TRADE AND FINANCE.

Manawatu Standard, Volume XLIII, Issue 421, 12 June 1922, Page 5

TRADE AND FINANCE.

BUSINESS GENERALLY DULL.

INSURANCE COMPANIES’ LOSSES

By Electric Telegraph,—Copyright. Received June 12, 8.5 a.m, LONDON, Juno 10. The nervousness about Ireland and the uncertainly regarding the reparations question have had a chilling effect upon tho stock markets. Business all round has been dull, gilt-edged stock being specially weak and lifeless, although the prices are below the levels justified by thd monetary position. Colonial stocks are also flat, mainly, owing to the weakness in the recently floated 'll per cent, loans, whereof the Now South Wales issue is now quoted at 75s discount. It is generally the colonial governments which have over-estimated the improvement in the scale of credit, and it is rumoured that the next colonial loan will bo issued at five per cent. Another factor contributing to tho weakness of gilt-edged stock is the fact that many people have been selling them in order to operate in homo rails, in which there was considerable activity until this week. There is also the fact that tho underwriters of the recent unsuccessful colonial and foreign issues have boon compelled to find the money to take up their liabilities. Tho large losses of tho insurance companies, notably over the bullion in the steamer Egypt, have had a depressing elfeet. The feature of the foreign exchange market has been tho strength sterling in New York, where an optimistic feeling apparently exists regarding our financial position. There lias also boon a marked appreciation in the value of sterling in all important European centres. THE FRUIT MARKETS. The dry weather is proving beneficial to the apple trade. Tho supplies of strawberries and cherries are small and their condition unsatisfactory. In a normal season tho middle of June sees our market flooded with cheap French cherries, but this year wo are getting few, and of these a largo proportion is almost worthless. Fair quantities of Kentish and Hampshire strawberries are coming forward, but they arc mostly small and tasteless owing to the absence of rain. The demand for Australian apples is well maintained, all sound fruit .selling well, but unfortunately brown heart is very prevalent, causing many rejections by purchasers. This is regarded as most serious by importers, some of whom say they will only make small advances next season in face of the possibility of a recurrence of this trouble. COMING WOOL SALES.

It is expected that the wool sales opening' on Tuesday will show little change from the May closing rates. ‘‘Bullish” factors are expecting a good United States demand and the probability of a rapid sale of merino surplus. Against these must be placed the fact that Bradford wants lower prices. The lop-makers are fairly well stocked against their contracts, and the reports that top-making sorts _ are cheaper in Australia make them cautious. The yarn trade remains active at moderately linn prices with the general turnover increasing. The piece goods trade is steadily improving. The heavy woollen trade'shows a marked improvement, especially in the export trade. Practically all the mills at Batcly are running the full forty-eight hours per week. —A. and N.Z. cable.