TRADE REVIEW

Dominion, Volume 13, Issue 270, 9 August 1920, Page 5

TRADE REVIEW

FALL IN THE DOLLAR DEPRESSION ON STOCK EXCHANGE <By Teleßranh-Presa Aesoolation--Oopyrlfrhl (Iteo. August 8, 11.5 p.m.) London, August 7. A dominant feature of tho exchange market has been the fall of the dollar, which eaiuo sooner than usual this autumn, one contributing factor being tho disturbed outlook on the Continent, and another being the increaso in American transportation costs. Yesterday's jtocovery is attributed in somo quarters to France having made considerable) progress in the preparation for the repayment of tho 250 million dollars due in. October, also to the rather more favourable aspect of the Polish question. Other foreign exchanges have to somo extent reflected the relapse in the American rate, but tho advances are mainly due .to war rumours. Fears of trouble regarding Poland have caused uneasinoss on the Stock Exchange, with a general depression and slackness, particularly in the industrial section, where it is further accentuated by Irish events. Shipping shares are weak on a reduction of the time charter rates. The 'on.lv bright spot on the Stock Exchange is ihe fact that gilt-edged securities have offered greater resistance to tho downward movement than other securities.. This is attributable to the anticipation of more money finding its way to the Stock Exohange for high-class investments rather'than for• industrials, which are likely to be affected by the labour troubles, dear coal, 'the railway chaws, and the general dullness of trade which appears likely to continue. The Butter Market. Butter supplies are steadily declining. The weekly allowance will be reduced shortly ito one ounce. The position cannot possiblybe relieved ■until colonial begins to arrive, and even than supplies are likely to be far below requirements. Denmark has put an. embargo on the exportation of butter and cheese owing to the shortage of milk. The wholesale price of Irish butter is about 4205. The Australian delegates, Messrs. Osborne and Sinclair, are in negotiation with the principal importing firms respecting the purchase of Australia's output of cheese. A decision has not yet been reached. Tho British fruit crop is turning out very badly.. The apple yield is almost the smallest on record. Pears are nearly as bad. The dnnned goods bade is veTy flat. Many firms hold large stocks, which were dearly bought, and which they cannot sell except at a heavy loss. The position is made worse by the failure of a firm which has been speculating 'heavily. It is reported that its deficiency is 000. It 5s feared that its stocks will be ;thrown on the market. Harvest Prospects. Continuous rain is seriously affecting British crops, and the position is approaching disaster. Much wheat and barley has been so badly laid that it cannot be cut by machines. Abroad, the .harvests are mostly favourable. It is unofficially estimated that the American j winter wheat yield will be about 550 mil- I lion bushels, and t'he spring about 285 million bushels. Since tho last sales, there lias been a steady 'demand for tallow. A large quantity has been purchased for the Continent. Present values are about 4s. per cwt. above those on July 21, when fine mutton was quoted at 655. The rabbit trade is dull, and supplies are heavy. All the stores in England are full of colonials, of which a large proportion is more or less damaged. These will be difficult to move, but traders expect a good demand for all sound rabbits when the'season opens at the end of the month. Present value for ,lar£fe blues are about 3Ss. per crate, ex store. ' Metal Markets Firm, The metal markets are strong all round as a result of the decline in the American exehnngo rates, which led to large .purchasing, especially of tin, of which there have been .many bulls. The upward movement has been 'helped by fav- I ourable statistics and a risein the East, where tho price exceeded v£3oo. per ton. A dominating factor of the lead market has been the purchasing for reshipment to America.—Aus.-N.Z. Cable 'Assn.