BRITISH TRADE REVIEW.

New Zealand Herald, Volume LXVIII, Issue 20864, 5 May 1931, Page 5

BRITISH TRADE REVIEW.

EFFECT OF THE BUDGET. BETTER SHIPPING OUTLOOK. FEWER CAPITAL ISSUES. LONDON, May 2. The Stork Exchange account which closed on Thursday was very unsatisfactory for almost all the departments except pill-edged slocks, which rallied strongly .Titer the disclosure of the Budget. As soon as it was known that no addition was to l>e made to direct taxation all British funds moved upward, in some cases almost two points, and remained firm.

Brewery and tobacco shares also recovered when it was known that Mr. Snowden was not imposing fresh taxation. Even oil shares, which havo been very depressed, became a shade steadier as the additional tax was less than bad been anticipated, but apart from these industrial shares generally have given way seriously under a number of adverse happenings. The chief among these was renewed liquidation from Wall Street, following the failure of two important funis there, and unsatisfactory advices from the Continent. Other depressing events have been a fall in commodity prices, the decreased earnings of several large trading concerns, and consequent reduction in dividends, and in some cases the passing of them.

As an illustration of the unsatisfactory position, it may be mentioned that new capital issues in April, according to statistics compiled by the Midland Bank, were only £1,687.000, compared with £21,270,000 in April, 1930. It is therefore gratifying to note some signs of recovery in trade. According to the Financial News, in some directions an improvement is now apparent. The number of unemployed on April 20 was 2,513,856, the lowest total since Decem-

ber 22, 1930, compared with the peak figure of 2,691,937 on March 9. Freight rates 'have strengthened, and idle shipping has decreased. In the last fortnight alone about 250 to 280 vessels, representing a tonnage of from 1,500,000 to 1,800,000, have been chartered. Greater strength has been shown in the wheat and maize markets. The retail trade figures for last month make a somewhat better showing. The Financial News sums up: " Although the situation is still full of difficulty, and capable of alarming deterioration, it is incorrect to say that no hopeful sign exists." The apple trade has improved somewhat in the last few days, and although there are still large supplies of Americans available, Australian fruit met with a good demand at rather better prices. The quality of apples from all the States shows a considerable improvement on that of the early arrivals in some previous years, especially as regards maturity and colour. This is particularly the case with Tasmanian apples, which are vastly better than in the previous seasons.

Apparency shippers have taken to heart the advice given last year, and the results aro eminently satisfactory. It is noteworthy that Tasmanian cooking apples have been selling remarkably well. Alfristons are fetching higher prices than dessert apples. This is clue to the shortage of English cookers, notably the famous Bramley Seedlings, which are usually available until well on in the season. This year, however, supplies of them aro practically exhausted. Consequently thero is a great run on apples like Alfristons and Wellingtons.

DAIRYING INTERESTS. SOUTH AUCKLAND AREA. ACTIVITIES OF ASSOCIATION. [from our own correspondent.] HAMILTON, Monday. A keen interest in the problems facing the dairying industry was taken by members of the South Auckland Dairy Association during the year, said Mr. S. A. Ferguson, president of the association, at the annual meeting held in Hamilton today. An executive had been appointed to deal with the claims of employees before the Arbitration Court. Representations had been made to local bodies and to the Minister of Transport with a view to having relief granted to owners of cream and milk lorries. No success had attended these efforts. The matter of standardised cheese had been investigated and the opinion had been expressed that. the. brand should be altered to New Zealand Cheddar cheese and that no change should be made in the present standard of fat content. It had been decided to ask the Department of Agriculture to carry out experiments to ascertain what Quantity of skim milk might be added without detrimentally affecting the quality of standardised cheese. Since these decisions had been reached, the percentage of fat in dry matter had been raised to range from 53 to 55 per cent, through the season. Mr. Ferguson said an arrangement had been made regulating the retail price of butter. Mr. Ferguson was reelected president of the association and Mr. Dynes Fulton and Mr. IT. J. Ambury were elected to the vacancies on the exeeiftive. CUNARD SHIPPING COMPANY. NO DIVIDEND THIS YEAR. [from our own correspondent.] LONDON. April 1. Gross income of the Cunurd Steam Ship Company fell by £966,509 to £2,662,396 in the year 1930, and after meeting all charges, including depreciation and interest, the net balance was £18,601, a decline of £791,038. From the reserve fun 1 of £1,500,000 the sum of £861,304 has been applied in writing down book value of shares in subsidiary and other companies, while £138.696 has been transferred to contingencies fund, leaving the general reserve at £500,000. The re poll explains the earlier intiina. lion of the directors that profits for 1930 were not sulPcient to enable them to re commend a dividend. Ihe total of the balance-sheet is now £17,734,243, or £722,975 less than at December, 1929. Steamships, entcied at £8,092,303, are £437,444 below the previous figure, and shares in subsidiary companies arc down by £813,738, after giving effect to the above-mentioned writing down. The company, which dates from 1878, owns 22 vessels, aggregating 383,589 gross registered tons, and operating between Great Britain, New York, Boston, Canada and Mediterranean ports. It holds all tho shares of the Commonwealth and Dominion Line, a controlling interest in the Anchor Line' (Henderson Brothers), and Thos and .Jno. Borklebank, and an interest in the Robert Refold Company, Montreal. The gross tonnage of Cunard and associated lines is 915,938, against 957,199 at December, 1929.