WATCHING TRADE

New Zealand Herald, Volume LXXV, Issue 23072, 24 June 1938, Page 7

WATCHING TRADE

- BRITISH DEPARTMENTS POSSIBILITY OF RECESSION STERLING-DOLLAR RATE (Received June 23, 6.5 p.m.) British Wireless RUGBY, June 22 The Prime Minister, Mr. ChamberJain, declined irj the House of Commons to accept a suggestion that there was a business slump. JEfe assured the House, however, that the departments concerned had the possibility of a cyclical recession in economic activity, and measures desirable to meet it, constantly under review. The Chancellor of the Exchequer, Sir John Simon, was asked whether in view of the fact that British export trade was being seriously endangered by the fall in the price level of primary commodities, and that this in turn was largely the result of adverse developments in the United States, he wouid consider the desirability of recommending action designed to alter the present sterling-dollar exchange rate, and raiso the sterling level of commodity prices. The Financial Secretary to tho Treasury, Captain Evan Wallace, replied in the negative. He said tho Chancellor did not consider the action suggested would be likely to achieve the purpose stated, and added that it would be contrary both to the tripartite currency agreement and the statutory provisions governing the use of tho exchange equalisation account. £3,OOO,OOO_SURPLUS COMMONWEALTH FINANCES HEAVY FALL IN WOOL EXPORTS (Received June 23, 8.48 p.m.) BYDNEY, June 23 The revenue and expenditure returns for the Commonwealth and States for IX months disclose a healthy position, and the Federal Government is assured of a surplus well in excess of £3,000,000 for the current financial year, while most of the States show balanced budgets or small surpluses. During the first 11 months of the current trade year Australia exported greasy and scoured wool to the value of £44,500,000, which is £15,000,000 less than in the corresponding period last year. MARKETS IN LONDON LOWER PRICES FOR TALLOW The Department of Agriculture has received the following cablegram, dated Juno 17, from the High Commissioner for New Zealand in London:— Tallow.—The market continues quiet on the spot, with prices unchanged at about Is below last week's rates; an auction will be held next week. Hemp.—Manila: The market is dull and easier, with a poor demand. "K" grade, June-August shipment, sold £l9. Sisal: The market is very quiet and slightly easier. June-August shipment quoted sellers £l6 15s. Now Zealand: The market is very quiet except for the Admiralty inquiry; quotations on the basis of fair, £i6 10s to £l7. Fruit- The Port Chalmers disi charged at Hamburg, the Port Dun- | edin and Rangitane at London, the Cambridge at Liverpool and the \ Middlesex at Glasgow. Apples: Tho market is steady. The following are the i market values of sound-conditioned j fruit of the varieties mentioned, the I range of prices generally} representing 1 the difference between the several ! grades and/or counts, with variable- ■ conditioned fruit of similar varieties j proportionately less in value:—Doughi nrty apples, 12s, 13s; Granny Smith, 10s o<l. 13s 6d: Golden Delicious, lis, 12s; Delicious, Sturmer, Rokewood and Yates. 10s od, 12s; Statesman, 10s 6d, lis 6d: Ballarat. 10s. lis; Dunn's Favourite, 8s 6d. 10s fld.

BANKING LEGISLATION REPLY TO BANKER SYDNEY, Jnne 23 Commenting on the criticism of the proposed Federal legislation which would require trading banks to keep a percentage of their total deposit liabilities as a cash deposit with the Commonwealth Bank, made by the general manager of the Bank of New South Wales, Sir Alfred Davidson, the Federal Treasurer. Mr. R. G. Casey, said that as Sir Alfred Davidson had no knowledge of the Government's proposals ho was not in a position to criticise them. In tho course of an address to the Institute of Accountants Sir Alfred Davidson said the proposed legislation would be bound to lead to ft drastic reduction in advances, resulting in a decline in business activity, incomes and employment. It would also disturb tho development of the Australian banking system from tho linos of the welltriod and flexible English system and would produce a revolutionary change, bringing with it undesirable rigidities, which had proved so unsatisfactory in other countries. DQJMINION WOOL SALES NEXT SEASON'S ROSTER The roster of Now Zealand wool Bales for 1938-39 is as follows: —Auckland, November 28, January 24, March 27; Napier, December 2, February 20, April 4; Wellington, December 7, January 9, February 15, March 23, April 24; Christcrurch, December 12, January 30, March 3, April 14; Timaril, December 16, March 7; Dunodin, December 20, February 2, March 16; Wanganiii, January 19, February 24, March 30; Invercargill, February 3, March 11. Tho roster is subject to adjustments. THE LONDON MARKETS RECOVERY PACE SLACKENS LONDON, June 22 Although the London markets are still cheerful, the pace of the recovery is slackening. London views the rapidity of tho Wall Street advance with some misgivings, but sentiment over the long-term outlook is inclined to "bullishness." SHORT LOANS AND BILLS LONDON DISCOUNT RATES LONDON, June 22 Discount and short loan rates on the London market, compared with those for last week, are as follows: — June 15 Juno 22 p.c. |).O. Day-to-day loans .. ,% , ]A . , Fine trade bills (3 mos.) 2t02%2 to 2% Bank bills (3 mos.) .. % Aa Bank, bills (6 mos.) .. % A Treasury bills (2 mos.) "Aa An Treasury bill (3 mos.). %• Aa