COMMERCIAL & FINANCIAL

Evening Post, Volume XCVII, Issue 36, 13 February 1919, Page 11

COMMERCIAL & FINANCIAL

Evening Post, Thursday

So far as tho city is concerned merchants report a continuance of the dullness •of trade resulting from the hand-to-mouth policy practised by customers till the trend of the markets is more clearly seen. In the country there is a slight improvement, but even this does not extend beyond necessary lines. Merchants generally report that as yet there has been no movement favouring buyers in the Home markets. Freight reductions have been immediately balanced by advances made since tho armistice, but they are at a loss to account for this. Soft goods are very dull lately, for retail houses show no disposition to stock more than is positively essential at the prices lately ruling. Wi-iting early in December Messrs. John Dunn, Son, and Co. (through Messrs Brown and Dureau, Ltd.) stated tho American position i-egarding cotton goods thus: "There have been some cancellations of Government orders for cotton goods, mostly heavy,fabrics, such as duck and sail cloth, and cloths of low construction suitable for hospital uses, of all of which large stocks are reported in Government warehouses, consequently these goods are now more freely offered. The present Government prices are to be-oom-t-inued to, Ist January, and while there is good inquiry for staple poods, _ and many mills are well sold ahead, the situation on the whole is a. waiting one. It is the opinion of most_ commission houses that trade will be active as soon as' the present uncertainties, are-removed; as it is, prices are well maintained at Government levels, though some concessions are reported at both first and second, handß-'

SUPPLY OF CORNSACKS—A tortnight ago the Government, on the advice of the Board of Trade, fixe_ the price of cornsaoks at Wellington and Lyttelton at Is 7d and Is 6d for 48in and smaller sizes respectively. That is for the current season. For next season it was proposed to go further and purchase supplies of sacks for New Zeala—d requirements. This latter scheme has, it is understood, been abandoned, in view of the uncertainty of the jute market since tho armistice was signed.

DAIRY PRODUCE—Detailed working instructions for the disposal of this season's butter are expected to be issued in the course of a few days. -One of the points on which there was disoussian before settlement of the details is understood to have been as to the equalisation fund and the control to be exercised over it by the Dominion Butter Committee. Returns for'the 1917-18 equalisation fund are ooming in slowly, and greater promnt,nass in forwarding these figures is desirable if payments from the fund are not to be delayed for some months. The shipment of bofJi butter and cheese is proceeding satisfactorily, and the storage position gives no cause for anxiety. According to a Melbourne exchange, the question of providing sufficient butter for winter requirements is giving some concern to the "pool" authorities. Practically all the surplus is now finding its way into the winter "pool," but the quantities at present available after local needs have been satisfied are ,said to be particularly limited. In the opinion of traders the position may be redeemed substantially, however, 'if a satisfactory rainfall eventuates in March. . Advice received in New Zealand is to the effect that export to the East has been stopped except of grades below "choicest." ' Importations from New Zealand are not allowed at present by the Imperial Government, and if the rainfall should not eventuate the Australian position 'will be extremely aoute. Working instructions for handling this season's cheese aro understood to be oomploted, and will bo ready for issue in tho course of a few days.

HEMP—The position with regard ta hemp is unchanged since last week. There is still no demand, and as practically no millers have contracts they are sending their hemp into store in the hope that buyers w_l bo operating again in a week or two. No\ improvement in conditions is looked for by brokers till the industrial situation in London clears. In tho meantime it is impossible ; to quote even nominal prices..

GRAIN AND PRODUCE.—White cats are offering at 5s 5d f.o.b. south. Good seed Algerians aro not in great supply, and prices are good. There is no maize on the market,-" and whole fowl wheat is difficult to obtain, even at enhanced values. Milling wheat remains in the same position as formerly, »nd millers are commencing to enquire what is the Government decision with regard to flour when the new season's grain comes to be dealt with. The potato crop*in the South Island, up to the present, .has proved good. The prices asked are :£8 10s to £10 a ton. In tho North Island tho market is firm,.owing to the prospect of doing business with Australia, where a few parcels have been sent. The quoted price is £10.

WOOL.—WooI is coming forward at present as quickly as was anticipated, and all workers are having a very busy time owing to the set-back to the season following tho bad weather and the epidemic. Valuation is proceeding steadily, and lots so far dealt with indicate that the west coast clip is equal to laßt year's standard, but the wool from the Wairarapa is.heavy in condition and tender. This is due to the snow and bad weather generally, and means an average reduction of l|d per lb. in values. Commenting upon tho news of the resumption of London sales in April, .the Melbourne Age states:— "This marks \a return to fairly normal conditions earlier than was generally expected. The decision of the British authorities may probably have been influenced by the success of similar methods adopted in the United States of America in December la6t. America did not take long to make up hor mind as'to how best to arrive at the actual value of the staple, and as auction sales of wool only oame into vogue in the States sinoc tho war commenced, they have now probably come to stay. It is stated that 80,000 bales will be dealt with at tho openiug auctions in London, and larger quantities in the following ( months, which points to-a. continuance of ealos. Owing to tho demand for civilian requirements having- been rigorously reduced to a minimum for some months past, spirited competition and good prices may be looked for, and further details aTe eagerly awaited. Doubtless sonio control will bo exercised in respect to neutral countrios purchasing, while' the attitude of ' the French section may afford some.clue to the actual extent of the damage done by the Huns to the large manufacturing installations in the textile industrial districts, which lay for so long under the heel of oppression. Other important news is that the restrictions on the importation into Great Britain of, and dealings' in, South African wool, have been removed. It will be remembered that the South African wool-growers virtually rejected the Imperial Government's offer to purchase their wool on the samo terms as that which governed the acquisition of the Australasian clip, and that offer has. now been withdrawn."

HIDES—-There is a steady demand from Australia for good heavy ox hides.

TEA—Throughout January the quality offering in Colombo was extremely poor and uninteresting to buyers generally. Now advioe is received that the quality is_ steadily improving, which is usual at" this time of the year. Sales continue on tho small side, averaging about one million pounds a week, which is far below the usual offering. Presumably the Controller is drawing large supplies from Colombo, which confirms the cable received in December stating that ho would be drawing large supplies in January and February. Prices have been fully maintained, notwithstanding the fact that Australasia has not been an active buyer in tho market owing to' the heavy stocks which havo been hold hero and in the Commonwealth. The principal demand has been for good quality teas, of which there ha-s been a very small selection. Shipments frorii Colombo to Australasia for the month totalled onlj three-quarters of a million pounds of tea, against the 'usual monthly shipments of 2j to I million pounds. Inquiries have "elicited. the information that there it no indica-' tion of * reduction in freight rates between Colombo and Australasia. The naming of tea from Ceylon is almost en-

tirely in the hands of ono company. As indicating tho relative importance of New Zealand trade in this commodity it may be mentioned that this country easily leads in the consumption of tea per head of population, jvith a return of B|lb annually.

IRON AND STEEL.—Writing of the American iron an.d steel markets on. 7th December, Messrs. John Dunn and Co. (through their local agents, Messrs. Brown and Dureau, Ltd.) mentioned that it would take many months to reach anything like' pre-war conditions. "The allocation of steely and iron, by which all users were, rationed or cut off entirely, and the priority system controlling the order of filling requisitions, have both been abolished, and mills are now free-to make shipments as may suit them, except where orders remain for certain departments of the Government. Government cancellations. have been much in evidence, particularly in shell 'steol ; barb wire, rails, and other railroad equipment. Government cancellations cannot be refused, and they affect an ever-widening cirole of producers. Mills are, however,. uniformly refusing to allow cancellations where Government orders are not concerned, cancellations from,any. cause being distinctly prohibited by the ironclad form of contract to which buyers havo had to agiee for two or three y ears' past." Theallimportant question of price control was to be taken up shortly with Government officials. Opinion seemed to be growing that the Government would leave the domestic ma.Tket free after Ist January, but Messrs. Dunn and Son had formerly been of opinion that this would not happen - for another three months. 'It is well to remember that this priee -regulation has never applied to commercial export business, and tha,t the removal of Government control will o_b/ indirectly affect export prioes. There is much uncertainty is to the oourse of domestio prices should the control be removed. Probably they will decline more or less, the Government fixed price for some goods being much higher in proportion than for others. The export price must of necessity depend upon foreign competition, and it is too early yet. to determine on what level it will be met. Pending Government action on prices there is a rathor general inclination to do nothing, and very few orders, either for export or domestic trade, are being placed."