COMMERCIAL SUMMARY

Northern Advocate, 16 June 1930, Page 5

COMMERCIAL SUMMARY

STOCK EXCHANGE DULL HEAVY DEMAND FOR GOLD. INDUSTRIES DEPRESSED. Press Association—By Electric Telegraph—Copyright.) (Received 0.58 a.m.) LONDON, June 14.

The high hopes entertained a fortnight ago of the early reduction of the bank rate to 2-J per cent, have been dashed to the ground by the adverse movement of foreign exchanges and heavy demands for gold from foreign countries, especially Franco. It now appears likely that stringent conditions will prevail in the money mar ket all this month, and this expectation has caused renewed dullness on the Stock Exchange, especially in the gilt-edged market.

The depression spread to other sections. The slump in Wall Street last, week-end, and the renewed weakness there, have caused a serious depression in industrials, which lias been accentuated by the poor res'ults shown in reports of many trading companies. Among those declaring lower dividends are several connected with the Australian trade.-

For instance, Messrs Lovell and Christmas, who are large importers of Australian and New Zealand butter, state that owing to the decrease in profits resulting from a fall in the value of the commodities dealt in, “they arc not paying a final dividend on ordinary shares,” the only distribution being the interim two per cent, paid in January. This company has been paying a ton per cent, dividend for some years past. Reparations Loan.

The only satisfactory event of the week has been the success of the German Government’s reparations" loan, of roughly £60,000,000, both here and on the Continent. Our share of this amounted to £20,000,000 in 54 percent. bonds at £OO. The lists opened yesterday morning and closed throe hours later, the amount having been heavily oversubscribed. The French, Swedish and Italian portions of the loan were also oversubscribed. Apple Market.

Apple prices have been keeping up remarkably well considering the heavy supplies, and the demand remains satisfactory. Within a few days, however, large supplies’ of strawberries are likely to, arrive on the. markets and their competition will - naturally affect the sales of apples. In view of the criticism passed on some Victorian apples, it is only right to point out that many Victorian apples are entirely satisfactory. One of the- leading brokers at the 'Spitalflelds market, in a weekly report says: “.Some Victorian fruit, packed under a community brand, has been of fair quality and met with a good demand;• This fruit was packed in Canadian • standard eases and strikingly labelled. It opened up most attractively and' buyers continually expressed appreciation of the change in style of packing.” Butter Buyers Active.

A welcome change has come over the butter market since tho Whitsun holidays, and during the last few days buyers have been more active than for a long time past.

Mr Charles Wilson, a member of tho Australian Dairy Produce Board, has returned to London after a two months’ tour of the Continent and the industrial centres of Great Britain, investigating the position of the butter industry. Interviewed by the Australian Press, he sffid he gathered the impression that Continental countries had increased. their herds largely, especially Germany. During his visit to the North of England he found all multiple shops selling Danish and New Zealand and a limited quantity of Australian at Is 3d per lb., without any strong demand. Reviewing the position in London today, Mr Wilson estimated that the visible stocks in Great Britain exceeded 1,000,009 boxes, but thought that the market had now touched bottom. Blenders and multiple shops arc now operating freely, apparently thinking it. desirable to provide for tho -autumn and winter requirements while prices are moderate. Their operations had raised the prices of choicest Now Zealand butter to 134/ and Australian to 131/. These operations, of course, would only moan a transfer of stocks in cold store from wholesale to multiple shops and blenders, and unless this butter is consumed before the end of the season its presence here will influence tho values of the new season’s market.