BRITISH TRADE REVIEW

New Zealand Herald, Volume LXVI, Issue 20331, 12 August 1929, Page 5

BRITISH TRADE REVIEW

MONEY MARKET NERVOUS.

DRAIN OF GOLD CEASES.

MEAT PROFITS IN BRITAIN. Australian nnd N.Z. Press Association. (Received August 11. 5.5 p.m.) LONDON, Aug. 10. The members of the Stock Exchange resumed business after tho bank holiday in a cheerful framo of mind, thanks chiefly to (he improved conditions of the money market following tho rise of Iho Paris exchange abovo tho -gold export point, and tho consequent, cessation of tho drain of gold from tho Bank of England. With tho fear of an advance in tho bank rate thus allayed thero was a general improvement in prices, giltedged stocks naturally leading tho way. But tho riso in tho New York Federal Reserve Bank rate came like a bolt from tho blue, and rapidly transformed tho cheerful position into one of depression and anxiety.

Thero was general apprehension that an early rise in tho London bank rate must follow. Consequently business yesterday was almost at a standstill, with dealers marking down prices as a precaution. Fortunately thcio was no pressure to sell, and a measure of confidence was restored in tho afternoon by tho Bank of England's statement that the rise in tho New York bank rato did not necessarily connote an advance in London. As a consequence most markets rallied and a somewhat better feeling was noticeable at the close, but uncertainty still prevails regarding tho future, although it is generally believed that the Bank of England will do its utmost to avoid an increase in tho bank rate, as an advance would seriously interfere with tho country's trade. Good Prices for Apples. Next week will see tho end of the Australian and New Zealand apple season, with tho marketing of tho Liverpool portion of the Huntingdon's cargo. The market is still good for Dominion apples, as tho supplies i|rom other sources are restricted, only moderate quantities having yet arrived from America and the Continent. Tho fact that such good prices are being realised so lato in the year is, of course, largely attributable to the fact that supplies from Australia and New Zealand this season totalled only 1,443,000 boxes, compared with 3,950,000 last year, and 1,716,000 in 1927. According to a report of the Food Council retail butchers have been doing well lately. "The results of our inquiry," states the report, "are that the financial position of retail butchers has not only improved since the war, but has improved out of proportion to the increase in the general cost of living. Even the reduced profits of 1927-28 represented estimated returns on capital of nearly 25 per cent." The report attributes the progressive increase in tho incomes of retail butchers for tho three years, 1925 to 1927, to the fact that there has been a falling wholesale market, which has enabled them to obtain an unusual rate of profit, as they adjusted the retail prices to the wholesale only after considerable' delay. Danger to Wool Trade.

A writer in the Yorkshire Post makes interesting remarks regarding the increasing competition, of artificial fibres_ with wool. After quoting a statement by Mr. Tout, president of the Australian Graziers' Association, that he does not think thero is any danger of Australia's losing the proud position of having the greatest wool markets of the world, tho writer says:—"After reading a technical paper dealing with the future of artificial fibres, it is felt that Australia's pride in her superiority in tho wool markets is in serious clanger of being undermined by the rapid advance in the manufacture of artificial fibre. It is a disturbing fact for Australia that the world production of artificial silk alone is now reputed to be equal to the clean-scoured content of tho whole Australian clip." Referring to the statement in Dalgety's Review of the effect of tho craze for artificial silk, which it is stated will probably last for somo time, but sooner or later a revulsion of feeling will come, the Yorkshire Post says those in tho artificial silk world do not view tho question from this angle. Scientists are determined to produce an artificial fibre which in appearance, durability, heat-retaining and other properties, shall rival wool, with tho added advantages of a greater range of colour and more fascinating shades than wool has yet yielded. It will bo a pity if, in tho contest for superiority in tho world's markots, tho importance of the advance of artificial fibres is under-estimated by tho wool producers and wool users. BANK OF ENGLAND. NO CHANGE IN BANK RATE. Australian and N.Z. Press Association. LONDON, Aug. 9. Tho Governor of tho Bank of England, Mr. Montagu Norman, says ho does not consider an immediate riso in the bank rato to bo necessary, unless the position of tho exchanges becomes serious. NEW YORK STOCKS. SLUMP ON EXCHANGE. Australian Press Association—United Service NEW YORK. Aug. 0. Thero was a panicky liquidation of stocks, inspired by tho unexpected increase of from 5 tr fc per cent, in the Federal Reserve Bank rate of discount, which wiped out more than £200,000.000 of quoted values in 15 minutes' trading. It was the most sweeping reaction in tho history of tho New York Stock Exchange. A brisk rally ensued beforo tho end of tho first half hour. There were similar slumps in other financial centres of the United States. Tho total number ot stock sales was 5,022,360 shares.