BRITISH MARKETS

Evening Star, Issue 18394, 1 October 1923, Page 5

BRITISH MARKETS

STOCK EXCHANGE TRANSACTIONS.

BUTTER DEMAND GOOD. CHEESE IN SHORT SUPPLY. WOOL PROSPECTS DISCUSSED. Press Association—By Telegraph—Copyright LONDON, September 29. (Received October 1, at 8.5 a.m.) The principal feature of interest on the Stock Exchange during the past week has been the buoyancy of French bonds following the collapse of passive resistance in the Ruhr. The news of Germany’s surrender led to a general recovery of prices, and the rapid improvement in the value of the French franc gave a sharp impetus to French bonds of nil kinds. This movement is being stimulated by a good demand from Paris. The strength, however, lias not been fully maintained, for it is recognised that Franco has yet to solve her economic problems, and Germany fi pavmont of reparations may bo further delayed by the unsettled state of affairs there.

Even German bonds showed some signs of recovery early in the week, possibly on account of the abandonment of passive resistance, but more probably the buying of German 3 per cents, which took place waa attributable to hopes that the institution of a now German currency would involve favorable treatment for loan holders.

Victoria’s loan success had a stimulating effect on the gilt-edged market, but the talk of other loans coming caused giltedged stocks to close slightly below the value of the best industrials.

There has been quite fin extensive boom in tea shares.

In the foreign exchange market the chief feature has been the improvement in the Allied currencies, which, though not fully maintained, is decidedly welcome. The recovery in the French franc i.s attributed largely to sentiment, and the reaction was quite n natural sequence after the first wave of optimism arising from Germany’s surrender had passed away. Tho German exchange fluctuates daily in hundreds of millions of marks, but the quotations are quite normal. A good illustration of tho degradation of tho mark was witnessed in the London streets, whore putter merchants are selling 100.000mark notes for 2d each, and 1,000,000mark notes for 6d.

The butter market gets stronger every day. Tho actual stocks of best butter here are very small, and for tho two months little can arrive from Australia and New Zealand. Tho Danish production is rapidlv decreasing, the arrivals from that country being now a little more than half what they were in the summer. We fire faced with a shortage of -supplies, and the general expectation is that prices will harden still further. Retailers will probably raise their prices to 2s per lb next week, but it is not expected that this increase will have much effect on the consumption. Tho cheese position is very strong. New Zealand cheese is practically cleared from the importers’ stores, and only one small lot is stall to arrive. Tho English and Scottish makes have been sold out six weeks earlier than was tho case last year, and they have mostly been consumed. The stocks in Canada are estimated to ho very similar in amount to those of last year. The market there is very firm, and prices are advancing. Our consumption is estimated at about 300,000 full-sized cheeses monthly, and a considerable -shortage is probable for the next two months, eo prices for tho Canadian article and any New Zealand cheese held over are expected to harden. Writing on tho wool outlook, wellknown authority says that tho taking of a broad view of the future is rendered somewhat obscure because of the continued depression at home. There is considerable improvement in the demand tor cross-bred sorts, but tho call for merinos is still quite absent. This causes great concern, and is duo to tho continued depression in tho fine worsted trade. Tho general contention is that part of this is occasioned bv prices being too high; hut this is an open question. It is doubtful whether there would bo any increase in tho trade if prices wore lower for raw material Meanwhile the trend seems to he towards increasing tho use of cross-breds, especially medium grades.

in the coming season the position of merinoes will depend very on the strength or otherwise of the American demand, the possibilities of which are not clear, ft is practically certain that both merinoes and cross-brcds will be repaired by America, in considerable quantity, especially if their mills can bo fully employed, as seems probable. The financial position of the homo market widely varies. At the raw material end the credit is exceptionally good, but there is still financial stringency and difficulty at the piece goods end, especially in the morchanting section.—A. and N.Z. Cable.