MONEY AND TRADE

Evening Post, Volume C, Issue 22, 26 July 1920, Page 7

MONEY AND TRADE

A GENERAL SURVEY

UNEASY STOCK'EXCHANGE

(«NNS» PRESS ASSOCIATION.—C«FIMSBT.}

(AUSTRALIAN - NEW ZEALAND CABLB ASSOCIATION.)

(Received Midnight, 25th July.)

LONDON, 23rd July.

The money, market is dull and featureless, and likely to remain so, as the fear of a higher bank rate in the autumn appears to have entirely disappeared, The course of foreign exchanges, especially the fall in American, has caused some unsettlement, but the American is to a large extent quite normal, due to the preparation to pay for produce which Britain and the Continent will import largely from America in the dosing months of the year.

It is unlikely that the value of the pound sterling in New York will reach a very low level, as the trade balance is improving.

Mr. Lloyd George's speech on the Polish question, coupled with disturbances in Ireland, has caused some disquietude of the London Stock Eixchange, where business was considerably restricted; but prices are generally fairly maintained.

Reports from Germany state that Mexico is endeavouring to regain her position as the largest silver producer in the world, and is arranging to have all mines worked (even those hitherto regarded as unprofitable), partly at the Government's expense. «

Wheat prospects have greatly improved during last month. It is now certain that America, Canada, Argentina, and India all. have surpluses. FALL IN FREIGHTS. Freights continue to decline, as the supply of cargo steamers largely exceeds the demand, particularly in the American trade. One steamer was chartered early in June to carry wheat from Montreal to Antwerp at 16s 6d per quarter. The same steamer wants a similar charter at the end of August, and the best price obtainable is 11s.

The position of the tallow market is full of interest. Good authorities believe that the last decline has Lrought values down to a basis at which business can be done. Meanwhile, Australian shipments are arriving for which purchasers paid over 100s per cwt. forward, whereas the present value- is only about 60s per owt.; but the last of these contracts terminates at the end of the month. Considerable quantities were purchased by the Dutch at prices above 100 a months ago. It was intended for Germany, but most of this was sent back, as the Germans could' not afford the price. It is now likely that tliea'e will be a brisk demand for Germany with some recovery in prices. PROPOSED BOILING DOWN. Trade in colonial meat is restricted by the large quantity of inferior offered. Buyers are mostly refusing to take any but the best. Suggestion is made in certain quarters that the Government would do well to- boil down its huge accumulation of stale meat, both here and in Australia and New Zealand, rather than face the inevitable cost of storage, interest, and further depreciation. Advocates oi. this proposal point out that the probably actual loss on boiling down would bo less than the Government would incur if it held on. It would also enable the expensive establishment of the Minis-ti-y of Food to be dispensed with. This plan would clear the decks for new season's New Zealand meat and prevent j further lowering of the reputation- of colonial meat, which is. already greatly prejudiced by the marketing of inferior stuff. The Government holds about sixty thousand tons of meat here, and it is estimated that at the present rate of shipment it wjJL still hold 3,000,000 carcases in New Zealand at the end of December. ; Business in the Bradford wool market is chiefly of hand-to-mouth description. Buyers are waiting for prices to reach the lowest level. Spinners are not disposed to buy forward, but will probably be compelled to purchase in the course of a few weeks. There is a possibility of the woollen mills operatives striking at the end of the month for higher wages, which employers will refuse, contending that the recent offer of 10 per cent, advance was generous. )