MONEY MARKET

Feilding Star, Volume XVIII, Issue 4589, 15 May 1922, Page 2

MONEY MARKET

AND TRADE CONDITIONS. THE PAST WEEK AT HOME. SURPRISING UPKEEP OF WOOL PRICES . (By Electric Cable—Copyright.) (Aust.-N.Z. Cable Association.) (Received May 15, 9 a.m.) London, May 13. International politics had a somewhat disturbing effect on Stock Exchange operations early in the week, but Mr Lloyd George’s and M. Bartliou’s denials of the sensational reports of a rupture in the Entente Cord kilo quickly dissipated the feeling of uneasiness, and the week finishes with a distinct disposition to tako a hopeful view. NO WEAKNESS. Business has certainly been on a reduced scale, but no weakness is apparent anywhere, and gilt-edged shares closed quite firm, with colonials tending upwards. Homo securities, especially railway shares, received encouragement front the confident tone of Mr Baldwin’s speech on Thursday., but industrials do not yet show any increased activity. Wireless shares are a notable exception, with a strong demand and rising prices, doubtless owing to the recent wireless telephone dcveolpmeiit. MONEY PLENTIFUL. The money market is still plentifully supplied, and rumours are again current that tlie Government is likely to take advantage of the present case to issue a large funding loan in the comparatively near future. Apart from the ofi million pounds now under process of conversion and the large sum outstanding in Treasury bills, the Government has to deal wit'll about six hundred million pound debt maturing within the next five years, and there are also two thousand million pounds of 5 per cent war loan. It is suggested that the Government’s funding proposal wifi offer holders of war loan shares the opportunity of exchanging into soml longer dated loan. NO REACTION IN WOOL. There is not the slightest sign of any reaction in wool, and it is expected that the present sales close on Thursday with prices at the highest point. Surprise is expressed at this strength of the market, considering that the manufacturing end of the trade is by no means confident. But a strong speculative spirit is abroad in the raw material market, apparently induced by the expectation of an early passage of the new United States tariff, and the hope that the Genoa discussions will open up the channels for tho export of large quantities to Russia. The latter factor, however, is largely responsible for the recent appreciation of the position of the low and medium qunlitesi of wool. BAD APPLES.

The apple trade is causing some anxiety among importers. During the last fortnight upwards- of 400,000 cases of Australian and No\v Zealand apples have arrived, oi which some were decidedly in an unsatisfactory condition, causing buyers to exercise much caution. It is also l stated that there were some weak holders, who were compelled to clear their stocks below the proper market rates. Fortunately no further arrivals are due for about 10 days, so that importers hope the market will be cleared before then and buyers become keen again. The weather conditions are cold, so that all European fruits are very backward. Thus things ought to improve for the latter half of the Australian season, if only the apples come in good condition. Further instances are reported of apples which externally appear sound turning brown inside, the last case being from tilers.s. Port Sydney, of which the insurance surveyors had to examine a considerable quantity, with unsatisn factory results. There is.much controversy regarding ’he cause, shipowners contend that it is due tp an inherent vice in the apple, and was not due to any fault of the ships. Some importers assert that it is due to too close storage, or the .non-circu-lation air in tho holds, pointing out that the trouble only occurred in certain vessels, whereas fruits shipped in other vessels at tho same time and from the samo orchards arrived in perfectly good condition.. The matter is regarded as so serious as likely to cause underwriters to increase the premiums or to refuse apple risks altogether.