ON PASSING LONDON

Evening Post, Volume CIII, Issue 46, 24 February 1922, Page 8

ON PASSING LONDON

PROVINCIAL MARKET PROSPECTS

A leading financial house has received the following advices from its London office, in reference to seeking in England, markets outside of London for sale of Now Zealand produce :— "We are, of course, quite capable of handling practically any class of produce at any of the outlying ports, but, for several reasons, we prefer to deal with consignments on the London markets. Apart from others, our own experience, of outside markets is not very, satisfactory. "During the past few years there has been ample opportunity of making comparisons between auction sales of wpol held in London and those that, owing to special circumstances arising out of the war, have been held at Antwerp, Liverpool, Manchester and Hull, and London selling brokers have no hesitation in affirming that this experiment has shown that for all qualities and descriptions a better average has been obtained in London than elsewhere.

"So far as we cait ascertain, there is no indication (in fact, rather the contrary) that Bradford buyers generally would favour consignments to Manchester, \tliere we avo given to understand facilities at present are inadequate for the storing and proper showing of large quantities of wool. In regard to the Continental buyers, experience shows that they give very little support outside London, which they find very convenient, and, undoubtedly, is admirably suited for the shipment of their purchases to the Continent. We are quite convinced tli.it Manchester will never be popular with the Continental section of the trade.

"We are told ' that Manchester wool storage charges are practically the same as London. Very possibly Manchester affirms that they could obtaii) much quicker realisation than London, but, in. our opinion, this is extremely doubtful, as. it is more than probabla that the offeririgs of wools there would be regulated in exactly the same manner as London, i.e., ""Bawra," in conjunction with the Colonial Wool Merchants Association.

"We think this matter of congestion fa London has been a good deal exaggerated, both in Australia and New Zealand as a means of promoting local wool selling as well as the establishment of fresh auction centres. Congestions, of course, were entirely due to the abnormal conditions, and, we are. glad to say, are already becoming less acute. As a matter of fact, at no time during the past year have we encountered the slightest difficulty in securing warehouse occommodation for wool consignments.

"We are distinctly of opinion that the efforts which are being made .to create mor c markets on this side are prejudicial to the best interests of those concerned. It simply means that competition is dispersed, and the growers would b« deprived of the exceptional advantages, which are afforded by the undivided com. petition of the Home and foreign trad:e. "As regards consignments of frozen meat to Manchester, we have made exhaustive inquiries as to the markets there, and we find they are not of a very encouraging nature. We are told that a good proportion of the meat sold in that neighbourhood is home-killed, and any frozen is mostly sold through the agency of the big American houses. There ara only a few buyers of much importance, and the market is stated to be a very limited one. Mixed consignments, that is to say, all grades of meat, would be difficult to sell; the Midlands generally prefer the lower and cheaper qualities only, and really prime stuff would probably have to be railed down to London, in order tp obtain a satisfactory market price. It seems to us, therefore1, that Manchester is not a suitable port for the general run of frozen meat shipments from New Zealand, and we feet convinced that shippers should, as far as possible, continue sending to London."