FINANCE' REVIEW

Evening Post, Volume C, Issue 47, 24 August 1920, Page 7

FINANCE' REVIEW

THE PROSPECTS OF PRODUCE

FALL IN FREIGHTS,

PROPOSAL TO LAY UP TONNAGE.

(UNITED TRIiSS ASSOCIATION.—COTYMOHT.) , ' LONDON, 21st August. The Stock Exchange is quiet. The un-' certainty of the European ojitlook is making everyone cautions, but . prices generally are .firm, especially for giltudged securities. There' 'is moderate inquiry for colonial stocks, chiefly New South Wales and New Zealand. There are some signs of a revival of interesit in speculative stocks, which lately have been/ much neglected. A feature of the exchange market is the steady depreciation of Allied currencies, especially Italian \ The opening of ths London wool Eiales is awaited with the keenest interest. There ar°. signs of somewhat rrore active Home competition for good wools, particularly shafty 'merinos, buo* then; is jittle interest in low-grade- wools, as corresponding varieties of Argentine are .'kbout 6d ib chsiper. The huge Governinent stocks, in addition to the new Australian and Home clips, are acting as a. drag on the market, causing an impression that, there will be some decline in, values, but the supply of good merinos is considered to be relatively small, and not to exceed tha absorbable- quantity. The United States • is sending some orders, and thereJias been more inquiry from that country than for some time past. The Continental position is, difficult, owing to the unfavourable exchange. Apparently those countries that can pay are about full of goods, and those that cannot.6till want a considerable quantity. The falling market is causing buyeas to hold off, hoping.for a further reduction, »ot because they do not want the goods.

Business in metals is generally restricted by the European political situation and Labour uncertainties in Great Britain. A feature of the 'copper market, has been the reappearance of Japan as a. seller of fairly .large quantities for shipment during the next two months. Xho position of tin is regarded as fairly sound. Prices probably would have advanced but for the European situation and Labour questions. There has been some buying on American account, and a moderate Continental demand, but the Home trade is slack. The lead supplies in sight are apparently ample for immediate needs, but future supplies are somewhat doubtful. ;, Thers may be a scarcity if consumption improves. Meanwhile business with customers here is very disappointing. The same applies to spelter. The Germans are offering large supplies for early shipment. It is reported that German producers are now permitted to export 25 per cent, of their output free of export duty.

The present outlook regarding butter is that supplies will be very short for the next three months, but thence forward there should be material improvement. English and Irish butters are fetching very high prices, but consumption is limited on, that account. The Government is negotiating for the purchase of the Danish oufput. Germany, America, France, Belgium, Norway, and Sweden are also anxious to buy. The two first-named are offering prices" considerably above our bids. Large } supplies of Canadian cheese are still arriving, with a consequent steady decline in values. The Canadian factories are only getting about 25 cents per lb, which they say does not cover the cost of production, so it is likely that they will largely make butter instead. Freights continue to be" depressed, with a. decreasing demand for steamers. The recent decline in Australian full cargo rates 'has brought earnings to such a point that with the continuously increasing expenses owners are faced with the question whether it is not cheaper to lay up steamers.. It is. rumoured that the Government contemplates the .laying \ip of some German boats which lately have been working at the barest profit.