TRADE AND FINANCE

Otago Daily Times, Issue 18509, 21 March 1922, Page 5

TRADE AND FINANCE

THE BRITISH MARKETS. ' FIRM TONE MAINTAINED. CHEESE OUTLOOK BRIGHT. Press Association— By Telegraph—Copyright. LONDON, March 18. Under the influence of the engineering lock-out, political complications, the Indian unrest, and the South African disturbance, there has been some restriction in business on the Stock Exchange. A bearish tendency became apparent, and British funds had their first set-back for some time, there being numerous profittaking sales; but the markets generally displayed remarkable steadiness, and with the crushing of the Rand rebellion ana the announcement that a number of the most important mines were resuming work immediately, the tone all round improved considerably. This tendency was helped by the general impression that the Budget will reduce income tax by Is. The recent weakness of the American exchange appears to have been due to profit-taking by American investors, which nas ceased. The depreciation of the German mark was the natural result of the drain of the reparation payments. The progress of the wool sales was completely satisfactory, especially the way in which catalogues are being cleared. A noteworthy feature is the German demand, which is well maintained, despite the depreciated currency. German representatives are also inquiring in the English country markets for wool. Reports from the Leipzig Fair state that the German wool textile manufacturers sold on the first day all they could deliver within a reasonable time. Inadequate supplies of wool are restricting the output of finished articles. Considering the enormous quantities of raw material which have gone to Germany in the last 12 months, the probis that the shortage refers only to hosiery sorts. Last month over 10,000,000 pounds of wool was shipped to Germany from Great Britain, and during the last four months the shipments averaged 24,000 bales. There is a great scarcity of fine tops at Bradford owing to the refusal of woolcombers’ operatives to work overtime, which makes it impossible to increase the supplies. * The outlook for the cheese trade is very promising. Our consumptive demand for imported cheese is reckoned at about 11,000 tons monthly; but the March arrivals amounted to only 9500 tons, and only 3800 tons are due in April, mainly owing to the shortage of shipping space from New Zealand; consequently importers are able to raise prices. The only fear is that the advance will check the retail demand. ' The apple supplies are nearly exhausted. The prospects for fresh Australian apples appear excellent. One leading importer thinks that good varieties should realise 20s per case.—A. and N.Z. Cable.