COMMERCIAL REVIEW

Northern Advocate, 18 November 1929, Page 5

COMMERCIAL REVIEW

CASH FOR CONVERSION LOAN MONEY RATES EASIER. STOCK EXCHANGE DEPRESSED.

(United Press Association—By F.lectric Telegraph—Copyright.) (Received !)..‘ 1 ,2 a.m.)

LONDON, November 16

Although no announcement has yet been made regarding the result of the

j Government’s new five per cent. Conversion Loan which closed yesterday, |it is generally believed that the cash [ subscriptions have been satisfactory. During the last few days the prospects of easier money rates have stimulated applicants and large amounts have been .subscribed. The position is Icing further helped by the reduction in the New York rate. This has given rise to the expectation that our own bank rate may be lowered next Thursday.

j D. spit' 1 the improved monetary position, tlio Stock Exchange lias been Icpressed, chlctly owing to the renewed weakness of the New York and '’out mental Stock Exchanges. Gilt■dgeds, alone, have maintained a firm front, industrials having generally suffered from a considerable amount of forced liquidation. This has even cen Hie case with many stocks of an admittedly high status, which are unually able to withstand shocks bii.h affect the more speculative ’ ues. OUTLOOK FOR WOOL.

The opening of the last of the scries of wool sales for the year, next Thursday, is awaited with more than usual interest. Most traders expect values to rule at-least ten per cent, above tlio lowest point of the past series, and seeing how well wool is selling in overseas centres this expectation c cems likely to be realised. The tone all-round is more hopeful, and the improvement ' in Bradford for 64 tops, which have now recovered almost 6d ner lb from the lowest figures, leads to the hope that confidence will be strengthened further. PLENTY OF WHEAT.

Huge imports of wheat continue to arrive, and last week's shipments to this country amounted to .102,000 quarters, practically all from Argen tina. It is estimated that there is now : n Britain throe times as much wheat as held normally or .enough to supply the needs of the population for about hree months. Altogether,,in the firs ten months of the year, Argentina has sent ns .°.7,000,0n0 ewts, of wheat, which is about 2,000,000 more than from Canada -and Australia combined. The millers are benefiting from the position, but there is no indication of any further fall in the price of bread, a 41bs loaf in London costing Bid.

BUTTER BUYERS UNEASY

The butter position shows no improvement, and the downward movement has been aeeentuated, according to the market report of one of the leading importers, by offers made from Australia for prompt shipment at. 155/ to 1 HO/ c.i.f. This has made buyers uneasy and they arc not at all keen to pay 12/ to 14/ more for their current supplies. It is apparent that all retailors are now working down their cold-stored stocks to the lowest vpossiblc basis, and it is only reasonable to expect an improved demand before long. A NEW VENTURE. An interesting development in the provision trade is the commencement of operations by Empire Dairies Ltd., which is an amalgamation of tho Overseas Farmers’ Co-operative Federation and Amalgamated Dairies Ltd., two of the, largest dairy produce interests in Australia and Now Zealand, respectively. Empire Dairies Ltd. has just gone into occupation of an imposing eight-storeyed building on a commanding position at the corner of Tooley Street. The basement and ground floor provide excellent , showrooms for butter, cheese and eggs, the floors above being used as offices. This establishment has in common the selling of flour, and it is hoped to eliminate wasteful marketing competition between Australian and New Zealand butter and choose.

Eventually, similar floors will be established in the principal marketing centres of Great Britain.