COMMERCIAL SUMMARY

Otago Daily Times, Issue 18686, 16 October 1922, Page 5

COMMERCIAL SUMMARY

STOCK EXCHANGE ACTIVE. THE GERMAN MARK. PANIC LEGISLATION. DRIED FRUITS A LUXURY. Pmo* JUwoiaettoß—By Tel»gr»pb—Copyright LONDON, October 14. (Received Oct. 15, at 5.5 p.m.) The satisfactory conclusion of the Mudania Conference has had a tonic influence on the Stock Exchange, and business has shown a welcome expansion in most directions, the fresh slump in the mark and the rumours of an approaching General Election having been entirely counteracted bv the good news from the Near East. Gilt edges have led the way in the recovery of prices, war loan and conversion loan showing much strength. Industrial stocks have also been active, notably rubbers—on the advance of raw material—and a satisfactory feature is the successful flotation of two good; industrial issues. The fluctuations of the mark have overshadowed everything in the foreign exchange market. It is generally agreed that the main cause of the collapse is the uninterrupted activity of the printing presses. While they continue to turn out paper marks there can be no hope of recovery. The German Government action to restrict the dealings in foreign currencies was in the nature of panic legislation. Financiers here ridicule it. The editor of the Statist writes; “Legislation of this character will not stop the fall in t-e value of the mark either at home' or abroad, even if it can be successfully put into execution. Similar regulations have been put into operation in many countries since the war, but in no instance have they achieved their object except for a brief period. In the case of Germany the eagerness of the holders of marks to exchange them for foreign currency may have given an additional momentum to the downward movement, but the root factor in the depreciation of the mark is the continued multiplication of units of currency, due to the Government’s inability to balance the expenditure and revenue. Strict enforcement of the new legislation may arrest the decline for a brief period, and may even cause a temporary reaction, but these measures cannot provide a lasting remedy for Germany’s currency disorganisation.” The only real remedy lies in balancing the Budget, or covering the deficit by loan. In default of this, the fall in. the value of the mark abroad can only be prevented bv the suicidal plan of stopping foreign exchange transactions altogether. The advance in wool prices at the London sales has naturally given great strength to the Bradford tops market, and those buyers who have been waiting in the hope of getting cheaper wool have been grievously disappointed. Spinners who have been holding off are now obliged to purchase fairly extensively, although they still complain that they cannot sell yarns at prices commensurate with the cost of wool tops. The feature of the woo] sales is the growing American demand for crossbreds, following on the tariff revision. This demand appears likelv to continue to increase, anl the outlook for crossbreds is more favourable than it- has been for a long time past.

The dried fruit market remains very firm for currants and sultanas, owing to limited supplies, hut Valencias are arriving in fair Quantities. Prices are rather easier, and the Australian agents nave reduced lexias bv ss. The Australian stocks are now practically cleared and no more arrivals are expected. The retail prices are very high, currants fetching from 9d to Is 3d per pound, sultanas Is 4d to Is 9d per lb, and valencias Is 2d ’ to Is 6d. There is little hone of any reduction on these prices, so Christmas puddings will be somewhat of a. luxury. The tin market shows a very firm tone, on a good statistical position. The demand continues unabated in America, where consumers are having heavily, there being a strong demand for future shinment. There are indications that the producers in the East are holding up sunplies for better prices. Tile demand for lead for home consumption and export is well maintained, the prospects being very' uncertain. The cheese market appears to be very strong. The stocks in this country are only about one-half those in October.'l92l. The production in Canada this season is estimated to be 30 per cent, below last year, and there is a definite shortage in the United States. —A. and N.Z. Cable.