COMMERCIAL.

New Zealand Herald, Volume LIII, Issue 16266, 27 June 1916, Page 5

COMMERCIAL.

LONDON PRODUCE MARKETS.

HIGH COMMISSIONER'S REPORT.

CW ITOBGKtfH.-PnESS ASSOCIATION.]

T,™ tt- , el"n-gxov, Monday. dated Sd? iSSiOnCr ' 3 market "Port, ed L ° ndon ' J«ne 24, is as follows:-!

MEAT. Bmal o r si ,?T la, l d muUon and lam *> - i" *S *' bUt - there » a lar * e de ™* . prices aT O , remain Dncha^d - Lower muuL ar ° ein S ' aCCepted for Argentine Pile ZT '"ft ° win t0 "creasing" supplies of home-killed mutton and beef, and Argentine beef. Mutton: New Zealand, "*' ewe, BidArgentine, 10Jd. ' u^ mb: NeW ZCaland ' d; Argentine,

forl N T Zealand bull > w « ds nd, S, Bid. gentine chilled ' hinds 9 « d ;

BUTTER. saltod° W! i, 9 ™*' but stead y- Danish 134s 1* Sto 17&; Siberiaa ' stocks light, stei 4 ?i Irish aild Australian, market mart ; T J l ' 156S t0 160s - Ncw Zealand, market steady. Salted, 168s to 170s j good to fine quality salted, 164s to 1665. irgenSa?alS?* eSteady - Salted ' 154s to 156s • unsaltod, 158s to 160s.

CHEESE. of'Jric 3 ar i e d^ Wea L er and tho tcnd «n=y aLSrtTwhM ° W So rardß ; Cau adian, weak 988 to 102s J coloured, 98s lS S H <*&»* q'uiet the marklt b J°i ***", Zealand ees ° Ks, "J** weaker, and there is less demand. Pnces are irregular. Higher sff Whit to sales mad 6 earlier this to 104, W v -l ft t0 106s : coloured. 99 WcL. UDl^ ? tatea flatS ' White ' &6s to IUUs; coloured, 96s to 100s.

HEMP. faSfr^H 61 " qUet ' With a in ™3 k bujers for forward shipment, caused by reports of largo supply and large shipments from Manila/ Good fair New Zealand, £48 10s; fair, £47- Gov-ermnent-graded fair Manila, £50; 'coarse, tm. June to August shipment: Good fair New ZeiJand, £47 10s; fair, £46-Government-graded fair Manila, £48 : coarse, £45. The output of hemp at Manila for the week ended last Saturday was 17,000 bales. '

WHEAT. The market is weak and inactive. Canadian : Arrived, 48s; afloat, 465. Argentine, afloat, 495. OATS. The market is very quiet. Argentine, arrived, 28s. WOOL. The market remains firm. The Army Council is purchasing the English wool clip for military purposes. THE MONEY MARKET., EFFECT OF THE BUDGET. In a reference to the Budget and its effect on the money market the New Zealand Trade Review says: What the future of the money market will be is exceedingly difficult to forecast in view of the exceptional circumstances existing and the various taxation proposals, some very drastic, which are outlined in the Financial Statement. Among the principal of these is a proposal to restrict interest rates and to enforce the employment within the Dominion of funds, whether in the hands of the banks, com- j panics, or private people. This proposal, j in the rough state in which it is before us at present, savours of an attempt to control the inexorable law of supply and demand. At present the banks as a whole have more funds at their disposal than they can soundly and satisfactorily em- : ploy here, and it is not only sound banking policy, but practically a "necessity that the surplus should be utilised remuneratively somewhere where it will still be readily available in case of need at short notice. The effect of the proposed change in mortgage tax is liable to firm lending rates as large lending companies will net under 5-' per cent, when lending at 6 per cent., and that leaves little margin over the 4A per cent, free of tax which is being paid on Government loans, so that 6 per cent. will hardly be a paying rate for mortgages. It is proposed to abolish the mortagage tax and substitute an income tax on the interest earned. The present tax is 89 4d on each £100 invested, but income tax at the proposed Is 8d in the pound on say £6 per cent, would bring in 10s, while companies at 3s 8d ii. the pound would pay 225, as compared with the present 8s 4d. This is going to hit life insurance companies, as they have huge commitments at premiums based on their earning power, and consequently bonuses will be very much reduced, if not stopped altogether in some cases. Nothing is said about the mortgagor's side of the case, and it remains to be seen whether he will still be allowed to deduct the mortgage from the value of his land for taxation— probably he will not, and if so he should at any rate be allowed to deduct interest paid from his income for taxation purposes. A war loan of £12,000,000 is proposed by the Government, and part of this is to be raised locally. We think this should meet with a ready response, as file terms will be attractive and money is plentiful, also from a patriotic spirit many will be ready to take a share in helping the financing of the war.

WELLINGTON PRODUCE MARKET. IBT TELEGRAPH.—OWN CORRESPONDENT.! Wellington*, Monday. An exceptionally pood demand is ruling for both dessert apples and pears, Golden Russet apples especially selling well, also Winter Neils and Cole pears. Choice dessert apples, 10s to lis a case, Dougherty's 8s 6d to 9s 6d a case, prime 7s to 8s; cookers, choice 5s to 6s a case, prime 4s to 4s 6d ; pears, choice 10s to lis a case, prime 8s to 9s, stewing 4s 6d to ss; passions, 5s to 6s a box; .lemons, 8s to 9s a case; potatoes, prime 6s 6d to 7s per cwt; onions, 7s 3d to 7s 6d per cwt; eggs, fresh Is 8d per dozen, preserved Is sd. _____ "