BRITISH TRADE REVIEW

Dominion, Volume 16, Issue 179, 17 April 1923, Page 7

BRITISH TRADE REVIEW

GILT-EDGED SECURITIES STRONG

SLUMP IN THE BUTTER MARKET

OPENING OF APPLE SEASON DISAPPOINTING

BY TELEGRAPH.—PRBBB ASSOCIATION, —COPYRIGHT. London, April 14. Tlie outstanding feature of the Stock Exchange is the strength of gilt-edged securities, some of which have established new records. Notable among these is the 5 per cent. War Loan, which has reached £lO3 55., a rise of no less than £o since October. British Government stocks, corporation stocks, colonial Governments’, Indian rads, and all other securites fo the kind show advances, and the demand exceeds the supply. One factor responsible for the strength of the British funds is the rumour that the Budget may contain some provision for a further conversion loan, while confident hope is expressed that the income tax will be reduced. The latter has accentuated the demand for good securities. Reaction In Exchange on New York. The reaction in sterling exchange on New York has caused anxiety. A financial writer in /“The Spectator” says the relapse is not surprising, for there is every reason to believe that the recent advance in sterling was largely stimulated by special transactions, such as the American purchases of British securities at a low level, operators obtaining a double profit both by reason of tho rise in securities and tho movement in exchange. It may be doubted if the recent rise was entirely justified by the economic conditions as between the two countries. Quite apart from the great trade balance in its favour, the United States has lent £4,000,000,000 sterling to foreign ■ countries within three years, which should give her a further control over the exchanges. Other financial writers suggest that the break is due to the selling of sterling to America to pay for foreign bonds bought in New York by British investors.

Butter Market very Siow. ■The butter market is still terribly slow, and importers find the greatest difficulty in making sales, as buyers all seem to have sufficient stocks for present needs, and are determined to use these before they buy again. But there are some slight signs of improvement, for Germany has resumed purchasing Danish after some months’ abstention, and America is also taking some Danish; also, tho lower retail price of Is. 8(1. per pound now ruling in England is likely to increase consumption. Against this must bo put the fact that spring is here, and England. Ireland, and the Continental countries of supply are all increasing their outputs. London importers attribute the slump in butter largely to tho fact that considerable quantities of New Zealand butter have been shipped, direct to provincial centres, where it came into competition with Danish, and sales could be effected only by lowering prices. This, of course,' is an expert’s point of view, but Londoners’ contention is tha' London is the best centre-of distribution for butter, while shipments to outports, where the demand is comparatively small, only have the effect of withdrawing buyers and competition from London. Apple Prices Unsatisfactory. The Australian and New Zealand apple season has had a disappointing commencement, prices all round being unsatisfactory. This is largely due to the fact that most of the Australian apples were immature and lacking in colour, while the prevalence of bitter pit, especially in Ribston Pippins and Cox’s Oranges, took many shillings per case off their value. It is particularly unfortunate that these early arrivals should bo so poor in quality, as there are still plenty of American apples here, with which the Australian apples compare unfavourably, both as regards appearance and prices realised. The presence of these immature and pitted Australian apples on the market has done much to nullify the effect of the advertising propaganda. Several importers are advocating the postponement of the first shipment of apples to the last week in February. Undoubtedly another ten days on the trees wauld be beneficial to tho fruit. One bright spot in the apph trade so far is that there has been no sign of brown heart, which was the bugbear of last season’s shipments. Five steamers have arrived, but the closest inspection of the fruit revealed no brown heart in any cargo. Importers attribute this to the greater care of the shipping companies with regard to the ventilation of holds, less close storage, .and the use of more dunnage. There is a good demand for apples. Importers expect better prices, if the quality of further arrivals improves.—Aus.-N.Z. Cable Assn.