FINANCE AND TRADE

Manawatu Times, Volume XLIX, Issue 2713, 22 June 1925, Page 7

FINANCE AND TRADE

Dismal Time On London 'Change HOT WEATHER HELPS BUTTER AND CHEESE. [By Electric Cable —Copyright.] [Aust. and N.Z. Cable Association.] (Received Sunday 7 p.m) LONDON. June 20. There has been no Improvement or the Stock Exchange and the condltions of the gilt-edged market remair much the same as a fortnight ago except that prices have weakened Further, there has been a steady flov of selling, mostly on behalf of underwriters, in order to meet their commitments in respect to several recenl issues which still stand at a discount of over 25/- per cent, notably Nen Zealand, New South Wales, and London County Council loans. The result of this state of affairs is that borrowers this week have been compelled tc offer more favourable terms and the issue of two millions worth of five per cent by a synthetic Ammonia Nitrate Company under the Trade Facilities Act, has been made at ninety-eight. The boom in rubber shares has been checked by a relapse in the price of raw material. The foreign bonds market has been somewhat upset by the disturbances in Shanghai, which have naturally caused a heavy fall in Chinese bonds. The only satisfactory feature has been the distinct revival of Home railway shares, apparently induced by thj optimistic speech of Viscount Churchill, chairman of the Great-Western Railway, who spoke hopefully of the prospects of the oouth Wales coal trade and the substantial results arising from economics effected by the Great-Western directors. Among the new industrial issues is one of Australian interest, Union Cold Storage Company’s 13,220,000 six per cent, one pound preference shares. In explaining the collapse of the Italian Exchange, the “Statist” says; “Speculation apparently had little to do with depreciation. Most Italian buying orders for foreign currencies must be considered genuine trade requirements. The present movement is probably seasonal in character and its main cause must be sought in, the comparative failure of the last Italian wheat crop, and consequent imports of grain that are now being made in unusually large quantities. What has happened is the strongest argument that can be advanced for Italy’s immediate return to the gold standard..” Cool Stores Clicked, but Good Demand Despite the fact that stocks of butter in cold store are very heavy, and arrivals of Australian and New Zealand continue large, there has been a good demand lately, with a hardening pf .prices. Three weeks of hot weather have curtained both Home and Continental supplies, and buyers apparently have come to the conclusion that there is little prospect of prices going lower. Consequently, they have ;ome on the market and purchased treely. The hot weather also had a good effect on the cheese market, for he consumption of cheese always -ises with the temperature, and as prospective arrivals are small, the mtlook is decidedly favourable. Strawberries as Barrow Fruit. The apple trade Is feeling the effect )f the competition of soft fruits, parIcularly strawberries, which now are icing marketed freely. The quality, lowevcr, is not equal to standard, the jerries being mostly small and deficient in flavour, owing to the dry veathcr, but the costermongers are aking them in place of apples, conlequently the prices of the lower jualities of apples have weakened, and he decline has been accentuated by he fact that many Tasmanian and /ictorian shipments are of indifferent luallty. Best sorts, particularly keepng varieties like Sturmers, continue to neet an excellent demand, and make good prices, and the Continent is takng considerable quantities of welljoioured showy fruit.

Caution in Bradford. Regarding 1 the wool outlook, a Bradford correspondent writes that the amount of new business which producers of yarns and piece goods arc receiving is insufficient to make them anticipate a marked and sustained revival just yet; consequently they are adhering to the policy of doing no more than cover actual needs which are very limited. They are quite content to see Australia’s policy regarding the liquidation of the balance of her wool on hand.