BRITAIN’S TRADE.

Hawera Star, Volume XLV, 25 May 1925, Page 5

BRITAIN’S TRADE.

FINANCE AND STOCKS

AVEEKLY MARKET RE\ T IEW

BY ‘CABLE —PRESS ASSOCIATION COPYRIGHT. LONDON, May 23.

After a period oi dullness, an times almost amounting to depression, the Stock Exchange during the last day or two has shown a more confident tone, thanks mainly to the easier monetary conditions and the rumour of a inflow of bullion into- the Bank of England This brought about a general advance, and gilt-edged and home rails shared in the improvement. Speculative stocks are still, however, very dull and the little rubber shares boom of a fortnight ago died down, following on the fluctuations of raw material on profit-taking sales. ! The feature of the Stock Exchange has been the small public subscription for several recent large issues, with the result that underwriters are still holding large stocks, lliey were Jett with about £10,000,000 of the New Zealand and London County Council loans, which arc both quoted at-heavy discounts, but despite this there is no difficulty in underwritifig the New South Wales loan of £6,500,000. This is satisfactory as showing the underwriters’ confidence in the situation and outlook. The South, African banks announce that the rates foFcaiding money to the Union can lie brought clown to par, while hills payable on demand be bought at one-eighth per cent, discount. This is the immediate result ot South Africa’s return to the gold currency, and of the fact that Rand producers have been sending a- large portion of their output to the Pretoria, mint for conversion into sovereigns. It is interesting to repaU that in 19L0 the exchange rate for remitting funds to South Africa was seven per cent, premium. . . The ample market remains wonderfully firm, and, notwithstanding heavy supplies, prices remain at a level which should prove saisfactory to the grower, the shipper and the importer alike. .So for twenty-three apple steamers have arrived in British ports from Australia and New Zealand, bringing roughly a million cases. These have been sold at an average price between 15s and 16s per case. The steamers have carried the fruit well, and it has generally been of excellent quality. Brown heart has been conspicuous by its absence, and though some varieties in the earlier arrivals showed signs oi bitter-pip and some blaekspot, it is apparent that these faults have been on a much lower scale than in some recent years, rhe Continental demand for apples has declined somewhat as the season advances, and some importers anticipate less home inquiry after the Derby week has passed. but the general impression is that there ought not to be any material decline in values until soft fruits begin to arrive in large quantities about three weeks’ hence. The pear market has not been so satisfactor- manlv because many arrived too ripe, but all in good condition fetched high prices. Some importers are raising the point as to whether the price of 12s to 13s a case is remunerative. The Economist, in its monthly trade review, savs: “Although the present trade conditions do ! not cal 1 for so much pessimism as some people have made out. they ar e certainly not calculated to raise much enthusiasm. Seasonal changes at this time of the year affect some industries favourably and .some unfavourably, but the -situation as a whole has shown little change during the last month. AVTiile there is no evidence that ground is being, lost, industry shows little ability to make definite headway , “Mr AVinston Churchill’s Budget has so far affected industry to but a .slight extent, apart from the announcement of the return to the gold standard. The return to, the gold standard was anticrinated in the city, but preparations in nl’ cases to deal with the new conditions have not proved thoroughly comnlete. A transitory period of doubt an' l hesitation has occurred,' and is affectin'-- the city business to a marked extent, hut this should speedily give place to one or more normal conditions. The utliniate effect on British industry of the Treasurer’s step will doubtless considerable, and we believe beneficial, but will naturally require some time for working out.” UNFAVOURABLE TRADE BALANCE. BETWEEN U.S.A. AND BRITAIN NEW YORK, May 23. Britain must increase her markets in the United States if she is to meet her indebtedness to the American Government- and maintain hoi' position as America’s principal purchaser. So the British Ambassador (Sir Esme Howard) u,! ( | members of the Iron and Steel Institute. lie added that un'ess England's unfavourable trade balance with lhe United States was greatly reduced they would have to buy elsewhere. Although the United States and Britain were each other’s customers, the hitter’s imports were twice as much from America as she exported to the United States, ho said, and lie asserted that the canalisation of British imports and exports would tend to restore the norma] flow of the wor’d’s commerce nm J he a great step towards the return of the world to normal. N.S.W. LOAN. A GOOD IMPRESSION. LONDON, May 23. The Dailv Telegraph says that following noon the failure of the Now Zealand and London County Council loans, New South AVn’es was wise in offering more favourable terms. Investors still apparently want 5 pgr cent, for trustee securities. | The Financial Times says the terms lof the New South AA’ales loan created a good impression,