COMMODITY GAMBLING

New Zealand Herald, Volume LXXII, Issue 22032, 12 February 1935, Page 9

COMMODITY GAMBLING

LATEST - DEVELOPMENT

PEPPER MARKET CRISIS BROKERS* HEAVY LOSSES RUBBER FIRM "POSTED" By Telegraph—Press Association—Copyright (Received February 11, 9.35 p.m.) LONDON, Feb. 11 Mr. Joseph Rolls, head of the Mincing Lane firm of Rolls and Son, brokers, founded in 1861, stated today : "The inability of the pepper pool to finance purchases which we made in good faith on its behalf means ruin to my firm. There should be the fullest investigation into the pepper pool's activities." Mr. Rolls had to find £280,000 to stave off failure. The Observer says the attempt to " corner " white popper collapsed largely because it was engineered by outsiders speculating in a commodity on which they were not sufficiently informed. Apparently they did not realise that if the difference in the prices of black and white pepper were pronounced enough it would be profitable to convert the black to white.

A problem is the orderly marketing of the four years' normal supply, which has now accumulated in London.

The Daily Telegraph's financial editor says that following the compulsory winding up petition against the firm of James and Shakespeare, Limited, a firm engaged in metals, but which is stated to have endeavoured to effect a pepper pool, arrangements have been made to take over their open position in metals. The amount involved is 7000 tons of copper and 1435 tons of tin. These commitments have passed into strong hands. Copper, consequently, was 3s 9d per ton firmer on Friday. The cash price of tin rose 3s 9d for forward delivery, then fell 6s 3d owing to the abnormal technical position. Messrs. J. F. Adair ajid Company, rubber brokers, were " posted " on Saturday. They say this is not connected with the pepper pool, and that they acted in good faith as brokers' agents. The rubber market on Saturday was not affected and closed firm. The Financial News estimates Adair and Company's commitments at nearly £1,000,000.