COMMERCIAL AND FINANCIAL THE CITY.

Evening Post, Volume LXXV, Issue 36, 12 February 1908, Page 3

COMMERCIAL AND FINANCIAL THE CITY.

During tho past week the whole?alo 'distributing houses report trade- as being of a fairly active character. The wana veather hrn sustained tho i^omand for a mi Tibor of seasonable lines and the e::--colloat prices for butter and cheese obtainable have lind a good effect in fciimulaiinz country orders, which hayo been sr.tlsiiictory in volume. I'oipplaiiits of tha lightlies -of money courinjo to bo henrd, lvoro particularly froM tho grocery section, which it is claimed has had to lace compositions of more than avera;<s number for this poriod of tho year. It is certainly difficult to know .why this should bo the caso at n._ tinio when business, so far as surface indications point, is pood, labour on tho whole well employed, and prices for our commodities, .vith perham one exception, certainly not unrerriunoratrvo.,- But there is the fact, and it. is futile to try and discount tho lessened purchasing^ower of money in Wellington compared with other oentros. A largo proportion of these coinpositiona may arise from grocers having in the first place insufficient capital, and then iv their natural desiro to work up a. connection neglecting to exorcise enough discretion in the matter of credit. PACKET TEAS.--There have been no marked changes in quotations of tho leading grocery hues, but it i 3 stated that tho firms engaged in tho_ packet-tea trade are seriously contemplating raising their quotations, as owing to tho consistent, appreciation in prices at Colombo and Calcutta during the past ninp months, they are finding it virtually impossible to obtain their requirements at a figure which allows a reasonable margin. Unfortunately, too, for them, tho rise has been most pronounced in those cheaper grades which in tho past have been found most saleable in this market. DRIED FRUITS.— In dried fruits . business has been quiet, but retailers have experienced an exceptionally good demand, which has lightened stocks materially. Writing in Deccrnbor, the .Produce Markets Review states that thero wore indications that retailers had underestimated their requirements. Stocks of dried fruits in England of all descriptions were moderate, and merchants appeared content to hold, while values ruling were- regarded es very reasonable. Some enhancement was thought not improbable after tho end of the year. EASTERN GOODS— There is not much animation in Eastern lines ; tapioca has a tendency to move upwards, whilst tho downward trend of nco still continues. Juto goods are quiet, and with an easy market at Caloutta, merchants are able to make contracts for supplier) afc quotations which represent a considerable cut on I what had to bo paid for last season's requirements. Enquiry among local merchants fails to elicit confirmation of the report that or and after February next year, the importation of cornsacks exceeding 2001 - capacity, will, be prohibited. This report, if correct, would firing, Now Zealand into line with the Commonwealth. A great deal could easily _bo said in favour of this humane regulation. In the bad old days when freights were chargeable at per sack it was, of course, good business, to have _the sacks of the maximum size. To show that the'practice leads to gross ■ abuse, it is stated that at Adelaide (S.A.) last; week a sack of wheat weighing just 6101 b was handled. East Coast maize sacks not so long ago \vere tremendous affairs, and mu3t have contained nearly five bushels. The smaller sack will facilitate rapid loading_ and discharge whilst its extra cost is infinitesimal . ', GRAIN AND PRODUCE.— The grain and produce trado is quiet awaiting tho opening in earnest of tho now season. Locally, the most important upward mc\enients. have taken place in maize and pollard. The former is now quoted at about 4s lOd hero, whilst pollard is-prao-tically unobtainable, except for what small parcels the local mill can supply. Oatd are in a state of flux; quotations range from 2s 3d to 2s sd. The Australian demand is expected, to have a hardoniag tendency, but it must not bo overlooked that South Africa ie now a compatitoi and a large shipment from that 1 source was recently imported to Melbourne. Wheat is easier in sympathy with the decline on the other side, and this may prelude a further reduction in the price of flour. , Potatoes, are difficult to assess in valuo; everything depends upon the course of the auction (sales. It it. expected that Australian will be shortly imported, but as the duty and freight, together, come to 40s per ton. supplies will have to bo cheaply purchased to compete successfully with the New Zealand article, which at present is rather higher in price than suits the average householder Southern onions are now available, quotations from £7. to £7 15s f.o.b. There is no change in bran or chaff. Barloy promises to see a high price this season for malting qualities, i Australian buyers are operating extensively in this market, and the competition between tho outsiders and the New Zealand brewers is proving a splendid thing for the growers in MarlborougH. Potato crops in the neighbourhood of Christ- ' church will suffer from want of rain, but Oamaru and Timaru will be up to tho average. WHEAT.— Tho world's total production for the past seveu years, according to Dcrnbusch, may be stated as under: — i Quarters. Quarters. 1801 ... 368,055,000 1905 ... 425,550,000 1902 . 399,341,000 ISO 6 „ 4-35,880,000 1903 407,779,000 1907 ... 384,000,000 19<W 395,185,000 II ivill be seen, therefore, that the production for ths current season is the smallest 6inco 1901. If the duty on wheat imported into Germany were taken off the demand would bo tremendously stimulated, ryebread being dearer in Berlin than wheaton. bread in London The leading authorities, Dornbusch, Bet'rbohm and Broomhall, forecast higher prices for tho crop now being harvested. BUTTER.— Tho butter outlook in England i=> tho tiicmo in local trade circles. 'I ho absorbing question is naturally how far ahead will tho quotation of 140s per art. bo maintained. Enquiry among the principal Wellington exporters reveals plainly enough that both they and their expert .London agents, have been taken completely by Eurprise at tho rapid jump I in prices. The weight of opinion is that it j is improbable that this high quotation can ! be reckoned upon beyond April, for about then tho supplies from' Denmark and Siberia begin to attain large dimensions. Tho position this fcason is eloquent testimony to the power of tho statistical position : and tho c o merchants who rely most confidently upon bnoh a guide will como out on top ovor a term of years. Tho lonic, with 42,000 boxT, is tbo noxt New Zealand boat to arrive, i>nd it is anticipated that the shipment will realise 140s; ' tut no forecast is attempted fnr late arrhals. Apparently exporters here fixed upon 115-> a3 the average prico of J?rbruary shipment. The raising of the price of local butter was inevitable. To show how keen the demand is, we saw a ielcgran from a firm in the South Island reading "thip twenty boxos, price immaterial" ; and it really looki as if the local nupyly of fir«t-gra<!c quality would be insufficient. Many of ihe factories that nave disposed of tboir output to Kngli&h merchants are already finding it a difficult matter to main'aiii shipments within the 10 per oj'nt. margin. In faft, the majciity of them £>re behind. The contrncU specify (hat the merchant must aecnpt either 10 por cent, in excess or below the estimated output. Thi« yew it will be. below, and it i<* feared that tbo 10 per cent, margin will not s-.iffice. If the outp\it falh below that then the maiehant has the right to make up the deficiency by purchasing in the open market and Filing iho factory with the difference And with butter at 140s the bill would not be a light one. With regard to the local portion it must not be forgotten that increased prices automatically diminish consumption by encoiuagmg the u^o of substitutes. ./Anyway, by the end of March exports will bagin to fall away, and with a decline in >he Homo market tho<!e factories which have not disposed of their outputs will pay some attention to local requirement? The- consigning factories b*ve scored heavily, ibis scaton, and buy•rc will find it almost imaossible in future

to make contracts. It is a treineudoub gamble to fix in August tlio price tor on output which is distributed over the next six to eight months, aud the practice obtains ••.owhere else In tho world — not even in the United States, lioms of the bora dealer in futures. FREIGIITR.— LecaI brokers nre complaining of tho blil'f freight charged on grapes. They point out that the ordinary rate on Australian fruit is 0.1 per case measuring lft Sin, but on a similar sized package cf grapes the rate ia 2s. It is admiite.'l that the grapes entail mevo careful handling and have tho benefit of the cool chamber aboaid the steamers, but rurely a double r.itc unuld suffice to cover t'doso advautcßes. Unless something is done to minimise Iho charges on grapes tho tracio will i.ever attain any volume. The Sydney shippurn dec-lined to Fcr.il ronsignnrcTits to Auckland being dkcarisfied with tho returns which, after payment of charges, meant a lora on the previous shipment. Ejrgs aro in fhort supply here and an endeavour is being mado lo supplement tho deficiency from Australia. Here, again, freight is a handicap, the rhipping companies quoting £'! per lb. The disparity of euch a quotation sashown by comparison with butter, which is conveyed 12,000 miles for practically the Esme rate. " CQPPTJR.— The following figures will bo of interest: — Price per ton. ■G s d May, 1907 101 0 0 Juno IGO7 86 10 0 July, 1807 88 10 0 August, 1907 7fa 5 0 September, 1907 63 15 0 October, 1907 67 0 0 November, 1907 63 0 0 December, 1907 58 5 0 January, 19C3 61 0 0 "There has lately been an enormous inrrease in tho shipments of copper from the United States. In November alone, over 34,000,000 tons wero shipped, beiug an increase of 13,000 tons compared with tho preceding month. It might bo supposed from these figures that the expected demand for copper in Europe had already sprung up, and that users of tho metal who had hitherto been cheoked by Iho high prico were beginning to be tempted by the quotation of £58 per ton. /Consumption in England and France continues good, and manufacturers havo been very busy with 6rders freely booked at the low level to which prices have fallen, and they believo that an actual fcarcily of copper seems to bo quite possible, il not probable, in another three or four months,' Eays tho Economic of 21»fc December. COLONIAL INDEBTEDNESS.— Of late thero has been a greater disposition on the' part of investors to take up colonial issues, and no doubt this would have been more marked but for tho high rate* ruling for money during the \vhole of th* year. "Although colonial indebtedness.,'' says \.he Financier, "has so largely iiicref-.u ed, thero has never been/th6 sliglite^t reneon to suggest that these loans did nui offer the very best security — 33 good a (security, indeed, as console. One reaeGß why colonial loans are not co popular, or in euch good demand as they" might X, is that the agents for tho leans, Have sel dom sought to make the issue? popular, they seldom advertised (he loans property, and they have apparently not sought the support of the smatf investor, tho bon<lt being usually of too large a denomination, and too often tho mode of issue has hutu by inviting tenders instead of by the offer ! of tho stock too all subscribers at a fissd price. The result has been that but a smaU I proportion has passed direct into the hands of investor?, the smaller holders having been forced to buy at an enhanced price from the big people who hacl tendered for i the stock, or from underwriters and syndicates, who have received every encouragement at the hands of me issuing- agc-iits. As a oonsequenco, the price has always b6en more or less depressed, because thefco people, always had a, large supply on hand, which .they could afForu to^seH at a low figure owing .to tl<*, lnv;iurAb\ wa> if. which their applications hnd been treated. Nor have, any steps t^eon taken to mak<t colonial loans popular, atid the general idea is that they exist in bonds of r.ot less th»u £100 each j in fact, that is ,tho form ill which tho loans have ueua'ly been issued, but iv nearly everj' case the '-inscribed' portion of the ' loku is transferable in any amount, and fi'ce from stamp duly. Whnt can be safer or -moro convenient? The security, 4,3. has been said, is as good as that afforded by console, while the yield is considerably higHer, 31 per cent, being a not unusual return.' 7