TRADE AND FINANCE

Evening Star, Issue 18052, 21 August 1922, Page 4

TRADE AND FINANCE

CMBUiSHS IK BRITAIN. STOCK EXCHANGE BUOYANCY. WORKING CLASS ECONOMISING. Press Association—By Telegraph—Copyright LONDON, August 19. (Received August 21, at 9.40 a.m.) Contrary to what might have been expected, tho failure of the Reparations Conference did not bring any reaction on tho London Stock Exchange.. It certainly caused disappointment, bus no depression; and those who feared heavy Hnuidations were agreeably surprised to find that there was no pressure to sell, even from Paris, whence it was feared many selling orders would oome. On tiro contrary, when the Paris Bourse reopened on Wednesday after two days’ holiday, we received buying orders from France, and these had such an excellent effect, although the money market, was very tight, that there was no appreciable decline in Stock Exchange values.

The Stock Exchainre Committee has fixed September .1 for the settlement of pre-war accounts. Tho total commitments when the Exchange closed in July, 1914, were £106,000,000. Since the armistice these have been steadily cleared off, and the amount outstanding is now less than. £2,000,000, so that tho final settlement next month cannot have much influence on market, conditions, although it may entail hardship on individuals who have .accounts open in Grand Trank and South American Rails. The foreign exchange market has been demoralised by the breakdown of tho Reparations Conference, and, with tho German mark daily falling to fresh depths of degradation, there has been a collapse in most, of the loading European currencies. In this condition of affairs it is satisfactory that the value of the pound sterling in tho United States continues to appreciate, apparently because tho Americans have confidence in British determination to face the fads of the European situation. At any rate America shows no inclination to gamble for a fall in the British pound. COLONIAL PRODUCE PROSPECTS. The butter market is hardening as colonial supplies of tho past season diminish, and prices aro again higher. New Zealand choicest salted butter is quoted at 206 s to 208 s, exceptionally good at 210 s; unsalted at 220 s to 224 s per cwt. Tho outlook appears good, especially as Denmark is receiving more inquiry for butter from France, Belgium, and Switzerland ; but, if retailers advance tho price above 2s per lb, t]io demand will bo affected, Prospects •’’’for the opening of tho coming Australian and New Zealand dairy produce season appear to ho distinctly favorable, for it seems certain that there will not be much butter here when new season colonial supplies begin to arrive.

Tlio action of importers of Australian dried fruits in deciding to hold out for better prices has had the desired effect, and the trade shows a marked improvement in all directions. Currants especially are moving freely, and several importers have cleared their stocks at the prices fixed at the meeting on August 11. Sultanas have also been selling steadily at the fixed] price. Importers are highly gratified at the success which has attended their action, and express the hope that the result will prevent any (recurrence of “ slaughtering ” prices.

The demand for canned fruits continues disappointing, and sales have been small. The main cause of the unsatisfactory position is tho unseasonable weather since May, which has restricted picnics, boating, and similar outdoor functions, Another contributory factor is tho diminished spending power of the working classes owing to unemployment and the lower wages. They are now being compelled to give, up luxuries, among which canned fruits must be included. Wo are also having a .glut of fresh fruit.—A. and N.Z. Cable.