BRITISH TRADE.

Press, Volume LXIII, Issue 19170, 29 November 1927, Page 10

BRITISH TRADE.

PETROL, RUBBER, AND TIN. {WBirriH JOB THX PRESS.) By Commercial Expert of the London "Economist." Synthetic Petrol and Mineral Oil Producers. The oil BUaro market of the London Stock Exchange bears eloquent testimony to the troubles of the oil industry. Public interest in this section of the stock markets has declined to very small proportions, and sharo prices ate very near tho lowest levels touched this year. The chief depressing influence is, of course, tho over-production of oil in America. A contributory factor is tho petrol "war" in this country between the combine companies and the independent companies. Alore recently, however, a third influence is in some measure darkening the outlook. We refer to tho manufacture of synthetic petrol in Germany. A month ago we briefly alluded to this development, but in tho meantime fuller information has •been made available. It is expected that tho German petrol will be placed on the world's markets in the spring of next year. In Germany thore seems to be much optimism regarding the prospects of thi9 petroL In any case, it would appear that the importanoe of the manufacture of Kynthptic petrol, from the standpoint of the producers of mineral oil, has liecn somewhat exaggerated. In the first place, it seems clear that the producers of mineral oil are fully alive to the situation. Tho Standard Oil Company is maketing the German Synthetic petrol, while tho _ Royal Dutch Company, according to its last annual report has a financial interest in a synthetic process. In the second place, the supplies of mineral oil are jiot so limitless that there is no concern regarding future supplies. On the contrary, in America, which sup-: plies 70 per cent, of the world's petrol, discussions are proceeding with a view to conserving oil supplies. It is felt that there is a grave disregard of future supplies, and legislation to effect conservation is not outside the limits of possibility. The Bubber Outlook. There is a rapidly growing interest in the rubber world. First, the rubber restriction year is drawing to a close; and secondly, Mr Erio Millar, who is recognised as a leading authority on rubber, has reviewed the position of the industry in his annual speech before the shareholders of Harrisons and Crosfield. Despite the ups and downs of the rubber industry, Mr Millar has never taken a gloomy view of the commodity; and this year his optimism is hardly less conspicuous. He admits the increase in production, tho result of "overassessments in Malaya and Ceylon" and "substantial smuggling out of Malaya." But he Bees certain favourable factors. It must be generally agreed, he says, "that the 1927 absorption of crudo rubber is eminently satisfactory"; and he observes signs pointing to an increase in consumption. Be declares that the existing London stocks ore "not too large" and concludes that we shall move in the right direction "by degrees." Incidentally, Mr Millar gave his blessing to the amalgamation movement in the rubber industry. But of } more immediate interest is tho fact that the rubbor restriction year ends shortly. There is, therefore, much speculation regarding the action that is likely to bo taken by the Colonial Office. The scheme in its present form is undoubtedly a failure, for whereas it provided for an average prico of Is 9d jto 2s per lb the price has stubbornly rorhained below Is 6d per. lb. This suggests to some observers that the restriction scheme should be tightened up and to others that it should be abolished. Having acceptod the recommendations of the World Economio Conference, which favoured the removal of all restrictions on trade, the Government is not in a strong fosition to tighten up the scheme, fc is equally difficult to conceive the Government framing plans for the abolition of the scheme. The Colonial Secretary recently stated in the House of Commons that he did not then "contemplate either the withdrawal of the scheme or any alteration In the pivotal price." It seems assured, however, that certain minor modifications will be made in the scheme for the ensuing restriction year. The PosljJon of Tin. . It appears that tin prices are as difficult to predict for any considerable time ahead as rubber prices; in both markets the unexpected commonly happens. At the beginning of the year it was freely stated that the average price of tin during 1927 would be £3OO per ton. But to-day the price is no more than £262' per ton, and the outlook for the commodity is not particularly favourable Stated briefly, the collapse of prices has been due to an apparent fair increase in the world production, and to some decrease in trade needs. As for the increasing production, it is pointed out that a moderate increase in the output of the Federated Malay .States for tho current year is expected, while production in Nigeria and Bolivia has made a certain' amount of headway. On tho other hand, the output in China fpr this, year is expected to show a reduction owing to the disturbed internal conditions. Turning to consumption, tho world's requirements have so far been on a smaller scale than a year ago. The total American deliveries for the first eight months of this year amount to 50,200 tons, making the monthly average 6275 tons, as compared with 6704 tons for the same period last year. There has, however, been an increase in Continental takings, the figure for the first eight months of tho year being 24,819 tons—an increase of 1800 tons against last year. Thus the net deficit in the total world deliveries during the present year up to tho end of August is 2645 tons. Tho immediate outlook is somewhat obscure. The optimists point to the paucity of stocks and to the probability of an increase in American consumption. But it is extremely difficult to forecast tho course of production in the coming months. It is probable that the tin market will display a hesitating tendency in the immediate future.

REILLY'S (DUNEDIN) iVIARKET REPORT. i Rally's (Dunedin) report as under:— Tomatoes, choice Is 6d and la 8d good 1« 2d and Is 4d, inferior 1b Id per lb; pears, choice 4Jd pel lb; cherries, choice, la 3d to ls9d, others 8d to lid per lb; strawberries, choice 2s 4d, others Is 6d to la 9d per lb; gooseberries, choice 4d, inferior 2Jd per lb; green peas, 4Jd per Jb; broad beans, Sd per lb; French beans, 2s per lb; potatoes, kidneys Bd, rounds 6d per lb; aspara gus, 10s 6d per dozen bundles; cucumbers, Bs to 12s 6d per doz; lettuce, Is to 3s per Hot.; cabbtfge, 3s 6d per doz.; cauliflowers, 14s per doz.; spring carrots, 3s; turnips, Is 8d; beetroot, 2« 6d each per dozen-bunches; Stunner apples 10s to 12s 6d, inferior 6s to 10s 6d*per eoso.