LONDON TRADE REVIEW.

New Zealand Herald, Volume LXIII, Issue 19383, 19 July 1926, Page 7

LONDON TRADE REVIEW.

DEPRESSION REFLECTED. CHECK ON STOCK EXCHANGE. ADVERSE CAUSES EXAMINED. Australian and N.Z. Cable Association. (Reed. 5.5 D.m.) LONDON. July 17. Business on the London Stock Exchange received something of a check this week chiefly owing to the continued stream of new capital issues, and to declining hopes of ail early reduction in the bank rate, which was responsible for a slight set-back in gilt-edged stocks. While there has been a slight pause in Stock Exchange activity, however, prices in most departments have been wonderfully well maintained.

The Spectator says that although the general response to fresh issues continues satisfactory, there is a growing tendency for their success to depend largely upon the operations of mere premium hunters. Thus the recent South African issue and that of the City of Coventry did not attract many, with the result that the underwriters were left with considerable proportions.

The trade returns for the half year showed declines of £75,000,000 in imports and £65,000,000 in exports. F.ven after allowances are rntide for lower prices this clearly reflects an intense trade depression. The only redeeming feature is that owing to the heavy decline in imports the visible adverse trade balance of £200,000,000 for the half year is rather better than that of the first half of 1925.

Conditions on the foreign exchange market have been feverish so far as French, Belgian and even Italian currencies are concerned. It is undoubtedly disquieting that the Anglo-French debt settlement did not produce a more lasting effect upon French exchange. Goal Strike and Wool Trade.

The continuance of the coal dispute is forcing woollen mills to work short time owing to the coal shortage. This has destroyed all chances of a revival in the Yorkshire trade, and Bradford consequently has suffered from general stagnation for some weeks.

Nevertheless the London wool sales opened with a better tone than the home trade expected under the circumstances. Continental demand for Merinos remains strong and persistent. The outlook for fine wools is decidedly healthy. Even Yorkshire's Merino consumption has been well maintained and prices have held firm. Crossbreds recently had a bad time Export trade was extremely difficult owing to the scarcity of the demand. Prices have been cut to a level which is unworkable for tops and earns. These tire at present cheaper than the raw material. Some drastic adjustment 111 values will be necessary before prosparous trade will be possible. Dawson's report on the wool ci-rlook states:—"There are indications oi improving conditions in the United States mills and of an undoubted betterment in Germany. France and Belgium are still showing interest, as many of their people prefer to invest money in the raw material than in their declining currencies. "The prospects for the coming year's Australian clip are better than was anticipated. There are many signs of improvement. These are more evident in the cloth end than in tops wool, but this is a good augury for permanency. "The demand at present favours fine cloths rather than crossbreds, but the latter's relative cheapness will sooner or later attract attention. The past year's financial losses will be felt for some time, but it is generally realised that the worst is over and that confidence is returning and a sounder position is being steadily established."

Calamitous Fresh Fruit Season. We are approaching the end of the Australian and New Zealand fresh fruit season. So far as i aggregate shipments are concerned, it has been a record season, for Australia and New Zealand exported over 3,000,000 cases. This is about 1,000,000 more than they ever sent before.

Financially, however, the season must rank as the most calamitous in the history of the trade. Fruit has shown less signs of disease than usual, but there has been an exceptionally high percentage of small sized fruit.

So far as condition is concerned, except for the disastrous turn out from one hold on the Port Adelaide, the amount of damage to apples aboard ship has not been great, but pears were not to fortunate.. The market was never good from the beginning. Without doubt the arsenic scare, due to the condition of American apples prior to the first Australian arrivals, definitely reduced the popularity ot apple-eating throughout the country. In view of that it is very doubtful whether, apart from strike difficulties, tho market could ever have absorbed the record quantities of fruit sent in at anything like profitable prices. As an example of the distinct decline in the popularity of apples one of London's largest multiple tearoom firms has never stocked uncooked apples since the arsenic scare. No appreciable amount of arsenic was found on any Australian apples. It was not entirely absent, but it never appeared in a "sufficient quantity to lead to a prosecution. The average wholesale price of apples has been about a lb., but the average retail price was seldom less than 7d. The general strike produced a tremendous congestion in all fruits, but the consumer did not derive any benefit either as to apples or Spanish oranges which at one time sold wholesale at the remarkably low figures of Is to 3s a box. It is impossible to suggest any quick and easy remedy, but if it is in any way possible it would be a great advantage if arrivals of apple boats could be better spaced. Ships coming by different routes and at different speeds at present often arrive at one port together.

OPOSSUM SKIN SALES. PRICES IN DUNEDIN. [BY TELEGRAPH. —OWN CORRESPONDENT.] DUNEDIN. Sunday. The first sale of the opossum season was held yesterday, when approximately 900 skins were offered. This was a much smaller quantity than is usually forward for the first sale, chiefly owing to the fact that the Otago open season is a fortnight longer this year, and that it closed only on July 15, with the result that many trappers have .spot yet sent in their catches. The quality of the skins was generally not as good as is usual at this sale, but probably this can be accounted for by the absence of the usual quantity of Catlins and Southland skins, which have yet to come on the market. The prices which ruled yesterday were good deal better than were expected. There was a particularly keen demand for blues and greys, up to 16s each being realised. Blacks and browns were not so keenly sought after, but prices were generally very satisfactory, the top price being 10s 2d. The next sale will be held on August 13, and it is probable that the success of the first sale will result in larger quantities coming to auction. The following is the range of prices realised Super blues, 13s 6d to 16s; first blues, lis 9d to 14s; second blues, 10s to lis; super greys, 12s to 14s; first greys, 10s to lis 6d; second greys, 7s 6d "to 9s 6d; super reds, 7s 6d to 9$ 2d; first reds, 6s to 7s lOd; second reds, 4s to ss; super blacks, 9s to 10s 2d; first blacks, 6s 6d to 8s 9d; second blacks, 5s 6d to 6s lid; super browns, 6s 6d to 8s Id; j first browns, 5s 6d to 6s 3d; second I fcromts, 4s to ss.