COMMERCIAL.

New Zealand Herald, Volume LXII, Issue 19144, 9 October 1925, Page 7

COMMERCIAL.

WHOLESALE AND RETAIL. EFFECT OF STRIKE ON TRADE, THE PRODUCE MARKETS.

By far the most important commercial event of the week has been the departure of the Kent and the Ruahine, the latter serving the double purpose of relieving the local freezing stores and also curtailing the long gap that was threatened in the arrival of butter on the London market. With the knowledge of this large shipment actually on the way, holders in London will now require to be less careful in rationing their supplies, and by this means they will be able to retain & larger share of their connection than they could otherwise attempt. Interest is now very largely centred in the Waimana, as this vessel loaded ovcw a month ago, and it' was calculated that her papers would reach London yesterday. The strike lias had a depressing effect on trade generally, not so much on account of the actual harm felt directly, but by reason of the knowledge that any long continuation would be disastrous to the whole country. The departure of the Ruahine, after loading a full cargo in Auckland alone, was the subject of some discussion in commercial circles yesterday, as it directs : attention to the deplorable waste of time ordinarily incurred through Home liners usually having to discharge at the four main ports at least, and then having to go the whole round again, in addition to a few smaller ports. It has been calculated that this waste of time entails an extra expense of anything from 10 to 20 per cent, in the cost of the round trip, and that this ought not to take place. It is pointed out that with a steamer leaving every week there is no necessity for each to call at each port, and that produce outward, as well as general merchandise inward, could be far more economically carried, with a better opportunity to compete against foreign shipping, if the ports of call were drastically cut down, instead of wasting time and money in wandering up and down the coast for several weeks. In making this proposal it is not suggested the smaller ports should be cut out. Many of them have improved their harbours, and are justly entitled to regular visits from overseas steamers. But it is argued that there is no economy in allowing a steamer to call at six or eight different ports, to pick up at each place only a small proportion of the cargo waiting, when a few days afterwards another steamer calls at exactly the same ports for a few more tons. The cheapest way for the ships, and therefore the cheapest way for the producers of New Zealand would be to restrict the loading in London to one port, or at the most to two, and similarly at this end restrict the loading to a very few ports in close proximity to each other. Instead of antagonising the smaller ports, where there is a natural objection to any proposal to concentrate the London cargo at the four main ports, it is held that the shipping companies are now acting in sufficiently close harmony, to arrange a time-table that will allow one steamer to load at Auckland and Gisborne, the next at Wellington and Wanganui, another at Lyttelton and Nelson, and so on, returning the next round to Auckland and Napier, Wellington and New Plymouth, and so on. By this means quicker despatch could be given, and the round trip made in a shorter time that would enable the cost to be substantially reduced, besides saving all the risks involved in going backwards and forwards on a coast which has been responsible for far more wrecks than have occurred between New Zealand and the United Kingdom. It has been suggested that the present position would afford a unique opportunity to bring in this system, a system which proved quite workable during the last part of the war, and that if it was done there would not be the delay that would otherwise occur next February and March, when all these steamers would ordinarily be due to load here again during the flush of the produce season, This is deemed a most urgent and important consideration. WOOL. Wool has not been affected much by the strike, as very little is stored in Auckland. A few farmers were proposing to start shearing this week, but the weather did not improve sufficiently to them to carry out their intention. In Wellington, however, there are fair stocks of wool, and agents will be glad to get these away before the new clips begin to come in. The wool market is still in a rather depressed State, although values show no further weakening. A temporary stoppage j in the wool textile industry in the North ai England during the summer illustrated the precarious position of the trade. Fortunately the stoppage did not last long enough to cause any serious trouble, but in some cases, and particularly in branches of the export trade, there waa a good deal of inconvenience, and the possibility of cancellations owing to late deliveries became a source of anxiety to many firms. On account of the summer holidays, it was difficult to estimate the effects of the resumption of work in the mills, but it is certain that more inquiry ensued for wool in the bale. The steady decline in exports of wool textiles, as revealed month by month in the Board of Trade returns of overseas trade, is indication of the changed conditions under which business is being done this year aa compared with last year. In practically every section there is a decline, and there is little in the general state of the world's markets to encourage the hope that any marked recovery can be expected durjng the remainder of the year. Exports of tops showed a decrease of over 10,000,0001b., compared with the first seven months of 1924, and exports of worsted yarn are more than 4,000,0001b. less. A decrease of over 19,000,000 square yards in exports of woollen and worsted fabrics is also a serious matter to all sections of the industry. Unfortunately the general conditions in Britain are fiuch that it is difficult to see how any developments in the Home markets can be expected to counterbalance the loss of overj seas trade. The latest figures supplied by tiie Ministry of Labour showed 1,269.800 persons unemployed on August 10, and this total did not include the very large number of workers who were employed on halftime. It seems clear that before any progress can be made there will have to be a wider outlet for British goods of all descriptions, IRON AND STEEL. The United States Steel Company reported a reduction of 170,000 tons of steel produced during July, but it was expected that when the August returns were made up they would show a rather larger production. Domestic demand has been holding up remarkably well, and the railroads are now coming in for large buying, which will be a material help. The automobile industry also seems to be picking up, and that will entail a larger consumption of steel The steel companies of America admit that export trade is extremely dull, and only occasional orders are being secured. This is readily attributed to Britain and Belgium being able, to offer their steel goods at lower prices than the United States, and until these competitive prices can be met it is not anticipated that there can bs any increase in trade, POTATOES. The market is fairly firm at lie ex store, and title advance in the South last week will be reflected in the next shipment to arrive. Available supplies are very limited in the South, and shippers seem inclined to hold for the scarcity that is often manifest at the end of the season. Auckland merchants are only importing what they require from boat to boat, as new potatoes would soon be arriving in larger quantities if the weather of Wednesday continued, instead of turning into another cold snap. Fairly good samples of new were selling yesterday at 22s wholesale, and retailing at 3d per lb. The active cause of firmn ss in the price of old appears B'ill to be the tiydney inquiry, and if this demand dropped off there would probably be a reaction in the price. Seed potatoes are dull of sale. Local stocks are only nght. so that if a recovery in the weather brought in a good demand there would be some difficulty in meeting it. Practicallv unprocurable on the spot. The few available were mostly reserved for the Island steamer, and no trade will be domg until tho Aorangi arrives, from which vessel the present quotation will be_ 25s per crate. A large' cargo is expected, but a good proportion of it was booked long ago it a slightly lower figure, some of it as early as last April. It is thought that some would be discharged at Suva but the other groups are buying in Auckland, fhere is now no source of supply except Canada, so that the Aorangi shipment will hr e to Inst until the Niagara arrives a month later, and consequently the t fiial advance in price may be looked for during that period.

OATS. On account of the email stocks held, the market is extremeiy firm in the South. In olden days there was usually a weakening at this tira© of the year, when an attempt had to be made to reduce store stocks, in order to make room for wool. Now. However, the stocks of oats are almost negligible from this point of view, and any held are quoted at firm rates. Local price is firm at 5s 6d to 5a 0d in small lots. CHAFF. No alteration in the poaition. A steady demand continues, the good quantities are arriving from Tasmania and the South. FOWL WHEAT. Limited stocks are held here, barely sufficient to last, till the duty-free wheat arrives from Australia. Good quality is quoted at Ss 3d ex store. BRAN, POLLARD. ETC. A steadv demand continues, the most noticeable change in fodder orders lately bmug an improved demand for linseed and ether calf foods. This was quite expected, as the sharp rise in beef has caused a good many farmers to keep rather more of their calves than usual this year. MAIZE. Ample stocks are arriving from Gisborne and the Bay of Plenty, and the market is a shade weaker at Gs (id to 6s 7d on the wharf in wholesale lines. This is in spite of the uncertainty of the arrival of a shipment of South African maize held up in Australia. KAURI GUM, Beat gradoa of white gum are firm, although little- busine-ss is doing, (rood chips are in demand foi linoleum making', and prices are fairly firm. Medium blacks are neglected, and thei« is only a small inquiry for best blacks. Bush gum is almost unprocurable, and any arriving is keenly bought. The departure of the Ruahine was a great relief to the gum trade, as this vessel had quite a goc-d quantity aboard. It is significant of the careful buving in London that a recent cabi*s indicated that unless this vessel got awa»* without any more delay it would be necessary to buy from other London holders, and this confirms the information that mcit London traders are working on very small stocks. Th«fce is no question that manufacturers like, kauri, when they can get it at a moderate price, but there has been a tendency «n their part, as well as on the part of merchants, not to carry any heavy stocks of anything, so that any revival of business activity would probably bo reflected in a better demand for kauri gum. Unfortunately the position of the market at this end is not s,t all sound, for everything is upset by the passing of the Kauri Gum Control Bill. 'This is supposed to come into operation next April, and its provisions are so drastic that it has virtually put a stop to all the old arrangements cunent between Auckland buyers and the country storekeepers. Hitherto it has been customary for make advances against gum, but this must necessarily stop now that the Control Board is to be given power to take possession of any gum held, for its value as a security ceases to exist. Some Auckland brokers have already advised their clients to the effect that they are ceasing advances at once. DAIRY PRODUCE PRICES. LONDON MARKET VALUES. The New Zealand Loan and Mercantile Agency Company, Limited, has received the following cablegram from its London house dated October 7jNew Zealand butter, choicest salted and unsalted, 232s to 236s per cwt. The market is quiet. Cheese, 114s to 116s per cwt. There are small supplies. ACTIVITY IN RUBBER. SHARES RISE IN LONDON. Australian and N.Z. Cable Association. (Reed. 5.5 p.m.) LONDON. Oct. 7. Plantation rubber is quoted to-day at 47d a lb., compared with 41|d on Saturday, There is much activity in all rubber shares. The Hon. W. Ormsby Gore, UnderSecretary for the Dominions, promised a deputation from the rubber trade that he would submit to his chief, Mr. L. C. M. S. Amery, their request for the abolition of the restriction scheme. WOOL SALES IN SYDNEY. MARKET VERY FIRM. Australian and N.Z. Cable Association. (Reed. 11.5 P.m.) SYDNEY, Oct. 8. At the closing wool sales of the week in Sydney prices were very firm at the best" point reached this season. Full clearances were effected. Greasy Merino sold to 28Jd. LONDON WOOL SALES. MARKET REMAINS FIRM. Australian and N.Z. Cable Association. (Reed. 5.5 p.m.) LONDON, Oct. 7. At the London wool sales to-day |here was a good selection of Merinos and crossbreds. The market was firm, all sections operating. The following New Zealand lots sold:—" Waratah at 25d to 24|d, " Burwood " at 19d. LONDON WHEAT MARKET. Australian and N.Z. Cable Association. (Reed. 5.5 p.m.) LONDON, Oct. 7. Wheat.—Cargoes firmed 6d to Is on strong American and Winnipeg advices. Inquiry continues for new crop Australian and for Indian. Parcels are in moderate demand at fid to 9d up. Liverpool futures: October, 10s 6§d per cental; December, 10s Id; March, 9s 11 jd. CHICAGO WHEAT MARKET. Australian and N.Z. Cable Association. (Reed. 5.5 p.m.) CHICAGO. Oct. 7. Wheat. —December, new, 1 dollar 38 3 8 cents per bushel; old, 1 dollar 37.) cents. May. new, 1 dollar 38 7-8 cents; old, 1 dollar 38 1-8 cents. LONDON TALLOW SALES, Australian and N.Z. Cable Association. (Reed. 5.5 p.m.) LONDON* Oct, 7. At the London tallow sales 890 casks were offered and 135 sold. Prices were unchanged. CALCUTTA ' TEA SALES. Australian and N.Z. Cable Association. (Reed. 5.5 p.m.) DELHI, Oct. 7, At the Calcutta tea sales prices ruled one anna lower for medium leaf and brokens and 1' 2 annas lower for common leaf. Good teas were slightly dearer at 12| to 17A annas, medium at 9to 15 annas, common Farmings and broken Orange Pekoe at 7£ to 10| annas. LONDON TALLOW MARKET. Dalgety and Company, Limited, report having received the following cablegram from their London house dated October 7:—Tallow : 940 casks were offered and 125 sold. The market is nominally unchanged. AUSTRALIAN PRODUCE. Australian and N.Z. Cable Association. (Reed. 9.35 p.m.) SYDNEY. Oct. 8. Following are to-day's prices on the Sydney produce market:— Wheat.—Bulk parcels are being held for the equivalent of 5s 9d ex-truck, at Sydney. Farmers' lots at country stations are nominally at 4s Bd, and, on a Sydney basis, 5s 3d. Oats. —Tasmanian, Algerian, 3s 9d to 4s; white, 5s to 5s 3d. Maize. —Yallow, 5s 6d; white, 5s to 5s 3d. Potatoes. —Tasmanian, £l6 to £l9; New ! Zealand, £l3 to £l4. Onions. —Victorian, £2B; American, 1 £3O. Adelaide quotations are Wheat. —Growers' lots, 5s 4d to 5s fi^d; i parcels, nominally, 5s lOid. | Oats.—2s to 2s 3d.