FALL IN BUTTER

New Zealand Herald, Volume LXXV, Issue 23145, 17 September 1938, Page 11

FALL IN BUTTER

NEW ZEALAND AT 120/DROP OF 3/- ON WEEK BELOW GUARANTEED PRICE The recent downward trend in butter prices on the London market continues unchecked. Following a drop of 2s near the end of last week quotations for choicest salted New Zealand have now fallen to 120s per cwt., a further decline of 3s over the past week. The market is described as very dull. The decline is even more marked in Australian salted butter, which has fallen 4s to 116s per cwt., according to a Press Association message sent from London on Thursday. On the other hand, Danish at 135s to 136s per cwt. shows a rise of about Is 6d on the week. In unsalted butters New Zealand is selling at 121s and Australian at 116s per cwt. Cheese values have dropped slightly in sympathy, and the market is rather easier. New Zealand white and coloured at 72s 6d to 73s per cwt. show a fall of 3d. Australian white is selling at 68s and coloured at 70s per cwt. Recent quotations and those of a year ago compare as follows: Sept. 16 Sept. 9 Aug. 12 Sept, 17 Butter— 1038 1988 1938 1937 New Zealand 120/- 123/- 121/- 117/Australian .. 110/- 120/- 118/- 117Danisii .. 135/0 134/- 125/- 135/Cheeso —N.Z.: White .. 72/0 73/- 70/0 07/0 Coloured .. 72/9 73/- 70/6 68/6 Canadian: White .. 71/6 71/6 79/- 7Q/Coioured .. 71/6 71/6 79/- 70/- • The basic guaranteed price for butter now stands at 14.89 d per lb., f.o.b. The current London quotation is equal to 14.3d, New Zealand ports. The equivalent price of cheese is about 8.28 d per lb., compared with the new guaranteed price of 8.42 d. A. S. Paterson and Company, Limited, quote:—Butter: The market is quiet. New Zealand, 120s; Australian, 115s; Danish, 1355. Cheese —New Zealand: The market is steady. White, 735; coloured, 72s 6d. Australian: The market is quiet. White, 695; coloured, 69s 6d. DOW JONES INDEX ANOTHER SEVERE CRITIC Recent criticism of the Dow Jones index of American security prices by the chairman of a Sydney company has been supported by Professor T. Hytten, economic adviser to the Bank of New South Wales. Professor Hytten said it was a silly thing to follow an index such as the Dow Jones. It was like following the mob. Probably there were some who had made money out of it,. but probably there wejre a lot more followers who had lost money. The people who had made money had been those who got in first. If it was difficult to follow the index in New York it would be practically impossible to follow it here. Professor Hytten added that an index such as the Dow Jones was useful to look at, but in conjunction with many other factors. It was extremely difficult to read anything into an index alone, and he had never been able to see anything in the Dow Jones index. It was good for one thing—it showed what American investors _ were doing. There was an old war-time ditty to the effect that 50,000,000 Frenchmen could not be_ wrong. Experience had shown that millions of American investors could be very wrong. No one suffered more froni" nerves than a Wall Street speculator. BACON CHAMPIONSHIP NEW WHANGAREI SCHEME [from OUR OWN" correspondent] WHANGAREI, Friday A scheme for enlarging the scope of the national bacon pig championship, by the establishment of provincial courts, has been adopted by the Whangarei Agricultural and Pastoral Society. The prize-money has been raised to £250 aud the conditions of the scheme will be circulated throughout the Dominion. The society has received advice from the chairman of the Canterbury Pig Council, Mr. W. C. Muller, assuring it of good representation from the South Island. LOWER CARPET PRICES REDUCTION IN ENGLAND A large reduction in carpet prices has been agreed upon by Kidderminster manufacturers. One trade body's decision, earl\' in July, to make an immediate reduction of from 10 to 15 per cent on Axminster and Jacquard qualities, was followed the next day by a similar organisation advising its members to mark down all quotations by by from 12 to 15 per cent, reports the Times Trade Supplement. These moves follow a drop of 10 per cent made in December last year, and, it is hoped, will be the means of restoring confidence and stability in the trade.