COMMERCIAL & FINANCIAI,

Evening Post, Volume LXVIII, Issue 89, 12 October 1904, Page 4

COMMERCIAL & FINANCIAI,

Evening Post Office, Wednesday. DAIRY PRODUCE. The improvement reported in, butter a week ago has been lost, and the AgentGeneral reports now that the market, is uncertain, with a 1 weakening tendency. The conditions point to an unfavourable market, and the weakness will increase each week, but there ought to be a revival in the second ana third week of December, when the stimulus of the Christmas trade is felt. There are two outstanding features which make for a weak market. There is every prospect of a very large increase in the supplies from. Australasia, while the consumption is bound to be restricted owing to tiie severe depression in consuming centres. The distress in. England amongst the unemployed appears to bo very acute, and there must be thousands of others working broken time and earniug very scanty wages. The consumers of our -produce have not the means of purchasing, or at all events cannot pay the prices of former years. With an increased output and restricted consumption prices must inevitably fall. It is not a pleasant outlook, but there is nothing to be gained by shutting our eyes and pretending that things arc as good as they were. New Zealand-stored butter is quoted at 98s, against 100s to 104s a year ago. Cheese is dull at 435, as oomparedi hvith 53s to 54a a year ago. The cheese market will exhibit less irregularity than butter, for it will go into consumption because of its relative cheapness. The decline in values will help to convert many colonials to accept Mr. Chamberlain's preferential tariff proposals. Messrs. W. Weddel and Co., 'in their annual review of tha dairy produce trade, touch on this subject, and point out that for the year ended 30th June last the colonies supplied 14.7 per cent, of the butter and 35.5 per csnt. of the cheese, and go on. to say: "This country, having a, steadilygrowing demand for dairy produoe, which cannot be met with the almost stationary home production nor by the slow-expand-ing colonial output, cannot possibly shut out or lessen its foreign supplies (34.6 per cent, of the whole)' without cortiinly raising ttheir cost and that of the remaining 65.4- per cent. In fact, some rise, resulting from the duty being imposed, must take place in this market before colonial shippers can obtain any cash value in respect of the handicap proposed to be placed upon their competitors. . . Any preference to colonial dairy produce can be secured only through tho perpetual competition which exists in all markets, and the preference can only exist so long as colonial dairy produce, quality foi quality, undersells the foreign. Unless the preferonce raises the price of colonial produce, what advantage will it be to the colonies?" To artificially raise the price by the imposition of a duty would be hurtful to the working-classes of Great Britain, and it is no wonder that the labour unions in the Mother Country resist the scheme. OTHER PRODUCE. By reason of short supplies the market for frozen mutton and lamb is being well maintained, but business is restricted. Beef is very much depressed, the supplies from the United States and the Argentine being large. The hemp market is steady at £29 to £30, against £31 10s to £32 10s a year ago. The sugar market has advanced very considerably during the past few months, and values are now at a high level. German beet sugar is quoted at lla 2d, as against 8s 9d per cwt a year ago. The upward movement began, in the colonies some little time back. The advance ia price is duo to * very great shortage of supplies. There is an estimated reduction in tho general vifible supply of 500,000 tons, while tho am idler sowings are likely to bring about a. further relative reduction of 300,000 tons. This applies to beet sugar. While supplies are decreasing, the consumption on the Continent since the bounties were abandoned has been stimulated, and ia further increasing at the rate of over 600,000 tons per annum. Cane sugar should improve under present conditions, and Queensland and Fiji should benefit greatly. In 1903 Queensland exported 1,081,429cwt of cane sugar, ll,o3Bcwt of golden syrup, and 21,030 tons of molasses, valued in all at £653,913, and in addition 50,862 gallons of rum, valued at £4563. With the exception of a very small quantity, nil this production was absorbed by the other States. A new system brought into operation with considerable success by the Great Western Railway Company is likely to affect colonial produce in the London market. The scheme consists in the encouragement of direct dealing between the farmers of the western and south-we3tern counties and the householders' in the metropolis. Butter, eggs, poultry, fruit, and vegetables are gent to oonsumers in parcels ranging in weight from 41b to 481b. The produce is neatly packed in small boxes, which are lent for tho purpose by tho company or supplied at a trifling charge. Some of the larger ones have divisions whioh admit of the carrying of several kinds of produce under ono cover. A box containing 241b of produce is carried by fast passenger train 50 miles for 6d, 100 miles for 9d, 200 miles for Is, and any distance over 200 miles for Is 3d, and these charges include free delivery b\ the company's railway vans in London. The saving in cost is slight, but the rapid delivery with the minimum of handling ensures tho goods being delivered in bettor condition than those obtained through middlemen. WHEAT. The value of Australian wheat in .London has not varied much during the past few days, and the situation is still uncertain and full of possibilities. The one known factor is that Europe stands in need of enormous supplies, assuming a normal rate of consumption. The uncertainty is as to the sources of supply, and this must continue for another two or three months. The normal consumption of Europe iB likely to be checked by the prevailing depression ; and this in turn will prevent prices advancing too far. "Beerbohm,". one of the leading authorities, believes it is exceedingly possible that tho season will be one in which it will be found more difficult to meet the current requirements than in any season since 1897-98. In other words, the demand may easily overtake the supply, instead of as in the p.ast years, the fupply being always in excess of the demand. Some extraordinary stories are told of the speculation in the American wheat markets. The speculative Syndicates, whioh were formed all ?rer the country

mado hugo profits, ranging from £10,000 to £400,000; but the most remarkable featuro of the gamble as a whole was the extent to which people of small means engaged in it. Farmers, shopkeepers, clerks, domestio Borvants — in fnct, almost everybody with a dollar to spare — wore drawn into tho prevailing craze. According to ono American report, "The bucket shops of Chicago are daily filled with pale-faced men, women, and even boys, watching the quotations and trembling with excitement, the scones strongly resembling those of Monte 'Carlo in tho season. Money is being borrowed in pawnshops, salaries are boing mortgaged to money-lenders, and tho loan sharks are revelling in the most prosperous business they have had for many years." MONEY MARKET. The London money market continues easy, with the turn of the quarter, and the Bank of England figures compare very satisfactorily with those of last year. As the depression increases in Great Britain a cautiouß feeling will prevail, and there will be a- tendency for money to accumulate, as was the case at the time of the Baring crisis, though perhaps in a less pronounced degree. -The . Stock Exchange values show that New Zealand 4's have declined 32s 6d, and West Australian 3£'s 40s. Tho fall in New Zealand stocks may be due to the alleged rule of the London Stock Exchange anticipating the interest payment by & month. It may also be duo to further negotiations for the issue of 4 per cent, debentures or Treasury Bills. Li the case of Western Australia there is no doubt that the Western colony is in want of money, and will have to borrow before the year ends. The Victorian Government may also require to borrow shortly, while tho Sydney Cijty Council will probably raise. £250,000 in the Ibcal markets. In tho meanwhilo it is interesting to note the rato of interest for Credit Foncier loans granted by the Viotorian Savings Banks. The rate is now 4J per cent. The money and tho working expenses costs tho Commissioners £4 13s 7d per cent., so that thero is only Is 5d per cent, margin for reserves, etc. Another Victorian item ot interest to land speculators in this city 13 the sale of the bluestone property in Eliza-beth-street, north of Fb'nders Lane, the frontage being about 160 ft, with very extensive buildings, right in the heart of Melbourne, the price paid being £90,0-u. In the boom time, it waa sold for £160,000, and was passed on to a company at over £200,000. There is a big difference between the boom price and the true price. Of course, there is no boom in Wellington land ; the advance of 50^ 73, aad even 100 per cent, "just growed.