COMMERCIAL & FINANCIAL

Evening Post, Volume XC, Issue 89, 13 October 1915, Page 4

COMMERCIAL & FINANCIAL

Evening Post, Wednesday. The rise in the freights for., wool for the United Kingdom, which comes into operation on Satunrday next, did not come as a surpise to those in the trade. It hardly to be expected, considering the acute shortage of tonnage the world over, that freights generally could for long remain »i they were fixed' shortly after the war began. The war has made enornious demands upon the British mercantile marine, the enemy has destroyed a large number of ships, and the vast German merchant navy is eliminated from trade for the time being. The old question of supply and demand arises, and there is not the tonnage required available. The progressive rise since the war that most concern New Zealand producers are set out in the table hereunder. New Zealand is better off, however, in exporting its produce at lower freights : — Latest Rates. Wool, greasy, 5-1 M lb, |d lb . . Id Wool, slipe, 11-16 d lb, 11-16 d ... l£d Wool; washed, |d lb, |d lb ... lid Sheepskins, 5-16 d lb, fd lb . . Id Pelts, £2 ton, £2 5s ton . . . £3 5s Rabbitskins, fd K», Jd lb ... . Ud Tallow, £2 ton, £2 ton £3 Butter, 2a 6d box, 3s box 3s 9d Cheese, £d lb, fd lb . . . . 9-16 d Rabbits, cubic ton . . . . £3 15s Pork, 9-16 dlb 2d Veal, 11-16 dlb Id Meat, sundries, Is 6d cubic foot.. *£2 Hemp, £2 10s ton. £3 5s ton £4 Tow, £3 5s ton, £4 ton ... £4 15s Cocksfoot seed, £3 15s ton £3 15s Other grass seeds, £3 5s ton . £3 5s Hops, lid lb lid Preserved meat, £2 15s ton . . '£2 15s Scheelite, £2 5s ton ... £3 5s *At per cubic ton of 40 feet. The frozen mutton, lamb, and beef, is now carried in requisitioned refrigerated space on Imperial account, and the rate is not ascertainable. It has, however, been adjusted between the Imperial authorities and tho shipping companies. With regard to the above rates those for rabbits, pork, veal, and sundries came into operation on 31st May last. At that date the rate of butter was raised from 2s 6d to 3s per 561b box, and again on 27th September there was a rise in the freight to 3s 9d per box. On 31st May the rate on cheese was raised from id per pound to Jd, to be reduced on 19th August to 11-16 d per lb. Hemp and tow' rates vary according to the time of year shipped, and other circumstances. Note. — The above charges carry (since the ivar) 25 per cent, war surcharge, also the customary 10 per cent, primage A. rise in' freights in the AustralianNew Zealand trade and on New Zealand coastal freights is expected, probably with the New Year, if not made before A prominent London bapker, writing to a financial friend in this city, under date 17th August last, says: — '"In the v discount market the ail-important factor is the alarming fall in the New York exchange, which has reached the low record of 4.65 —a figure never before approached in our timo The problem becomes more pressing every day, and, though some method will doubtless be found of coping with tho situation, the danger of heavy gold exports to America constitutes an emphatic warning to the market against permitting discount rates to slip away. To assist in maintaining rates, the government, or 9th instant, increased tha rate of discount allowed to purchasers of Treasury bills, which is now 4£ per cent, per annum for all currencies, whetheT 3, 6, 9, or 12 months. Current market quotations for fine bank bills are as follows — : Two months. Three months. Six months. Per Cent. Per Cent. Per Cent. 4? to 5 . 41 to 5 5 to 5i Business on the Stock Exchange continues quiet, with a moderately firm tone. Interest mainly centres in. the new war loan, the price of which is well maintained. The quotation to-day at 98| cum rights, and 98i ox rights, varies only slightly from that of a, fortnight ago, when I last wrote you." Since tho above letter was written, there was a further fall in New York exchange, which, for- a short period touched 4.48. But the market has now recovered, and, according to last cabled advices, the rate was 4.70^. This, of course, is due to the raising in New York of £100,000,000 on behalf of the Allies. WOOL.— Preparations are being made throughout the Dominion selling centres for the 1915-16 season. The first sale opens at Christchurch on 11th of next month, followed by Wellington six days later. Dalgety and .Co. report offerings and sales for the first quarter of the wool year, 1915-16, as follows: —

Exports for the quarter are 43,244 bales, as compared with 21,676 bales for last year. HEMP.— The market has slightly receded since last week, and prices are 5s to 10s easier. Approximate free on board quotations are: Good fair" grade, £25 10s per ton; high point fair, £24 10s; low point fair, £23 10s. Tow is> steady at following rates: No. 1, £11 15s; No. 2, £10 15s; No. 3, £9 15s. - DAIRY PRODUCE. — Phenomenal prices have been reported during the week for both butter and cheese, but they require a. little explanation. For cheese B£d on trucks was paid, but it was not for the whole output, but for a prompt lot urgently wanted for the local market. For immediate, delivery of mediums 8d per pound f.o.b has been paid. Butter for shipment to end of December has realised up to 15£ d. The recovery of cheese prices has been made since the first week in August, when prices for "finest," according to Weddel, were as follow : —

The extraordinary prices to which Danish butter has soared, as cabled, should be read in conjunctiop with the price table hereunder for "finest" butters, also prepared by WeddePs. It will be seen that on 6th August last there was no Argentine, Australian, or New Zealand competing with European butters. The only overseas butter then to arrive was 1500 boxes of Argentine, the last of the season.

Danish at latest cables was 205s to 209s per cwt., and New Zealand cheeee, white and coloured, 76s to 77s per cwt. CHEESE SUPPLIES.— Mr. S.Turner, of J J. Lon^dale and Co., London, has addressed a, letter to the Prime Minister upon the suggestion that the Imperial Government may ask the New Zealand Government to commandeer the cheese outputs of the Dominion, as the frozen beef, mutton, and lamb have been requisitioned. Mr Turner, "as the largest exporter of cheese from Hie Dominion," has pointed out to the. Prime Minister that the cheese factories in the Taranaki district (which represent three-quarters of the cheese exported from New Zealand) are "very strong against the commandeering of cheese, seeing that contracts are definitely fixed to supply the whole market with about 35,000 tons, out of which the Imperial Government can draw their supplies, the same sts they did last year." The factories suggested the Government commandeering 2Q per cent of . tiieir_ch.es.sS J _to.jcejL over the difnnultT.to.

supply the Government voluntarily, as most of the factories would not supply Government unless compelled. "The factories' outputs are being eagerly purchased for eight months' supply from September to end of April at 7^d per lb. f.0.b., net to the factories. This price is being refused by many factories, as they expect the value of the cheese to realise on the Homo market _Bd f.o.b. If the Imperial Government wishes to\;ommandeer the cheese of the Dominion the factories should not be paid anything less than 8d per lb, and if anyone has suggested to you that the Imperial Government should commandeer cheese they are not working in the interest of the New Zealand cheese producer, or yourself as Premier of New Zealand — that is, if you wish to do justice to your supporters." At the meeting in Hawera several factories' directorates resented the effort to secure cheese for the Imperial Government below market value, in view of the increased taxes which the farmer will be called upon to pay, and the risk he takes of the shortage of 1 production, which somewhat discounted high prices last year. j TEA.— At the Colombo sales last week there was an advance of id per pound all j round, according to private cable advices, attributed to the re-entry of Russian buyers. Calcutta is reported as having advanced id in sympathy. The market has had a great set back due to a, variety of causes — miscalculations some of them — but it did not reach, the pre-war levels. Good teas in Colombo declined lid per pound and the km er grades 2d to 3d per pound ; but they are now moving up again, and fully to Id per pound higher. Samples received show that the quality is most inferior. Reference has already been made to the arrival in Australia of a fair quantity of this inferior tea, which it is understood will have some difficulty in being accepted 'by grocers. A very large quantity of red fibre is noticed in otherwise fair to medium descriptions of tea. There is evidence in private correspondence that the preaching of economy by British statesmen has had its effects upon the consumption of tea, combined with the Is per pound duty. Great difficulty is being experienced in obtaining freight from India and Ceylon to Australia. GROCERIES.— ShouId Greece enter the war it is thought that prices of currants for this market this season would not immediately be affected, as supplies are already secured. It is announced authoritatively that, despite the advance^ in the European market, the Australian Dried Fruits Association has not advanced its local rates, although the London market offers better value than the Commonwealth for sultanas. "The A.D.F.A.," it is added, "feels its first duty is to the local market, and the retail trade is still buying at opening rates for this season for currants, sultanas, and lexias." _ What quantities will be available for this market is an open question. Advices have been received, however, stating that there are no Mildura- sultanas for export to New Zealand, and all stocks of three crown in Australia are exhausted. It is also cabled that there are no stocks available for this market of Califomian Thompson's seedless raisins and seedless sultanas (oil bleached), but some may be obtainable later on. Prices of all American dried fruits are firming up. The Australian Sugar Journal reports an undoubted shortage not only this season but next also. Harvesting is now general, but owing to backwardness in planting the crop is short. _ The Washington State Fish Commission reports that the August "run" of Sockeye salmon is 40 per cent, less than the run of four years ag_o. Distributors of English fancy biscuits have been advised by cable that prices have all been advanced. Seed and pearl tapiocas November shipment have advanced 6d per cwt on the week. Desiccated coconut has risen 2s 9d per cwt ins Colombo. Hongkong cables appreciation of values of peanuts 10s per ton and ginger id per pound. The latest advance in Gua-tamela coffee for this market brings the price up by £9 per ton since last June.

/ August, 1 1915 Per Cwfc s. s. NZ., salted .. — to — A.us't'l'n, salted — to — Aus., unsalted —to — Da-nish, salted . 170 to 174 Siberian, salted 130 to 134 French, salted 144 to 146 French, unsalted 139 to 148 Irish, salted . . 150 to 154 Irish, unssilted 154 to 156 August, 1914. Per Cwt 135 to 145 130 to 140 130 to 140 , 140 to 150 130 to 140 — to — — to — — to — — to —

1915. ' Per Cwt E. S. <evr Zealand, white — to 78 V.Z., coloured . —to 78 Canadian, white .. —to 76 Canadian, coloured —to 76 Jnited States, white 68 to 74 English Cheddar ... 94 to 96 1914. ' PerCwt 78 to 80 78 to 80 76 to 78 76 to 78 — to — 80 to 84

Sept. : Off'd. Dunedin 1,462 Firaaru . 303 Chch. ... 1,899 Well't'n 5,598 Napier ... 1,161 Auckld. 2,564 1915. Sold. 1,421 I 303 1,829 4,443 1,132 2,564 Sept. Off'd. 449 71 1,043 2,501 390 264 1914. Sold. 449 71 1,009 1,968 390 264 12,987 11,692 4,718 4,15: