COMMERCIAL

New Zealand Herald, Volume LXII, Issue 19098, 17 August 1925, Page 7

COMMERCIAL

LONDON TRADE REVIEW. MONEY MARKET EASIER. THE REDUCED BANK RATE. AN OPTIMISTIC OUTLO.OK. Australian and N.Z. Cablo Association. (Reed. G. 5 p.m.) LONDON. Aug. 15. Thanks to the more favourable monetary conditions brought about by last week's reduction in the bank rato there has been a considerable increaso in business on the London Stock Exchange. The markets havo shown an activity which is quite unusual in the middle of the holiday season.

Gilt-edged stocks havo hardened all round. Colonial stocks, notably recent issues, are particularly firm. There was much talk about a further reduction in tho bank rate this week, and, although this did not eventuate, prices held thoir ground remarkably well. The general impression is that the rate will bo reduced to 4 per cent, beforo long. The lowering of the bank rata had no material effect on tho dollar exchange rate. Discussing this point the Spectator's well-informed financial correspondent says: "Although foreign balances here are supposed to bo fairly large, tho lower bank rate has not. up to the present. occasioned any serious weakening in the sterling rate In the United States the movement has been hailed as an indication of the financial stability of Britain, and it has even tended to arrest the upward movement in money ratC3 which seemed about to begin. The correspondent adds: "It looks &3 if one cffoct of the lower bank rate might be to maintain easier monetary conditions in all the leading centres during the autumn than at one time seemed possible. This should bo helpful to trade throughout the world. Preservatives in Foodstuffs. The Ministry of Hoalth has published the regulations regarding tho prohibition of the use of preservatives in cortain foodstuffs. The date for the coming into operation of tho regulation regarding butter has been fixed for January. 1928. This delay is in order to allow time for an adjustment of methods and processes, and for a clearance of existing stocks. Among tho articles which may contain preservatives is fruit pulp which is to be allowed to contain from 1500 to 2000 parts per 1,000,000 of sulphur dioxide. Australian pulp importers regard this permission as unsatisfactory, because Australian pulp is made from sound fruit and is shipped without preservatives, whereas Continental pulps, especially those coming from Holland, consist largely of damaged fruits which could uot bo shipped without preservatives. It is said that instances havo occurred of foreign pulps shipped to London from Rotterdam arriving in an unsound condition. The sanitary authorities have refused to admit plums which havo been reshipped to Rotterdam, where thoy havo been pulped and preservative has been added beforo they havo been sent back to London and admitted without question. That this matter is important for Australia is shown by tho fact that, out of an average importation of fruit pulp in the years 1913 and 1920 to 1923 inclusive, amounting to 7760 tons, Australia's average was 1200 tons. There are prospects of somo activity in Australian canned fruits, for an importing firm which recently bought 140.000 cases in Australia is advertising them freely in the grocery newspapers. Dried Fruit and Australian Wine. Tho dried fruit market is firm for raisins and sultanas and fair quantifies arc being sold at lato rates. Stocks, however, are somewhat heavy. The quantity of sultanas in stock on July 31 amounted to 5039 tons. This caused fears in some quarters lest they might meet with serious competition from Smyrna sultanas next month, but, according to a produce markets review, thorg is a continuance of pessimistic reports from Smyrna regarding the decreased tonnago of the now crop owing to ono cause or another. Therefore it is thought moro than probable that higher prices aro inevitable in tho near future. Australian wines havo attracted much attention at the Empiro Exhibition according to tho Wine Trade Review. Each of tho respective types exhibited has shared in the demand, even thoso of tho champagno type. Inquiries are constantly being received from visitors as to where they can repeat their orders in their own areas.

Several applications have been received from London and provincial firms who are willing to lake up agencies for Australian wine concerns which arc not already represented here.

| GORDON AND GOTCH, LTD. NEW ISSUE SUBSCRIBED. The directors of Gordon and Gotch (Australasia), Limited, recently decided to piaco a further 100,000 ordinary shares on tho market. The issue closed on July 51, and was fully subscribed. NEW LOCAL INDUSTRIES. PROGRESS AND PROSPECTS. A brief account is given in tho annual report of the Department of Industries and Commerce of the progress of soveral new industries, each of which is represented by one establishment. Tho Onakaka (Golden Bay) works produced about 1000 tons of first-grade pig iron last year. This was all used by Dominion foundries, and W3s reported to be of excellent quality. Additional equipment has been installed, and the anticipated production of tho now plant is 11,000 tons per annum. This company will be ablo to produce the Viholo of tho Dominion's requirements. A silk hosiery plant has been established in Wellington. Over 40 hands were employed at the commencement in 1924, and already extensions to the works are being made. The output of electrical insulators at Temuka has been douhled during tho past year, and Government departments and power boards arc now recognising the excellent quality of this product. CpmCetition from overseas is extremely keen, ut increased demand and output are enabling the company to reduce costs of production. Tho cattle-cake and lin c eed oil industry was sorely taxed in tho early part of tho year by overseas competition, especially in linseed oils. Tho outlook is now more promising, and business is increasing. Tlio company anticipates that within the next two years sufficient linseed will bo grown in tho Dominion to keep 'he mill fully supplied and independent of imported raw material. The margarine industry is finding it necessary to make large extensions to its buildings and plant, and has spent con siderablo sums in erecting up-to-date build ings and iirtailing new machinery and purifying plant. The glass-bottle industry, established in Auckland a few years ago, is progressing fairly satisfactorily. It is proposed to establish another glassmaking works in the South Island, near Mount Somcrs, where there are excellent deposits of the necessary raw materials. A company has already been formed for this object. Referring to prospective industries, the report mentions plans for the treatment of whales for by-poducts as well as for oil; the manufacture of noil-poisonous whitelead; and the plants for the canning of benzine and other oils by a large plant at Wellington, which is expected to give constant employment to hundreds of people. Preliminary negotiations have been opened with prospective migrants who propose establishing a section of tho cutlery industry in tlxo Dominion.

THE LONDON MARKETS. FROZEN MEAT. Australian and N.Z. Cable Association. (Recti. 6.5 LONDON. Aug. 15Sheep.—Canterbury, medium, 74d; North Island, light, 7 3-8 d j medium, 7d; New Zealand, owes, s,^d; Patagonian, light, 6 5-8 d; medium, 5 7-8 d; owes, sid. Lambs.—North Island: Firsts, 10 7-8 d; Patagonian, none offering. Frozen Beef. —Now Zealand: Hinds, sJid; Australian, hinds, E^d. Chilled Beef.—Argentine: Foros, 'ld; binds, 6d; others unchanged.

Dalgety and Company, Limited, report having roceived the following cablegram from their London house, dated August 13, regarding the frozen meat market:— New Zealand prime crossbred lamb: Cantorburv, heavy 91,-d, light l.l|d; North Island, heavy 9id, light The demand for lamb is fair. The market is weaker. New Zealand prime crossbred mutton: Canterbury, heavy 6M, light 75d; North Island, heavy 62d, light 7 : id; 'lhe demand for New Zealand mutton runs principally on light weights. Tho market is weak. Quotation: New Zealand prime ox beef, hinds 52d, fores 4d. The demand for New Zealand beef is better. The market is firm. COTTON, RUBBER, HEMP. (Last week's quotations in parentheses.) Cotton.—-September delivery, 12.41 d (12.84 d) per lb. Rubber.—Para, 40d (48d) por lb; plantation, (43J, to 44d) ; smoked, 41 id (43Jd to 4<Ud). Jute.—August shipments, £42 17s 6d (£l3) per ton. Hemp.—July-August shipments, £3B 10s (£3B) per ton. Copra.—August-September shipments, £29 17s 6d (£29 17s 6d, July-August\ per ton. Linseed 0i1.—£43 5s (£43) per ton. Turpentine.—69s 9d (67 3d) per cwt. Antimony.—English, £75 to £BS (£75 to £BS) per tou; foreign, £65 to £65 10s (£65 ss). SUGAR IN AUSTRALIA. REDUCTION IN PRICE PENDING. Australian and N.Z, Cable Association. (R?cd. 7.5 p.m.) MELBOURNE, Aug. IG. As a result, of an agreement between tho Commonwealth and Queensland Governments tho wholesale price of sugar will bo reduced to £37 6s 8d from September CHICAGO WHEAT MARKET. Australian and N. 22. Cablo Association. (Rocd. 5.5 n.nj.) CHICAGO. Aug. 15. Wheat.—September, 1 dollar 59 1-8 cents per bushel; December, 1 dollar 57i cents; May, 1 dollar cents. AUCKLAND COMPANIES THREE NEW REGISTRATIONS. Three companies, .all private, were registered in Auckland on Saturday. Details aro as follow : Caley Motors, Ltd., garage proprietors and motor-car engineers at To Kuiti. Canital, £2IOO. Shareholders: Percy Caley and Eric D. Sommervillo, 1050 shares each.

Oiniha Hostel, Ltd. Objects: To acquire land and to erect .a hostel at Orniha. Capital, £3OOO. Shareholders: G. J. Baker, 100 shares; R. W. Forster, 50; B. Robinson, 50; A. Wilson, 25; W. J. McMiken, 25; R. Beange, 25; S. Wilson, 25.

Lichfield, Ltd., agents and brokers. Capital, £7OO. Shareholders: Joan iL Bullock, 690 sharesj Flo Hewitt., one share. CARELESSNESS IN PACKING. HANDICAP TO FRUIT TRADE. A glaring instanco of how Australia's export trade can bo ruined through careless packing methods was brought to light on the liner Osterley at Fremantlo recently. While a quantity of fruit was boing slung into one of the vessel's cargo holds for shipment oversea a case of oranges was accidentally broken. From among tho contents one of tho ship's officers selected a specimen of fruit which was scarcely one and a quarter inches in diameter. Tho orange was taken to the purser's office, whore it was the object of much interest. It was contended by tho ship's officers that Australian grading and packing methods were worse to-day than they wero several years ago, and tho South African exporters were a long way ahead of Australian In regard to the methods adopted for marketing their products. WELLINGTON WOOLLEN MILLS. A SATISFACTORY YEAR. Tho report of Kio Wellington Woollen Manufacturing Company shows a net profit for tho year ended Juno 30. of £29,933, against £31,586, a decreaso of £1653. To tho net profit is added £1836 brought forward from tho previous year, making available for distribution £31,768. The sum of £4OOO has been added to the reservo fund, bringing that fund up to £52,000; tho dividend for tho year absorbs £25,862, of which £12,618 was paid a3 an interim dividend, leaving £1907 to be carried forward. Tho directors state that tho year has been one of exceptional difficulty, and add " Early in the wool season prices for raw materia! reached values never before recorded in Now Zealand, while at the samo timo the market for finished goods was so congested by importations that buyers were comparatively indifferent as to placing forward orders, oven without advance in cost. This unusual combination of circumstances caused uncertainty as to the wool buying policy, but that adopted by your directors proved advantageous, and better results wero obtained than at one period of tho year seemed possible."