COMMERCIAL & FINANCIAL

Evening Post, Volume XCV, Issue 45, 21 February 1918, Page 10

COMMERCIAL & FINANCIAL

Evening Poet, Thursday,

Trade is generally reported to be fairly steady, as is usual at this period of tho year; at the same time the difficulty in obtaining_ many imported lines and the high freights ruling from all overseas ports intensify tho difficulties of trading With respect to the United Kingdom, tho situation is extremely difficult. Not only is tho want of tonnage being keenly felt, but the need for supplying foodstuffs from the Dominions and other exporting countries is so urgent that ships can not be permitted to stay long enough at Home to (ill up with vast quantities of goods that may be exported, and that arc very much needed here. What cargo is taken is such as is available at the docks, and that not necessarily of tho character most needed here and in other markets. Tho position in New York is sot out in a letter just received from New York by a Wellington mercantile house. Several charges on goods, owing to war conditions, are set out in such a manner as to show how substantially they affect tho cost of goods imported from the United States. Tho New York shippers say:—"On account of conditions prevailing as follows: (1) Congestion of traffic in New York; (2) scarcity of freight space which intensifies the congestion; (3) necessity of obtaining Government licenses to ship; (4) necessity of obtaining authorisation from the steamship companies to deliver merchandise to their steamers; (5) the compelling by railroads of taking immediate delivery; (6) the congestion of cargo at piers o£ outgoing steamers, and tho consequent holding up of trucks (sometimes 24 to 48 hours), for which a charge is mado of 1.50 dollars per hour, and . other innumerable difficulties which it is hardly necessary to detail, tho charges which you will find in your invoices are above normal, but it is a matter entirely beyond our control. Double cartages and storage of goods are made necessary, for where in normal times wo could rely on shipping from railroads or store and having the goods accepted at steamship piers, it now frequently happens that moro than one delivery has to be made and storage in the interim incurred. Wo think it right to make the foregoing explanation, and trust you will believe that wo aro doing everything poasible not only to render our friends tho best servico, but also to keep down charges to tho lowest point."

The Wcstport-Stockton Coal Company is issuing £40,000 in 160 registered debentures of £250 each, having a currency of fivo yea.rs_ as from Ist October, 1918, and bearing interest at 6i per cent, free of_ income tax, in order to repay tho existing debentures, which mature on 30th September next. The existing preference shares amount to £47,721 10s of an authorised issue of £50,000 at 10s each, and return 8 per cent. Tho debentures with accrued interest (£700) amount to £40,700.

A Bill before the New South Wnlos Parliament provides, inter alia, that "upon the auditor of any gas company certifying that the cost of production and distribution .. . has been increased ...

the Minister shall causo an enquiry to bo held by a Supremo Court Judge, and if such Judge shall certify that the cost has been so increased, the Governor shall forthwith by proclamation, in tho Gazette increase tho standard price by ono penny per thousand cubic feet in retpect of every penny by which the Judge shall certify that the cost has been co increased."

HEMP. —There was no material change in the market during tho week. F.o.b. rates are approximately £53 per ton for good fair grade, £51 to £52 foi high fair, and £49 for low. It is accepted that no tonnage for hemp will now be available for the United Kingdom for somo time to come. America is affording a limited outlet. Enquiries for New Zealand hemp have been received from Calcutta.

DAIRY PRODUCE.—It is understood! that liberal provision has been made for export of butter and cheese from New Zealand to tho United Kingdom up to as far ahead as April next. Precise figures are not available for publication, but tho total is jin. tho vicinity of 360,000 boxes of butter a-ml 70,000 cratca ot cheese. Tho local butter position has already been referred to in Tho Post. At tho time of writing it was that factories supplying the Wellington market, decided to adhere to their intention to divert supplies from local consumption and otherwise dispose of them as 'from 28th February. The Gazette, Montreal, referring to' tho Imperial purchase of Canadian cheeco, remarks:—"However, tho method of conducting tho checso export trade of Canada has been tried, and with old machinery of selling the goods it has proved satisfactory, «s far as wo know, to all concerned, without much friction. As far as can be learned, it has been satisfactory to farmers who have produced milk for chceso'manufacturo; to tlto cheese maker; but probably it has not boon to the cheesespeculators. Some have claimed that prices for cheese would have been higher had they not been fixed by the Cheoso Commission. Thia is doubtful. It would probably be true for cheese produced late in tho season, after buyers had secured the bull: of the early make at comparatively low prices. Experience proves that cheese has a wonderfully Tegular habit of "sagging" in price when production is high and ascending ip price when thero is very little cheese in the factories for sale. No doubt, 1917 would have been no exception to the general rule had not tho price been fixed early in, the season. Having had ono season'o experience of fixed prices, will those interested in tho cheese industry of Canada be prepared to accept them in the future, assuming that the Imperial authorities are willing?" In reviewing the cheesa market over a. series of years the Gazette shows that tho prices per box of cheese at Montreal wore as follow: —1912, lO.OWol; 1913, 10.25dol; 1914, 11.07dol; 1915, 12.31dol; 1916, 15.26d01; 1917, 17.67d01. Receipts of checso at Montreal wora smaller in 1917 than in 1816. A private cablegram from Canada _ to a local house states that the production shows a heavy falling-off, and that it will ta-ko some time to recover.

■SEEDS—Reports have boon received by a well-known seed firm that the South Island Chewings fescue crop has been ruined. Stalks and seeds show a frosted condition, and blight has been observed on the stalk. Samples have been submitted to the Government Biologist for report. Germination is reported as 5 per cent, to 30 per cent., according to locality and time of cutting, instead of the customary 65 per cent, tol 85 per cent. ; and further that a lot of seed that will not germinate is likely to find its way into the market, but it will bo difficult to find an outlet for seed of such low germination. During the past ten years ths demand for this seed for lawns and ovals has much increased. Indications of tKe.vyo grass crop are good, and a bountiful harvest appears to be assured throughout all Central Otago, and there ought to bo quite sufficient for all North Island needs. This is considered very satisfactory in viow_ of the fact that for some years past requirements of this seed have been supplemented by importations from the United Kingdom. There has been a, short crop of cocksfoot in tho South Island, and prices have reached the very high figure of Is 4d per pound for machine dressed. Farmers are receiving up to as much as Is per pound for undressed seed. Cutting and threshing cocksfoot has yielded those engaged in it up to £2 10s per 501b bag. Merchants aro everywhere receiving small lots of 10, 15, and 20 sack lines. The demand for grass seeds, however, is likely to be rather quieter than usual, because of the wet weather in the North Island seriously interfering with "burns." However, a spoil of hot dry weather would greatly improve matters, and stimulate the demand foi- suitable grass seeds. With respect to clovers, it is probablo that with New Zealand-grown seed and seeds afloat, and what can bo obtained from the United States, there will not be any serious shortage in supplies for the next twelve months. White clover and cowgrass seed indications are good generally in the Do-

WOOL.—The report of the conference on wool prices held at Napier and representative of growing, broking, and valuing interests is now published, and shows, according to Mr. Walter Hill,'chief supervising wool valuer (speaking on the valuation of seedy wool), that, "pieces are costing relatively more than fleece, but that ib not our trouble—it is the fault of tha

original prices which were fixed

The cost of carbonising is equal to tho price we are paying for some wool, or possibly more. Wo haxe fixed a pro rata value for all classes of wool. We have no interest in taking advantage of either fanner or Government. We are appointed as valuers, and wo are trying faithfully to do our work. It is unfair to make comparisons between the prices to-day, and those obtained when working with open markets and free conditions." Mr. Hill also added that "when it comes to only a trace of seed there is no difference in the price given for the wool." Mr. Frank Clark, Wellington . district valuer, said : "The Continental people never bought seedy wool here. There was no competition for it; nobody wanted it. Tho inferior wool that we aro buying to-day from 13d to 14d, I, myself, have bought hundreds of bales from lO^cl to ll^d, even immediately before tho commandeer." In replying to a question, Mr. Hill said the amount of damage done to wool by seed varies up to 50 per cent^ perhaps, but an average of from 12 to 20 per cent. Mr. N. Kettle, speaking as a broker, referred to the few appeals against valuations that had been made. With respect to Hawkes Bay farmers they "are all satisfied with tho prices they have had for their wool last season and this." So far as seedy wool was concerned the growers at the conference were generally satisfied at tho explanations of valuers in appraising that class of wool.

TEA—The Colombo sale this week is a small one, tho quantity offering being cabled as three-quarters of a million pounds only, and that prices will consequently rule higher. At last sale all grades wero firmer in price, especially for the finer grade teas. Calcutta prices, per cable, show a rise of Id per pound for tho last fortnight.