FINANCE AND TRADE.

New Zealand Times, Volume LXXVII, Issue 5372, 3 September 1904, Page 16

FINANCE AND TRADE.

“Broom ball,'’ on ‘Snlh ■) u:v.', reviewed iho Uu!ii position thus:—U appears certain now that Ihft spring lias boon an unfavourable ono in I lie south-east and quits of the sen) li-west of Russia, in Eastern Germany, in Hninjury, anil in Urn ‘northern part of (ho Balium Beiiiiisnla. From all the evidence now available it appears eertuin I hat Kmiqienn consumers will next sea-ion again be importers of Vnnnsu grain on a very largo scale, fuel Vbat a (treater quantity that usual will have to bo drawn from ex-Bui opean vourees of supply. The Buxine during (he eiirrent cereal year has exported, or ,v ill have by (he end of nest month, about M.tiff,tOO ((liar 1 era, whieli just equals iho record of the sea-on I8!)5-S8. During the ynninf' season it. is fnirty sate to assert •hat Iho quantity obtainablo from the Buxine will not - amount to 20.01)0.0, 'i smarter*, and may not even minis within 5, 0. .0,000 quarters of i hut, quantity. Aus•,i ia-tl niijjaiy, instead of being an cxl.inter on balance of about 000.000 quarter-, will probably he an importer of '..to ;.hod quarter* or more. These two dciriencies will leave Bn rone dependent •quin oulside sources of supply for hOMI.WIO and, perhaps, 10,000,000 quarter* more than was the ease during I he season pest ending. Ifiiriiur lhat time India will have contributed 7.000,01)0 quarters. Argentina over III,(>»0,000 quarters, and Australia, T.0h0.000 quarters. These, three shippers will have contributed in the aggregate over 20,001), nth qua Hers in the twelve mouths ending filsl July. Slow much more are they likely to ho able to .hip next season f The remaining large snurees of supply are the F.3.A. and Canada. Tho” "latter is proniUiug well, and estimates of the crop to bo harvested 'next August are already running to big figures, but the most this grower lias ever been able to market is 4,()()(>,DOD quarters, mid it this quantity should bo increased 50 or even 100 per cent., a most unlikely tvent, there would still bo a considerable icfieiency for the States to make good.

The Australasian manager of ono of the largest manufacturing concerns in iingland, says tlie ‘‘Financial Times,” who has just arrived in London, has made Hie HuUmont that, although mercantile Innness is slowly expanding in Iho differcul states it will take at ieusfc two more good harvests to put mutters right. He stales that agriculturists are still extremely straitened as lo their finances, as, allhough Dm past harvest was a record one, the majority of Din farmers were so heavily iu debt, as Die result of a series of had years, that whatever profit resulted from the sale of their produce has all been quickly absorbed iu paying oil Jheir debts to the storekeepers and merchants who had ho generously supported thorn in Dui lean years.

An impetus was giycn to Dio war risk market at Lloyd’s on the nth of July, says the “Financial Times/’ owing to the report that tlio British steamer Cheltenham jmd been captured by the Kussians. ‘lbis nows caused no little concern iu the room, as tho vessel alone was insured against war risks for JJ-10,000. The steamer was understood to bo chartered with a valuable cargo of railway material, bound from Japan for Korea. Having been considered overdue, she was dealt with on tho overduo market at -P guineas per tent, for total loss only, but this rate soon stiffened to Ho guineas against war risks only, it being recognised that Die steamer might possibly fail foul of tho Vladivostok squadron. As a matter of fact, tho owners of tho Cheltenham were advised by cablegram from Die captain that the ihip had been taken to Vladivostock, and that trial was being awaited at a prize court. One effect of this latest information is that, while underwriters on tho ordinary marine policies, which exclude ill war risks—and she is insured in Lonlon on these terms for vt&bOOO —arc free ;rom liability, those on tho war risks policies for tho largo amount named are icriously concerned* which is not muiiiitbod when the nature of Iho Cheitcutmm’a cargo is taken into account.

Tho question is asked whether alcohol .'or industrial purposes can compete with petroleum 113 regards price. Professor ilelhruck, of Vienna, calculates that the proportion in price, relatively speaking, r,f petroleum to alcohol can be fixed at the ratio of 1 to -■ That is to say, if a gallon of petroleum cost del, one of alcohol can be said to cost Sd. The question is, can alcohol he manufactured at that price? Professor Delbruck came to tho conclusion in a lecture delivered on the 23rd April, 10W, at Vienna, that it could bo done, lie said, ’Alcohol which is made from sugar beet roots can very well compete with and the light produced- therefrom will satisfy everybody; and tile production of this alcohol will ho a. boon to agriculture. In time to come tho number of distilleries will bo doubled, or even quadrupled, and the increase in the production of Ibis spirit will yield cheap fodder for stock.’

.In October last year n contract was entered into between it. Gustave Colonibier and tho Canadian Government for the establishment of a lino of steamers between France and Canada. According to advices, the Canadian Government has withdrawn the subsidy granted, as the terms of the contract have not been complied with. To supply tho place of the defaulting contractor, a British imo of steamers lias boon started, called tho "'Canadian Linos Limited”; their uteamcra are now running twice a month from Rotterdam, calling at Havre, for Quebec and Montreal, taking botli pasisongors and cargo. This lino has been subsidised by rbo Canadian Government, imd is already carrying a largo number uf emigrants and first class passenger, and. in the opinion of the British Conisii I-Cl on oral at Havre, it looks as if tho great difficulty which has attended the establishment of a lino of steamers between Continental ports and Cpnada lias been overcome. The Canadians are determined that tho difference in the cost of ,carriage of their produce to market shall Mot prevent them competing 011 equal terms with producers who enjoy tho advantages of cheap transit. The Dominion Government has recently announced that it hopes to spend a very large proportion of its surplus revenue this year in getting farmers’ products to market. This, it is claimed, will do more than anything else to place the producing interests on a v ;iound footing.