COMMERCIAL & FINANCIAL

Evening Post, Volume XCVI, Issue 33, 7 August 1918, Page 10

COMMERCIAL & FINANCIAL

Evening Post, Wednesday.

Tho large accumulations of produce in store in the Dominion, representing in value approximately £25,000,000—equivalent to a full normal year's exports—has already been drawn attention to. At the moment of writing arrangements for the acquisition by the Imperial Government had not been concluded for the purchase of next season's wool clip (although there is very little doubt but that the business will go throug-h), nor for the purchase of the 1918-19 make of butter and cheese. The proposed purchase of tho wool clip is that it be for twelve months from the 30th Juno following the conclusion of the war —that is to say, if the war should terminate by ; the Slat of this current month: then the whole of the 1918-19 clip would be taken by tho Imperial Government; also the whole of the 1919-20 clip, for the term of the purchase would not come to an end until 30th Juno, 1920, whereas in normal times the clearing- up sales of wool were usually not'prolonged by end of March or early in April in any year. The meat is purchased for the duration of the war and throe months afterwards. Cheesy and butter purchases are for the season's output only. Wool is now paid for in New Zealand "prompt," i.e., fourteen days after valuation: meat is paid for within twenty-four hours of receipt of shipping documents; cheese is paid for up to 90 per cent, of its value by way of advance on the prices agreed upon on the expiry of twenty-eight 'days after the cheese is put into, the grading stores; but payment in. full has been made in cases where the cheese was shipped within twenty-eight days of its receipt into grading store J butter was somewhat similarly dealt with. In order to relieve tho financial pressure on those holding the meat the Imperial Government furnished £3,000,000- to be paid as advances to those,concerned, because although the arrangement as 'to paying against bills of lading was satisfactory,, while there were sufficient ships available to lift' the meat, it was otherwise when the existing scarcity of insulated- tonnage made itself felt.. At the present time the stores of the Dominion aro full of meat, tallow, wool, and cheese, although there has been a welcome diminution of stored butter. But the wool producing season for alii these main exports of the Dominion is about to open. ' Butter and cheesemaking will lead off the season. Shearing will follow, and next meat, tallow, hides, and skins, and other products of the freezing ;n----dustry. , , ■■■■'. The problem is how to hold what is now in store and to make accommodation for what will presently be coming in, in the absence of adequate shipping ? The Minister in Charge of Imperial Supplies has already Suggested that the tonnage difficulty for the immediate future is grave. On Ist August he said that in comparison with tho vast quantity of New Zealand produce held in store for .export and that that would be coming in, the number of ships that would bo available was so small a6to be "disquieting.". He added that action should be immediately taken to ascertain the true position with regard to the available freezing and cool storage space in the' Dominion, so as to deal with the question of providing for produce at the beginning o£ next season. "Next season" is opening in a. few days. Wool storage space already is very full in most of the valuing centres of the Dominion, and freezing stores are Hearing the point of congestion. Wool can be stored ia any,dry building safe from the risk of fire; but in tho storago o£ moat and butter, and " to .a large extent of cheese, insulation is imperative. _ With cheese tho maintenance of a certain torn- ■ peraturo is absolutely necessary if the condition and weight of the produce are to be maintained. In their case, specially built stores must bo provided, and these equipped, with plant that is not obtainable in a hurry. Hitherto anxiety has been shared to-.wool-growers and cheese and butter men, and latterly to those owning meat, by the Imperial Government's payment of purchase money, or : advances. With respectl to' tho riew terms for wool, growers can look to the Imperial Government for fully one year after the termination of the war for a staple market, and they will have no need to worry about tonnage. Prob. ably they have not forgotten how early in 1916 buyers .refused to pay prompt for wool bought in the 1 sale rooms until tho then shipping situation had improved. So far as space for wool carriage js concerned, it is very much worse to-day than was imaginable at that time. The wool men, then, are secure. It is fervently, hoped by some intimately connected with the financial sido of the export trade of the Dominion that in view of the present shortage of shipping and.the. practioal certainty that on the termination of the war the demand on tonnage will be far beyond its capacity to deal promptly with the trade offering, that the principle of purchase of produce for tho duration of the war will be extended for at least twelve months after hostilities • cease, that tho responsibility'for providing shipping shall remain during that period with the Imperial Government, the sole j»ui ohaser. This', principle, it is felt, should apply to meat, butter, and. cheese, also tallow and, other raw materials which up to tho present time have not been requisitioned by tho Imperial Government. If this could be done,'it would afford th© producing community, and through it the rest of the people of the Dominion, great relief from tHe uncertainty of tho present time, when, no, matter what the market prices overseas may be, there are not th© means available for. selling all our produce there. \ '.•.."

CROP OUTLOOK.—The National City Bank of New York reports for June, 1918, as folloWs: —"The outlook for crop* in this country is surprisingly fine, weather conditions having been almost , ideal to this time. Reports from the winter wheat States generally Bay that there is moisture enough in the ground, to mature the crop. • Tho situation, as to spring wheat is equally, favourable, and at this time a total wheat yield of 900 million bushels is indicated. . . . The cottonr outlook is favourable to one of the largest crops on record. Not only in this country, but in Canada, Australia,- India, Argentina, and in .Franco and England;, .all crop prospects at this time are exceptionally good."

DAIRY PRODUCE.—So far as can bo ascertained here nothing has yet been, received to indicate tho Imperial Government's -views as to the prices which it will pay for cheese and butter made during the 1918-19 season —assuming that such will bo requisitioned. Vancouver has offered an outlet for fairly largo shipments of butter, from Auckland. It is believed that Western Canada will draw upon New Zealand for butter, instead of on tho'eastern provinces, whence surplus production will be shipped to the Unatod Kingdom. The equalisation of profits on butter is now before factories- for their agreement. The ooncerns who have expressed themselves aga.rn.st the proposal do not go into two figures. It is expected, that a satisfactory solution of tho difficulty, will be reached.

HEMP. —Private advioes received from America state that the U.S. Government's purchase of Mexican sisal amounted to 500,000 bales, v.nd the price paid producers was some £18 per ton lower than that previously ruling, bringing the price down to. £70 per ton. Advices from London have also been received as-, to tho situation of New Zealand hemp in that market, to tho effect, that buyers are not interested in forward shipments of our fibre. Evports to France had been prohibited. Local prices for parcels for forward shipment, are approximately as follow:—Good fair £38 per ton, high fair £36, low fair £34, and £1 oxtra on each grado for Au^ust-Septomber delivery. Compared with prices rulins this time last yca.r tliero is a decided fall. On 7th August, 1917, f.o.b. prices were as follow:—Good fair £64 10s, high fair £65 10s, low fair£62 10s.

HIDES.—A decline of $d per pound on. previous salo rates on ox hides was recorded at last'local offerings. Cows, and yearlings, however, sold at an advance of id per pound. For calf skins there was keen competition at ljd to 2Jd per pound advance on rates obtained 1 a fortnight previously,. a.nd the range of prices for this line was from 16Jd to 17-Jd.

TALLOW.—Exports of tallow for the 12 months ended 30th June total 6875 tons, against 17,000 tona for tho corrcspoadiug

twelve months of 1917, At the last sales held here competition was very poor and there waa muoh tallow passed in. Tho quality, however, showed ft falling off. Tho drop was about Is 6d por owi.

GENERAL GOODS.—New season's Californian canned apricots show an advance of Is lOd per dozen, o.i.f.e. values, on last season's opening rates; canned pears ara also up by 3s lOd per dozen, and canned peaches by 2s 4d per dozen. California dried fruits have advanced 12Jd per cent, on opening prices of last year. Advice has ,been received of the prohibition of the export of Geneva and Holland's gin from the NetKerlands, via. London: From Maconochie's, herring pickers, it is learned that a limited quantity of fish wes being packed, but it was expected that all would be required for Home consumption. With regard to export it was argued that it was as well to have orders in hand, even though at the moment shipments outado of Great Britain were prohibited, as no permits could be obtained to ships unless applications are supported by evidence of overseas' demand.

TEA.—The Colombo market last week was firmer to dearer for everything but best Pekoes; mostly outside.markets were buying. The sale this week will be 2J millions, a fairly large offering, but only about a normal quantity in pre-war times.