, "the Scottish, iion and steel .manufacturers' report that the ■week's business was tho worst on record.' Cdntinental quotations were. much below the home quotations, and there was no tive to closing down -unless wages and the coat of raw materials were greatly reduced immediately." Advices from London of mid-January Btate that one of the principal reason® for the decline in the price of linseed and linseed oil in London is the promise of e, large yield o£ seed in the Argentine. A recent official estimate of the out-turn places the crop at 1,082,000 tons, or about I per cent, moret than the'liberal, yield-of-'the preceding year. Taking this forecast as'a 'basis, at least 950,000 tons of linseed will be available in, Argentina for export and, even with a low estimate of 160,000 tons from India, - the aggregate of 1,100,000 tons, will he more than America and Europe can manage.- Buyera therefore have pursued a hand-to-mouth policy, and with .the reduced buying power of the Continent, the .general depression, has become more pronounced in the past two months. A remarkable shrinkage has taken place in the Continental seed consumption during recent years. The average for the seven years 1914-1920 works out at 855,000 tons, as against an average of 942,000 tons for the 1907-13 period. Steady progress is being made by Cadbury Bioe., Ltd. (who have a Melbourne branch), J. S. Fry and Sons, and James Pascal, LW., with the election of the large ■ factory" at Claremont, near Hobart, at which these English .companies are to manufacture cocoa, chocolate; and confectionery. The first block of the factory, which will eventually cost £200,000, is expected to bo'finished in time to permit of a commencement being made with production in aljout eight months. A 1 London trade. journal remarked towards the end of November that chocolates and all classes of sweets should be considerably l cheaper in'l92l, and that although the gradual marking* down of confectionery was ini-" mical to the placing 6f really large orders, the tendency towards cheaper goods was the only one. that could ■ rehabilitate .ne trade -in both the Home and the export .markets. Private cablegrams from Colombo showed that at a' sale about a fortnight ago there was a strong advance in the better qualities of tea. Good tea, which was already high in price, advanced by from 20 cents to 30 cents, and conlmon teas and all leaf grades advancefl 10 cents.- One message stated that heavy frosts had been experienced uj-the up-, lands, "particularly in Nuwara'Klyia, and that production had been restricted, while in the low country, droughty • conditions, had prevailed for some; time.:' The message added that it was not, expected that---there would he any relief as .regards larger supplies ofgood teas for'some time to. come. » Progress during .the last year in reorganising the 'trado' of Sheffield, although not so great as could have been hoped, was nevertheless considerable, and goes farther to place manufacture on a pound modern basis. The "British Trade Review" asserts that when plana now in course of development mature Sheffield will be in a position to compete against the world in quality, output, and price.' What is being aimed at is the elmination of unnecessary patterns, with standardisation and the concentration of factories \ipon a limited range of goods. Such an ideal necessitates the substitution of engineering methods for the present handicraft system. Large, individual output, far beyond anything attained- in the pafet, is essential to justify the installation of costly mechanical plant and the adoption of modern selling organisation. The existence of markets capable of absorbing great outputs is proved; all that is needed to obtain the trade is to be in a position to supply the goods at competitive prices.

GENERAL MERCHANDISE. ' .Early in the week business was quiet, bat later, merchants report, it picked up owing to the Easter demand. , The clewing up of the trouble on the wharves has allowed of the discharge of several oversea steamers on which were a number of lines that were urgently required for local trade. The distribution of the sugar from the. Kanna and the Waitomo, together with a small parcel now discharging, ex Manuka, has somewhat relieved the sugar _ situation. Unless, however,* further supplies arrive next week, the position will again become acute. The last Java sugar coming to New Zealand landed this week. x No more can be looked for from this 60urcev <ls the price haa so advanced oe to make the landed cost of thesugar here over £6O-per ton. The previous lower prices quoted were due largely to the collapse of a large sugar company in Jaya. The recovery however, was ' co sudden that most New Zealand merchants were. unable' to get their orders confirmed before the market rose, and they were shut out. Bad the Java market remadned below the price of New Zealand made sugar it was expected that it wtrnld later affect, the latter, but as it is quite £lO higher than the local article and likely to go still higher,' the last hope of obtaining cheaper sugar in New Zealand disappears. Experts do not now look for lower prices when the pfesent Government control period ceases on June 90th next. ■lt is .true that Australia has a bumper orop this year, but this ia not likely tcr effect the New Zealand position in any way. The cost of manufacture there is very high, and in addition there is a heavy excdse duty. Sugar in Australia ia controlled 'by the Commonwealth Government, who prohibited private importations. This past year they have had to import largely from the "West Indies and Java. It is stated that by these importations the Government lost a large sum of money, as the fixed price at which sugar was sold in Australia was under the coet <4 the sugar imports Having gone through a period oi acute shortage last year it is believed that Australia will' guard against a Eimilar experience this year, and will prohibit the exportntions of sugar. The supply of 250'b vestas improved with the arrival of a consignment from Wellington. I Stocks have been absorbed by grocers and if further supplies are not forthcoming early another shortage will follow The system of distribution is to ship to each centre in turn, and after Christcharch has had a parcel it has to wait until all other centres have received their supplies before another .shipment comes here. During the pAst week various quotations have been issued for imported wax candles. Many grocers have not operated as they are waiting to eea how the New Zealand-made candles would meet this unexpected competition. Information is now received that the' local .make of wax candles will be available at an early date, at prices which will fully meet the quotations recently issued for (the imported article. ' Another advantage is that in purchasing local candles the grocer can have any quantity from one box upwards,

eome cases only 14oz packets. Stocks of preserved ginger are very -ow. Sowers to Hong Kong issued cable quotathe *eek, supported by a demand for an irrevocable letter of credit at.sight. It is very doubtful if this 1««« «n £> obtained Tin which case no suit, as the ginger cannot be chipped until the credit is established. <n Li»ht cigarette tobacco receded slightly m pr&tt the week. The V*g™ gs* tobacco is uncertain, and as a drop in price is quite within the bounds of ln tie -near future, grocers are .ouywg caufously Plug Havelock is, still in very short supply, and it looks as if he demand for this lino has exceeded the output. The supply of rusks is again short, and merchants are unable to execute orders. Growers are advised to call for samples of rice Then very cheap quotations are tendered. There is in the" country at present a quantity of very inferior rice containing badly discoloured grains. This class ofnee xs being quoted very cheap but even then it is too poor for the general grocery trade. The focal tea market is firm, ™* «]*- ward tendency. Recent sales m.Ceytatora /ecorded substantial advances in prices all round. Hardly any tea at all is coming to New Zealand, and with consumption always coin* on, the importations will have to start again, which will mean an advance on present local selling prices before long. Salmon is selling freely at present, liooai stocks are sufficient to meet The sa."o market advanced about ±J per ton during the week. Somo merchants have not received supplies for some time and nave had to rely on previous importations to Keep them going. HABDWABE, ETC. There is still a depressed feeling in the trade, due largely to lowering stock prices causing a curtailment of the purchasing powor of the farming community, and, naturally, bv the financial stringency. The possibilities are that this condition will continue tor some time. However, experionce points to these happenings being passing phases, fur--iases for the general requirements of the community mu,st recommence sooner or later. The general experienco is that such a condition of affairs as now exists causes a feeling of pessimism, but this is not tie feeling m • the hardware trade at present. The belief is general that before many months prices will rise in quite a number of lines, asi the drop in price in many lines was not justified by the position of the English markets, but were mainly due to heavy local stocks, aided by the fear that these etooks may not bo realised on before a" price reduction sets in. Importations have practically ceased, and holders who. are not hurrying to realise on their existing stocks are likely to reap the benefit. , , ... Present quotations for corrugated »on are: Orb brand £6O per ton, other brands £&> per ton. „ "White lead has slightly dropped in price, and is now quoted at £75 for American and £35 for English. ■Wire nails are quoted on a £46 per ton basis. . - Raw oil ia now quoted a.t 8s ed per gallon, boiled 9s. Fencing wire has also slightly deckned, and is now quoted as follows: —No. 8 black £SO per ton, galvanised No. ft £35, barb £45. There is no advice'of American wire products having dropped in prices, and the figures quoted are mainly duo to an excess of stocks being available here. Tho probabilities aro that when present stocks; ore cleared prices will again firm. HUDDART-PARKER, LTD. The ninth ordinary general meeting of shareholders in Huddart-Parker, Ltd., was held in Melbourne yesterday. The report and balance-sheet for the year ended the 31st December, 1920, shows that tho net earnings for the year amounted to £112,714 17s lOd, making with the balance of £12,858 lis lid •brought forward a total of £125,673 9s 9d available for distribution. A dividend of 8 per cent, and bonus of 6 per cent, has been paid on the ordinary oh ares for the yearj as against a dividend end bonus totalling 11 per cent, for the previous year. The dividend on the preference shares was 6 per cent., and the total amount paid in dividends was £IOO,OOO. An amount of £2938 18s lid has' been transferred to reserve fund, leaving £22,634 10s 10d- to be carried forward. The reserve fund has been augmented, in, addition to the amount shown above, by tho transfer of certain provisions accumulated in previous years, and not fully drawn upon when adjusted. The reserve fund now stands at £410,000, as compared with £350,000 at the end of the previous year. The reserve for contingencies nos been in- . creased to meet the fall in values in connexion with the company's investments in bonds and inscribed stock, and is now £?30,384 10s 7d, as against £292,494 7s .7d a year ago. The insurance fund, war and marine, amounts to £183,486 9s Id, as compared with £164,050 Is -9d at the end of the previous financial year. The business of tho • Metropolitan Coal Company of Sydney, Ltd., has been purchased, and it is proposed to fcrm a new company to carry on the undertaking. Among- the assets, steamships, freehold and leasehold properties, etc., appear at £716,856 5s id, as against £735,378 19s 6d, and Government debentures and fixed deposits, etc., at £1,208,991 13s sd, as compared with £1,065,026 17s 2d a year ago. The paid-up capital of the company ia £1,000,000.

IMPORTED FOODSTUFFS. (SPECIAL TO ''THE' PRESS.',')

- DUNEDIN, March 24. Most imported foodajurls are declining in value' or showing a tendency in that direction. Canned fruits are amongst the latest to drop a little. Dried fruits, too, are a shade easier, bait advices from Australia, from which New Zealand drawa largely for such goods, are to the effect thaA the currant crop is not satisfactory, so there may not be much of. a decline in' that commodity. American dried fruits are inclined to keep higher, principally owing to the rate of exchange. Probably, however, we shall soon be relying less on the American supply, since Australia da coming more and more into the selling market, and there ia a likelihood of .the Mediterranean exporters resuming their relations with New Zealand. Tea seems to' have receded in value es far as it is likely to go for some time.

CONDITIONS IN THE UNITED STATES.

Under date February 7th, Messrs John Dunn, Son, and Co., report on. the general conditions in January of trade and finance in the United States, aa follows: '•

While business generally haß been drifting during the past month, all authorities agree that there has been a gradual, though slight improvement. Foremost is.the slow retur»*ng of confidence which at present is tempered with caution, but as each week passes is gaining in assurance. * An easier tone is discernible in the money market, although actual rates have not fallen to any greatextont. The banks are working into a stronger'position, and the domestic credit situation shows marked improvement. Pracof the foreign exchanges are higher, the advance in sterling and francs being' particularly marked. Failures are less important, and in some lines of trade, such as textiles and leather, where liquidation was most severe, activity is being resumed. Prico reductions are continuing, but now more gradually, 'and while business is largely in small lots for immediate requiremonts, the volume ia by no means inconsiderable.Liquidation of retailers' stocks pTocesdsbut slowiy, and has been retarded by the unusually mild weather prevailing. The small merchants as a class seem to bo taking their time in this regard, and are disposed to rid themselves of goods now on hand quite thoroughly before replenishing. The proscure of banking advice and publio opinion Beam to have little effect in hastening this much needed movement. Fear is being expressed by some that the period of re-buying may be too long delayed, and finally develop to such importance that a secondary period of inflation may be brought about. It is evident that the period of trade adjustment is by no means completed, Borne commodities having declined in value to what seems to be bed-rock prices; while others continue to bo hold at 100 to 200 per cent, above pre-war levels. Wage reductions have only begun and have far to ' go, but until such discrepancies in commodity values are at least partially overcome,, and until the ultimate cojisumer is receiving the full benefit of these decreases, wages cannot be brought down to any great extent. The length of time required for these readjustments to be completed, and for rates of wages to reach a correspondingly lower level will probably be the "measure of the duration of the present period of business depression. The statistics of the country's foreign trade for the month of December dhow that tho volume of exportß continued during December on an enormous scale, despite the general conviction that a falling- - off would be shown. In fact, the continuation of exports of such value is hard to understand, in view of the financial conditions known to exist during that month; undoubtedly they reflect largely a windingup of old contracts. Imports make a sorry showing, _ with the result that the export balance is the largest recorded, 'with the one exception of that for the month of June, 1919. TEe fallirtg-off of imports covers pretty much the whole list. As regards food commodities, Bradstreet's "food index number," based on the prices of 31 articles used for food, now stand Pat 3.31, which compares with 3.47 last month, and with 5.10 on January 29th, 1920. An unfortunate but noteworthy feature in the present situation 13 the slowness with which these reductions are passed along to the consumes. *

Quotations for sterling exchange have advanced by leaps and bounds during the past month, as have those for French francs, and to eome extent also Italian lire and German marks. Trading has been active with sensational fluctuations. Speculation is much in evidenco and forced covering of short contracts has been a feature of the rise. A scarcity of export bills, together with an casing, of the money market, have bees favourable influences. Groat interest was taken in the plan of the League of Nations Committee recently published, which provides for a form of security to be used by merchants of too impoverished countries of Europe as a basis of credit for financing imports. ' This security is in the form of bonds secured by pledge of property, and guaranteed by the relative government, the whole transaction to be supervised by a commission appointed by the League. At the same time vague rumours were also current of a well-defined movement, both here and abroad, for the alleviation of existing international credit difficulties. The prospect of an early, definite arrangement of the German indemnity was also favourably regarded, as it is felt that once this difficult problem is disposed of an important milestone will have been passed on the road to more stable conditions. ,

As regartb bills on Australasia, there is no improvement in tho restrictions laid down by the bamks, and it is practically impossible to negotiate such bills at this time. Much importanco is attached to_tibe expectation of shipments of giain and other produe© from Australia and New Zealand, and it is hoped that the exchange so created will do much to correct the present unfortunate conditions. There has been almost no change in _tho position of' the iron and steel market during the last month, although some of tho independent mills that had shut down during tho Christmaw holidays are reported to have resumed operations. In infest cases the men h-avo gone back at lower rates of wages. In general the position is that the - independent mills are running at 'very nruch below their capacity, while the United States Steel Corporation 'is operating its plants at something liko 90 per cent, capacity; wages, on the average, are gradually coming down, but the industry as a whole is very dew to •make changes in wages, and: this will bo particularly difficult until the Steel Corporation begins to do the same. AUCKLAND MARKETS. ' (SPECIAL TO "THE FItESS.") AUCKLAND, Maroh. 24. Wholesale houses this week have been very busy in ail endeavour to clear orders on first of month account before olosing for the Euster holidays. Orders have been of an ua. usually heavy nature, which must be attributed to the fact tbiat retailers have allowed their stocks to run as low as they daTe. Hardware—The market generally contiuuea jan active one. Prices do not show much ohange-. Anticipations of lower ooata of timber locally,are not to be looked for; in fact, should a higher award be given to carters higher costs would allow. A comparison with southern costs of timber Bhow Auckland prices to bo 'about 10s per 100 ft the cheaper, eo that prospects for oheaper building me xemot®. Potatoes —The looa.l market for potatoes has declined owing to heavier Buppliaa having been sent in by farnfera, who aire anxious to otrit their stocks before the southern importations come to hand in quantity. Already one lot has arrived, and sold at £8 15b per t<m. Tho local quotation is £9 15s to £9 per ton. Onions—The local market remains dull, aa consumption as not heavy. Local are selling at da per owt. Maize—The market Jiaa declined owing to heavy supplies. Sales arb being mad© at 6s in wholesale lines on the wharf. Oata—Tho . market is dull at 4s Gd ppr bushel, fltore. Chaff—Best local is Belling at £8 to £8 10s piv ton, ex stare. Wholesale current prices axe:—Creamery butter. 2s 14d per lb <less rebate for prompt cash); farmers' separator, le 9d pear lb; factory cheese, first grade Is Bid per lb, export size 1b 2id, loai Is 6d per lb; dairy, cheese, Is 3d per lb; hams, Is Id per lb net; bacon, Is Id per lb net'; lard, bulk Is Bd, pat® Is BJd; margarine (bulk), Is 4d), pats lfl> 6d; prime honey, lOd; eggs, 8s 4d per dozen; flour, £22 10a (less discount of 21 per oent. per ton in 2001b sacks); rflSrps, ilO 10s; brail, £7 10b; oatmeal (25'e), £22 per ton.

PRICE OF POTATOES. ■The Central Council of the South Island Potato Growers' Association at Temuka considered prices again on, Thursday evening l , and in view of tho larger quantities of potatoes offering, decided that the authorised price for April-May sales during the ensuing week should be 105s.

STAKR-BOWKETT SOCIETY. The Christchurch Starr-Bowkett Building Society on Thursday evening held a meeting: in (the Chamber of Commerce to dispose of two appropriations of £IOOO in Group No. -1, one by ballot and one by sale, and in Group No. 2 an appropriation by sale. The ballot resulted in ball No. 359 being drawn, the shares in the cluster being held by two members. The sale in Group No. 1 realised a premium of £55 per £IOO, and the sole in group No. 2 a premium of £6O for £6OO, and £56 for £3OO was realised. There was a large attendance of members.

~ BANK OF ENGLAND RETURNS,

(By Cable—Press Association— Copyright.) (Australian and N.Z. Cable -asocia-tioa.) (Received March 25th, 11.5 p.m.) LONDON, March 24. The Bank of England, returns -for the week ending March 17th afford the following comparison with Uiobo of the previous March 17. March 24. Coin and bullion .. 126,513,000 126,625,000| Reuerve .. •• 18,669,000 17,241,000

Proportion of , reserve .„„„ to liabilities, p.o. 14.60 18.90 Note circulation .. 123,106,000 129,535,000 Government deposits 18,910,000 22,982,000 Other deposits .. 107,259,000 101,169,000 Government securities 23,624,000 24,000,000 Other securities ..102,077,000 101,022,000 Short loans, 6J per cent.; three months bills, 6i per cent.;. Treasury bills, 6 per cent.

GOVERNMENT SECURITIES. The following are'the latest for Government securities, with a comparison with those ruling last week:— _ _ .

FOREIGN EXCHANGE RATES. LONDON, March 24. The foreign exchange rates on London afford the following comparison:

SHARES. LONDON: March 24. Talisman, 5s 9d. DE-CONTBOL OF MEAT. (Received March 25th, 5.5 p.m.)

LONDON, March 24. The Food Controller announces that imported meat will be decontrolled from March 29tb

LONDON'S MILK SUPPLY! LONDON, March 23. The dairymen are reducing the retail price of milk in London to lOd a quart.

THE BUTTER MARKET. LONDON, March 24. The resolutions of the Australian Dairy Pioduoe Conference have not caused muoa comment in! Tooley street, as the quantity-of butter likely to be shipped is regarded as noimportant in view, or the European output:' but same leading importers consider It wouM c 9 better if control was completely removed, allowing a free market «± the earliest possible moment.

ENGLISH MARKETS. LOXDOK, Match 24. per lb. Copra—March-May shipment, £26 per ton. Hemp—March-May shipment, £43 per ton. Jute—March-April shipment, £33 per. ton. Rubber—Para Hid per lb, plantation 19jd per lb, smoked 10£ d per lb Linseed' Oil->£2B 10s per ton. Turpentine—soi per cwt. "Wheat—The market is inactive. Flour is in good demand. Australian, spot, 68s. Barley—The market is quiet A parcel of Australian Chevalier, Mhrch shipment, was sold at Antwerp at C2s. , Oata—The market i* firm. Peas and Beans—Tho market is quiet, and prices are unchanged. Sugar—The market is 'firm. Granulated 695. . *

MELBOURNE "WOOL S&LES. ' MELBOURNE, March 25. The March series of wool sales baa concluded. There waa more competition from Continental buyers for the finor descriptions of croEsbxeda that wore • lately at the recently reduced' le-vel. MELBOURNE MARKETS. MELBOURNE, Maroh 24. Hides—Largo catalogue® were offered. Brices, excepting stcuta and . kips, - declined Jd to Id. Barley—English, te to 4s 4d; Cape, •3s 2d to 3s Ed. Oats—2s (id to 2s Bd. Potatoes —£6 15s to £7 «• Onions—£4 10b to £5. BENZINE.AND KEROSENE. SYDNEY. March M. Judge Beeby, at the Profitcmng'Court, >*• duoed tho price of benzine arnl kerosene 1b pet cas«. OHRISTOHURCH STOCK EXCHANGE. THURSDAY'S TRANSACTIONS."'

"WHEAT THRESHING KETUfeNS. The wheat threshing return for»the period ended' March 33rd lis as follows :■— Threshing returns received to date,- 801,968 bushel*?. Contract* to purchase good milling! 1,007,460 bushels, tow' wheat 11,457 bushels. Amotuita paid to-former* .through Gowrnmenrt brokers: £122,633 IBs 4d, ropresentitfg 807,718 bushels.

LIME. . , The Mount Someru Lime and Stone Co., Ltd., having installed more power and oruening plant, are now in a position to «nppiy Carbonate of Lime, for immediate delivery. Order- for delivery, now,, and save d&appointTHE MT^'SOMERS'LIMB AND STONE CO., LTD., 178 Caehel street, Chrißtohuroh. 'Phone 4168. Box. 637, Christchurch. 4

' Last week. This weelt. £ B. d. £ a. d. 2J per cent. Imp. Con. 48 0 0 48 10 0 5 per carat. Imp- »ar Loan 87 0 0 87 2 6 84 per cent. Imp. "War Loan •• •• 85 2 6 85 5 0 5J per cent. Cwealth Loan ■• •• 97 5 0 %1 2 6 5i per cent. O'wealth Loan . - 95 17 6 96 2 6 ..J?ew scrip, 103 discount. N.S.W. 4'«, 1938, Jan.--July •• ••. N.S.TV. 31'a, 1935-50, Apn f 74 12 6 75 0 0 Jan.-Jnly 60 0 0 60 2 6 N.S.W., 3'e, 1936, Apn'October G4 10 0 64 10 0 N.S.'W. 5J'b 9S 5 0 93 5 0 Sr.SAV., 6i> •■ 99 17 6 100 0 0 Vu. 4'a, 1921-8, Jan.July •• •• 84 0 0 84 5 0 Vic. SJ'k. 1929-40, Jan.July •• _ ■• 61 7 6 61 7 6 Vic. 3"s, 1929-49, Jan.July* •• •• 56 2 6 55 15 0 Q'land 4'«, 1924, Jan.July •• „ •• 88 7 6 88 12 6 Q'knd 8i'4, 1921-24, .Tan.-July 87 15 0 87 0 H Q'land 3's, 192247, Jau.July, •• „ •• 64 f 17 6 55 0 0 N.Z. 4's, 1929, May- » Nov. .85 0 0 85 0 0 N.Z. H'e, 194", J*nJuly 69 0 0 69 17 6 N.Z. 3'a, 1945, .AprilOctober 57 12 6 57 15 0 S.A. 3J's, 1916 or after 66 17 6 67. 0 0 S.A. 3's, 1930, Jan.July •• T •■ Ta?. We. 1920-40. Jap.49 0 0 49 0 0 July Tas. 3's, 1920-40, Jan.G8 0 0 68 0 0 July •• ••' 60 q o 60 0 0 W.A. Si's, 1920-35, May4 July - , - 69 0 0 69 5 J VT.A. 3 : s, 1915-35, MayNovember . ,67 0 0 67 5 0

1 « Par. 1 (Paris (fr.) .. 23.222 SliWMl' lar. va. 56.32 I CliriBtiania (to.") .. 18.153 1 Stockholm (kr.) .. 18.159 24.47 16.99 24.42 1G.92 Montreal (dol.) .. . 4.60 4.47 4.46 New Yprk (dol.) .. 4.86 3.92 - ' 3.92 "»kohama (yen) .. 24J 20Jd 29}d 28jd Hong Kong (dol.) .. 33J 28Jd . Berlin (mark) .. 20.43 240 246 Calcutta (rpe.) 10 to gold eov lojd i5ja

Sales reportedManning's Brewery, £3 * ' LATEST QUOTATIONS. Buyers. Sallw* £ «. d. 4. * r d. PEBENTURES— N.Z. Govt. 6 per cent. 89 10 Bonds, 1927-!) — 0 N.Z. Govt-. 5i per cent. 88 10 Inscribed, 1933 0 — N.Z. Gott. BJper »ot. Bonds, 1938 8$ 10 0 89 5 0 BANKS— ITew Zealand' .. a » o a * o Union of Australia ■■ >% 11 0 0 11 8 0 ' P. and O. Dd. Stock ... 810 0 0 FROZEN MEAT— U 6 Canterbuiy .. • — 0 N.Z. Refrigerating. (10» 0 Iff paid) .. r— 9 WOOLLENS— • 0 JO Kaiapoi (10s p»id) .» BREWERIES— 0 Manning •.« . »« — 3 IS 0 UMBER— Leyland-O'Brieii .. MISCELLANEOUS— 1. 9 6 — a Beatk and Co. («umdiv.) 1 fi . Cant. Farmers' Do-op. 2 12 1 1 (Timaru) ... — 6 Cant. Publishing' Co. .. — 0 Henry Jones Co-op. 1 15 (Melbourne) - —• 0 Maion, Struthers (£1 pd.) • — 1 6 0 Mason, Struthens (4s pd.) - — 0 4 0 N.Z. Farmers' Co-op. • (£5 paid) .. $ 0 0 S 6 0 N.Z. Farmers' Co-op. a.i (£2 paid) .. Hsyward'a .Pictures — 2 o ie 6