Finance and Trade

Hawke's Bay Tribune, Volume XIV, Issue 117, 28 April 1924, Page 5

Finance and Trade

British Market Review FIRM TONE ON CHANCE. SYMPTOMS OF GENERAL IMPROVEMENT. IBj Cabte.— Preet AMootation—Copyright.) London, April 26. The Stock Exchange resumed work after the Easter holidays in a cheerful frame of mind and though the volume of business transacted has been only moderate the undertone remains firm. The near approach of our first Labour Budget has nad a restraining influence on the speculative markets, especially those likely to be affected by the interference with the McKenna duties, but the steadiness of the dollar and franc exchanges had a good effect on gilt-edgeds, which have maintained their recent rise, notably colonials. The phenomenal success of the Queensland loan cause much favourable comment, and it is regarded as evidence of th© enormous amount of money available for investment in trustee stocks, but the huge amount subscribed may be misleading to those who are unacquainted with Stock Exchange methods. It was apparent from the time the prospectus appeared that the loan would probably be covered and consequently the brokers made sure of getting allotments by applying for considerably larger quantities than they actually wanted. It also suggested that some heavy applications were put in as a'recognition of Mr. Theodore’s conduct in conciliating the pastoral companies and to show him what London financiers can do when their wishes are met. Another illustration of the plentifulness of money was afforded by the rapid subscription of the City of Sydney £1,000,000 loan. This was applied for six times over and subscribers will only receive 15 per cent, of their applications.

A BUTTER PROBLEM. The butter position is interesting Prices of colonial advanced about 12/this week, owing, according to the official report of the Produce Exchange, to 4 ‘speculative buying and stocks being withheld.” It seemed that certain New Zealand factories have cabled instructions to their agents here not to sell. There has been a good consumptive demand at the reduced retail prices of 16d and 18d per lb., but retailers are raising the price by twopence and this will probably curtail consumption. Traders confess they are puzzled over the situation. One leading importing firm writes:— “ft is estimated that there are 400,000 boxes of butter in cold store and 200,000 boxes-of New Zealand butter in boats in the river and to arrive before the end of the month, as well as Australian and Argentine, and though we consider prices came down a month too soon we think the present time is wrong in the interests of the producer to advance them. European butter is increasing daily and Ireland will soon be sending up good quantities, so we may. within the next month, have another slump, but this is entirely dependent upon the weather.”

APPLES. The apple market continues firm with a good demand for all good quality fruit. Unfortunately there is consider able bitter pip in parcels from West tern Australia. Victoria, Tasmania am l New Zealand, especially in Cox’s, an" prices are adversely affected. Black spot in Tasmanian apples, about which we hear so much, has so far been les: serious than expected, but knowledge of its existence has made buyer. 4 cautious, especially at Liverpool, where prices were so unsatisfactory that some importers withdrew their fruit from auction and sent part of it to other markets. Importers have been surprised to find that in some instances black spot is less noticeable in cases marked blemished than in those marked standard. Small parcel of Demosthenes’ Victorian apples have been transhipped to Hamburg when they met a good market considering their immaturity and lack of colour. Dunn’s realised 14/9 to to 16/6, Cleo patras 13/3 to 13/9, Jonathans 12/9 to 15/-. Regarding the prospects of the market in England, importers are generally hopeful, for supplies ol American are approaching the end and our soft fruits arc likely to be late as despite the brief spell of warmth at Easter time our season is quite a month behind normal.

THE FUTURE HOPEFUL. Regarding the prospects of trade generally, the “Economist,” in a monthly review, takes a decidedly optimistic view. The writer says:— “The nervousness as to the trade situa tion which was apparent a month ago has disappeared and given place to a tone of renewed confidence. Such optimism is natural as the result of the continual bqoking of orders and the steady absorption of work people into employment, a process which has reduced the numbers on the unemployment insurance register by 240,000 since the beginning of the yeat. This rate of improvement is considerably more rapid than can be accounted for by ordinary seasonal changes, and it is significant that the improvement is even more marked in the index afforded by the percentage of trade unionists unemployed, especially those associated with the metallurgical group. The output of coal, iron and steel reached very high figures in March, showing a substantial improvement, even in pig iron. The weekly traffic receipts on the main railways also show' a gratifying increase since the beginning of the year. The one series of statistics which does not reflect an improvement is the foreign trade return. This confirms the opinion that an unusually large portion of the work upon which industry was engaged during March arose out of home orders, winch have been considerably stimulated by the action of the railway companies and the operation of trade facilities and other Government measures. It is gratifying to record that weaving towns in Lancashire are beginning to show signs of an appreciable improvement. Shipbuilding, however, remains thoroughly depressed.”—(A. and N.Z.)