RISE IN WORLD PRICES

Press, Volume LXIX, Issue 20937, 18 August 1933, Page 8

RISE IN WORLD PRICES

+ [ Signs of Improvement Everywhere I DOMINION PRODUCE| BENEFITS FAILURE OF CONFERENCE SURVIVED Business men have had so many disappointments in thelast three years, as one promised | ! recovery after another has ) 1 lapsed, unfulfilled, that they I naturally look with some suspicion at any new upward movement; but even the must pessimistic have been impressed and encouraged by the movement which began early in the year with substantial rises on | the metals market and has j since been sustained through all the vicissitudes of international 1 politics, commerce, and finance. I The fact that this recovery has j | survived even the failure of the ! the World Economic Confer- I j ence, on the promise of the suc- ! cess of which it was supposed to | be largely based, is regarded by j many as a definite indication of | its permanence. At least it promises a permanent improvement to a much greater degree than any of the spasmodic rallies of the last three years. New Zealand's principal interests abroad are in the wool, meat, and butter markets. At recent levels, in English currency, the prices for Bradford j merino tops have been on the highj est basis recorded since December, 1929. The following figures compare the rate ruling for average tops in December, 1929, September, 1932. and July, 1933: I Pence per lb. ; I Dec. Sept. July 1929. 1932. 1933. (>4's merino .. 31 24/5 31 60's comeback .. 29 23 30 56's fine crossbred .. 24<i IC£ 21.' j 50's medium crossbrejd 20.'. 13 16 46's coarse crossbred 18.1 10A 12 The most notable feature of the | comparison between December, ( 1929, and July, 1933, is the wide discrepancy between the rates , ruling for merino and medium and coarse crossbreds, the former being 20 per cent, cheaper and the latter 33 per cent, cheaper to-day than in 1929. Both, however, show a definite advance on last year's values. If present prices for merinos are maintained, some trade is certain to be diverted to crossbreds, and this is expected to result in an appreciable further improvement in their values in the nee future. The level of prices at recent Lon|don sales give some hope that the halfbred wool in which Canterbury specialises may realise 13d or 14d this season, compared with 8d or 9d a year ago. One farmer has reported that whereas last year his fleece wool was valued at 4d this year he has been given that value on his crutchings.

Meat and Butter. j Comparisons of meat prices on i the Smithfield market, this year and last, indicate a definite improvement:— Pence per lb. Mid-August. 1932. 1933. New Zealand best wethers .. .. 3A Ah New Zealand ewes .. 2£ 3jj Canterbury lambs, 361b and under .. 5 6 J North Island lambs, 361b and under .. 5£ 6& Although values of New Zealand butter are still below last year's, when the London market at this time was firm and active, they have shown substantial advances since April. Current prices are 91s to 92s per cwt, and reports generally indicate a much brighter outlook than has been apparent for some time. Last April butter was as low as 65s and cheese (white) as low as 38s i(present value 495).

Revival in Britain. Recent messages describe greatly improved trade conditions in Great Britain, particularly among the heavy industries, which have been languishing for years past. At Sheffield several of the big plants in the steel trade are working at full capacity, or even overtime. The total number of unemployed has fallen 10,000 in a year. In Lancashire the fine summer has given manufacturers of artificial silk and light cotton materials the best season for years. There is improvement in the engineering, building, steel, and coal trades. The production of pig iron increased for the year by 60 per cent., and steel has advanced even more. Merchant vessels under construction in Great Britain and Ireland at the end of June were 35,101 tons greater than in the previous quarter. Of the total tonnage under construction throughout the world 39.2 per cent, is being built in Great Britain and Ireland. Commodity Prices Rise.

These improved conditions have caused many rises in standard prices. According to the table published by the "Board of Trade Journal," on the basis of 1930 prices being 100, wool has advanced between July, 1932, and July, 1933, from 69.6 to 86.1 and all commodities other than food, irom 80 to 88.8. Woollen and cotton piece goods have increased by from 12 to 25 per cent. Increases in world prices of leading commodities are quoted by the "Economist" as follows:

End of June, 1932. 1933. Canadian wheat, a qr. 26s 31s 9d

Sugar, per cwt .. 19s 20s Cotton, American middling, per lb 4.43 d 6'.53d Cotton yarn, 32's twist, per lb .. 7.87 d 9.87 d Jute, a ton £l4 15s £l7 10s Tin, standard, a ton £ll4 £225 Copper, a ton .. £26 £3" Linseed oil, a ton .. £l2 £<:o Rubber, plant, sheet, per lb .. 1.75 d 3.44 d Mutton, New Zealand, per 81b .. 2s 7d 3s 2d Fewer Unemployed. For the first time since the . beginning of. the statistics

published by the International; Labour Office last month show re- j ductions in unemployment in some i important countries. Germany and Great Britain, for instance, show decreases in unemployment figures of j 9.8 and 6.6 per cent, respectively. The bulletin says:—"lt would be premature to conclude that the worst of the depression-has passed, but undoubtedly the figures are consistent with that view because other economic indices also show improvement. There is reason to hope that the long-expected recovery may at last have commenced.*' Returning Confidence. In New Zealand there is already a good deal of local evidence that recovery is under way:— The quarterly statement of the public accounts, issued a few days ago, show that revenue is still buoyant and the yield from the new impositions, sales tax and gold export duty, is "well up to expectations." Almost all stocks have firmed markedly during the last year, and, most significant, stocks showing any fall have tended to recover very rapidly, showing that investors are quick to take advantage of the temporary reduction to buy. Bank, insurance, and loan and agency shares are all definitely above last August's values. Typical examples ..are:— Approx. market price A year ago. To-day. £ s. d. £ s. d. Bank of Australasia .. 9 10 0 12 5 0 National Bank of N.Z. ..3 9 6 4 3 0 National Insurance .. 0 12 9 0 17 S N.Z. Insurance 2 0 0 2 12 6 Dalgety and Co. 7 7 0 9 0 0 Colonial Sugar .. 43 5 058 15 0 Electro. Zinfc, .. 014 3 1 19

Fat Sheep Values,

Fat sheep values at the Addington market have been practically doubled during the last 12 months. A year ago prices were as low as up to 16s for heavy prime wethers and 15}s 6d for heavy prime ewes; and the cheapness of ewe mutton especially had a depressing effect on all other fat stock prices. At present prime heavy wethers are bringing 26s to 29s and prime heavy ewes 22s to 255. The demand and prices for store sheep have also increased since the last ewe fair season. The improvement in wool and sheep values has increased the demand for farm properties, although sales are not yet easy to make. The rabbit-skin market is firm with good demand from America. The Unemployment Board's No. 10 subsidy scheme has given a great stimulus to the building industry, and is having its effect upon all the allied trades. In Christchurch alone the total cost of the work authorised is £285,280, of which wages represents £101,664. The high price of gold and the encouragement of mining have brought relative prosperity to many parts of the Dominion which were previously in difficulties. Company Dividends. Many companies have met their difficulties by lowering costs and are again in a position to pay dividends. Mason, Struthers, and Co., Ltd. for instance, announces a dividend of 2b per cent.—the first for two years. Recent company returns in Australia and New Zealand show a general improvement. Trading returns for the port of Lyttelton during July were regarded at the last meeting of the Lyttelton Harbour Board as indicating a "definite financial recovery." The totalisator investments at both the Riccarton and Addington race meetings last week showed substantial increases. The Canterbury Jockey Club's turnover of £91,382 was 24 per cent, greater than the previous year's, while investments at the New Zealand Metropolitan Trotting Club's meeting showed an increase of 17 per cent. It is surely too much to suggest 'thai: all this is coincidence..