MONEY AND MARKETS

Evening Star, Issue 22783, 4 May 1931, Page 11

MONEY AND MARKETS

LONDON'S FORTNIGHTLY REPORT BUDGET REACTIONS Press Association—By Telegraph—Copyright. LONDON, May 2. (Received May 4, at 9 a.m.) The Stock Exchange account, which closed on Thursday, was very unsatisfactory for almost all departments except gilt-edged stocks, which rallied strongly after the disclosure of the Budget secrets. As soon as it was known that there was to be no addition to the direct taxation, all British funds moved upwards, in some cases almost two points, and remained firm. Brewery and tobacco shares also recovered when it was known that Mr Snowden had not imposed fresh taxation. Even oil shares, which had been very depressed, became a shade steadier, as the additional tax was less than was anticipated, but apart from these industrial shares generally have given way seriously under a number of adverse happenings. The chief among these was the renewed liquidation from Wall street, following the failure of two important firms there and unsatisfactory advices from the Continent. Other depressing events have been a fall in commodity prices, the decreased earnings of several large trading concerns, and the consequent reduction in dividends, and in some cases tho passing of them. As an illustration of the unsatisfactory position, it may be mentioned that the new capital issues in April, according to statistics compiled by the Midland Bank, were only £1,687,000, compared with £21,270,000 in April, 1930.

According to the ‘ Financial News,’ however, in some directions an improvement is now apparent. The number of the unemployed on April 20 was 2,513,856, which is the lowest since December 22, 1930, compared with the peak figure of 2,691,937 ou March 9. Freight rates have strengthened, and idle shipping lias decreased. In the last fortnight alone some 250 to 280 vessels, representing a tonnage of from 1,500,000 to 1,800,000, have been chartered.

Greater strength has been shown in the wheat and maize markets. The retail trade figures in the last month make a somewhat better showing. The ‘ Financial News ’ sums up that, though the situation is still full of difficulty and is capable of alarming deterioration, it is incorrect to say that no hopeful sign exists. APPLES. The apple trade has improved somewhat in the last few days, and, though there are still large supplies of American apples available, Australian shipments met with good demand at rather better prices. The quality of the apples from all the States shows considerable improvement on the early arrivals in some previous years, especially in regard to maturity and colour. This is particularly the case with Tasmanian apples, which are vastly batter than in previous seasons. Apparently shippers have taken to heart tho advice given last year, and the results are eminently satisfactory - . It is noteworthy that Tasmanian cooking apples have been selling remarkably well, Alfristons fetching higher prices than dessert apples. This is due to the shortage of English cookers, notably *- j famous Bramley seedlings, which are usually available till well on in the season. This year, however, the supplies of this variety are practically exhausted, consequently there has been a great run on apples like Alfristons and Wellingtons. BUTTER. Although the butter consumption remains good, prices are again easier, for the arrivals have been heavy'. The stocks in cold store are now nearly 300,000 boxes. Tho Continental production is growing larger, supplies from the Irish Free State are coming along, and tho first shipments from Siberia are due next week, so, although the low retail prices are creating a good demand, there are little prospects of an improvement in prices. CHEESE. The position of the cheese market is also unsatisfactory. The demand for New Zealand and Australian cheese has been poor, and the prices for both are round about 50s, while Canadian is over 70s. Tho difference in prices between these cheeses at this time of tho year is usually' about 12s, and the importers attribute the greater margin to the fact that New Zealand and Australian cheese is not of such good quality as it ought to be. Tho New Zealand Dairy Produce Importers’ Association has taken tho matter up, and is circularising the factories, pointing out where it is dissatisfied and suggesting remedies.