COMMERCIAL.

Otago Daily Times, Issue 18802, 3 March 1923, Page 6

COMMERCIAL.

Daily Times Office, Friday evening. “Broomhall,” in tho Liverpool Com Trade News of January 9, said; "The demand for wheat on our markets during the past week has been generally poor. There has been no lack -of offers from Argentina, Canada, and India, and prices have come down, although sellers have shown little disposition to press sales. Shipments are keeping up well, larger supplies from the Southern Hemisphere making good a reduction in the North American quantities. Comparing last night’s closing prices on our markets with those of a week ago, we find a general decline of Gd to Is 6d ..per quarter. Australian has been held more firmly than other wheats, and some quotations are only 3d lower; on tho other hand, Argentine wheat afloat to Liverpool has declined as much aa 3s per quarter. The political disturbance in Europe and its consequent effect upon the exchanges, is now making itself felt in the wheat markets abroad. It has meant the narrowing of the outlet for wheat of the exporting countries, ' and that, in turn, has influenced lower prices. Yet, taking all the factors into consideration, the London market has held up exceedingly well. The course which values will take depends largely upon the attitude of exporters, and if any undue pressure is made to liquidate stocks, then a further reaction in prices abroad may result. An outstanding feature of tho oversea wheat markets this season has been tho “bull” reports issued in the United States relating to its own crops. Nowadays “bull” movements there carry relatively little weight in London, for the simple reason that reports of the kind have been overdone during the last few years. Generally the basis of action is crop scarce, either by winter killing drought or the hessian fly. Recently it was mooted that America should make a large monetary loan to Germany, so that that country could absorb United States wheat to a greater extent, and that suggestion did assist the “bulls.’ But they have not had it their own way, for they had a set-back when the revised estimate of the 1922 crop was issued in December. The official figures then gave 856,000,000 bushels, or an increase of no less than 46,000,000 bushels on tho previous forecast. Just what exportable surpluses that quantity will provide is not clear. The apparent consumption of the country varies from year to year, but tho opinion is expressed that 600,000,000 bushels for seed and food is a full amount. The United States Agricultural Bureau at tho same time issued its forecast of the area sown to winter wheat this season. This is stated at 46,069,000 acres, which is a little larger than that reported at the corresponding date in the previous season. The condition of the crop in December was given at 79.5, and though moderate, is better than that for last year, when it was 76 points. LOCAL MARKETS. The chief interest in tho milling wheat market during tho week has been centred on tho announcement that tho growers and the millers have entered into an agreement, subject to the approval of the Government, to fix prices for tho now crop, as follows; Tuscan, 5s Id; Hunters, 5s 3d; velvet, 5s sd, free on board at the nearest ports. An extra id per bushel per month will bo paid on these prices, commencing in Juno and ending on October 31. The Government is to bo asked to continue the embargo on tho importation of flour into New Zealand, and the millers are not to charge more than £ls 10s for flour, £5 for bran, and £7 for pollard, f.0.b., or prices equivalent thereto. Tho New Zealand duty on wheat to-day is 2s per cental and on flour 2s Gd per cental. The general opinion amongst local merchants is that tho Government will give its sanction to the proposal made by the millers and the wheat-growers. The Government is itself holding considerable stocks of the wheat which it purchased under the guarantee system, and no doubt it desires to make as small a. loss os possible on its operations. Now that the weather has improved threshing has become general on tho Taieri and in the north. Reports from tho Taieri state that the yields are satisfactory. In one instance 76 bushels of velvet have beerf obtained to the acre, and 64 bushels to tho acre of Tuscan have also been threshed. Tho quality of the wheat is very good, and a large proportion of it should bo available for milling. Good yields are also being obtained jn Canterbury, but in the Oamaru district the prospects are not so favourable, aa it is reported that considerable damage is being done by tho hessian fly. The lowl wheat market is firm at 4s Gd, f.0.b., sacks extra, with holders inclined to wait to see if milling prices arc to be fixed by the Government and what effect they will have on fowl wheat. This time last season low rates were ruling for fowl wheat, but this season there will be a larger proportion fit for milling, and this should have a priming effect on the under-grade quality used for fowl food. Dunedin millers’ prices are aa follows: Flour 2001 b, £ls 10s per ton; 100’s, £l6 10s; 50's, £l7; 25’s, £l7 10b. Bran, £5 10s per ton. Pollard, £B. Oatmeal 25’s, £18; 20O’s, £l7. The demand for oats is quiet, so far as North Island is concerned. Growers in the country, however, are getting higher prices than the f.o.b. equivalent. The f.o.b, price is 3s 5d for A’s and 3s 3d for B’s. These values are equivalent to 2s Bd, sacks extra, on trucks, country sidings, for A’s and 2s Gd for B’s, but growers are being paid 2a 9d 'and 2s 7d respectively. There is a certain element of speculation in evidence, with a view to export business with Australia. It is doubtful, however, whether many oats will be required for Australia. Reports of tho tho effect the recent rains have had on tbo crops there are now being awaited. PRODUCE REPORT. The demand for chaff is barely equal to tho supplies coming forward, but £5 per ton, sacks extra, ex truck, is still obtainable for good quality. Quantities of sacks are now being sent out to farmers, and it is anticipated that heavier supplies will be coming to hand shortly. This may have a weakening effect on prices. Medium and poor quality is alow of sale at £3 10s to £4 per ton, sacks extra, ex truck. Potato digging has become general, and it is difficult to-day to make sales at £7 per ton, Bifcks included, for truck lots. It is noticeable that whereas in many cases tho sbawa have been affected with blight, the disease has not gone down to tho tubers. The price of eggs remains unchanged from last week. Rolls and sides of bacon havo firmed in price. Current local wholesale prices for produce are as follow. —■ Chaff.—Good quality, £5; medium and light, £3 10a to £4. Potatoes, £7 per ton. Dairy Butter. —Bulk, Is 5d to Is Gd; pats. Is sd; milled, Is 5d to Is 6d. Eggs.—Stamped, la 7d; ordinary, Is sd. Canterbury onions, 7s Gd per cwt. Bacon.—Rolls, Is Id per lb; sides, la. Hams, Is Id; boneless, Is sd. FRUIT REPORT. Supplies of peaches and nectarines have increased, but supplies of apricots are nearly exhausted. Good dessert plums have a fair sale, but cooking and inferior sorts are very hard to quit. Some nice lines of dessert apples—Cox s orange pippins, ribatona, and Worcester poarmain—have arrived from Nelson and Blenheim, but on the prices realised shippers will suffer a heavy loss. All tomatoes coming forward are readily placed. The cold weather in Canterbury has I restricted supplies from there, but a few lots are arriving from Otago Control. The market is bare of supplies of oranges. A lino of Rarotongan and Fiji bananas is due to arrive next week. Grapes are in fair supply. Lemons are still slow of sale. Vegetables meet a good inquiry, particularly French beans, peas, and cauliflowers. The following are tho latest prices; Apples.—Dessert, 8s to 10s per case; Cox’s orange pipping, to 10s 9d; cookers, 5s to Gs for best; medium, 4s; inferior, 2s to 3s. Tomatoes. —Christchurch, 2d to 4d per lb; focal liothouso, 7d to 3d. Nectarines, 4s to 5a per half-case; crates, 3Jd to 3Jd per Its. Grapes, la to Is 6d per lb. Oranges.—American, 30s. Lemons. —Italians, 21s. Plums. —Dessert, 2d to 3d; cooking, Ijd per lb; inferior unsaleable. Peaches, 3s 6d to 6a per half-caso; choice denser!, in crates, from 3d to 5d per lb. Pears, 3d to 23jd per lb.

Apricots, 4s to 5s per half-case; crates, 3i to 5d per lb. Cauliflowers, 10s to 12s per sack; loose, 3a to Gs Gd per dozen. Cabbages, 7s to Ss per sack; medium, 3a to 3s Gd. IJrench beans, 4d to 51 d per lb. Marrows, Gs to 7s per case. Green peas, 3d to 4d per lb for best. Cucumbers. —Hothouse, 2s to 3s Gd per dozen; outside, 3s to 3s 6d per half-case. Lettuce, Is per dozen. Spring onions, 3d to 4d per bundle.. White turnips, Sd to Is per dozen bunches. Beetroot, Is per dozen. Parsnips, la per dozen bunches. Carrots, Is to Is Gd per dozen bunches; Gs to 7s per cwt. ' ♦ THE RETURN TO GOLD. The governor of the Commonwealth Bank (Sir Denison Miller) hit tbo nail on the head when tie said it would bo suicidal tor Australia te return to a gold currency and tree trade in gold without the lead ot Great Britain, and to tfial may be autely added it would have been equally suicidal for Great Britain to havo dreamt of returning to gold payments until arrangements tor tmidmg the American debt had been completed (says tfie Adelaide Observer). The latter aspect may bo briefly put. Without tlie British loan funding operation in America there was always lire danger ot the gold of Britain all drifting to America immediately tbo nation got down once more to a gold basis. Having fixed tho period of tho United States debt for a period! many years ahead, tho danger, of such a migration of ttm metal is removed. There is another aspect of the oversea position worth stressing, and that is tbo rise in sterling exchange in New York, tne present rate of 4.68*, against a parity ot 4.86 j;, comparing with as low as 4.36 as recently as September last. The recovery in sterling exchange has synchronised with a fall in the open market price of gold, and tho premium on the precious metal is now relatively slight. Hence tho displacement of one of the chief barriers to a return to a metallic currency. Australia, in common with old world countries, suffered from an inflation of its paper currency. The limit of the inflation so far as commonwealth notes was concerned was £63,000,000. The maximum issue was £59,670,401, reached in October, 1918. The issue at the end of December was about £8,000,000 below the maximum, and, allowing for the Christmas inflation, it is safe to put the issue down at considerably under that total to-day On December 25 there was a gold! holding against the notes of 45.83 per cent. That holding included 500,000 sovereigns purchased from the Gold Producers’ Association, which has been marketing Australia’s gold production under special Acts of the Federal Parliament. A further purchase of a like number of sovereigns was made a few weeks ago, and has still to reflect itself in the gold held against tho commonwealth note issue. The visible stocks of coin and bullion in the commonwealth u-t tho middle of 1914 (before the war) wads £36,125,285 held by the banks, and a reserve of £4,492,585 hold against the Australian notes issued. At the middle of 1922 the amount of coin and bullion hold by tho banks was £21,888,302, and the gold reserve against the note issue was about £23,500,000, or a total about £5,000,000 more than in 1914. There aro many aspects of the question which have an intense financial interest, but for the time being it is sufficient to confine observation to fluctuations in the note issue. The total note issue on tho last Monday of December, tho gold reserve, and the portion uncovered by gold, are compared below over a number of years; Total Gold TJnissuo. reserve. covered. £ £ £ 1915 _ 9,959. r .54Z 4.49*1,585 5,466,9694 1914 ... ... 19,831,417- 7,087,51CJ 11.813,8.904 1915 41,766.122* 14,065,317 98,800,b05* 1016 46,660,462* 16,600,611* 30,059,851 1017. 47,001,269* 17,541,476* 30,350,793 1018 50,045,017 21,756,275* 37,289,641* 1010 ... 56,603,074 23,011,537* 32,601,536* 11120 ... _. 57,651,401* 23,712,480 33,038,021* 1921 ... _ 55,548,572* 23,7(0,442 31,808,1301 1022 ... „ 51,771,431* 23,725,050* 28,046,431' Statute requires a gold cover of 25 per cent, of the Australian note issue, and' the cover to-day is more than 20 per cent, in excess of the requirements of the Act. NEW YORK TRADE AND FINANCE. The outlook for 1923, remarked Commerce Monthly for January, referring to American trade and finance, is for fairly stable business. Tho improvement during last year was primarly th<\ result of domestic demand. Stocks of raw materials and of finished goods in process of reduction throughout 1921 disappeared so rapidly that during 1922 demand had to be met from current production. Despite labour troubles of the worst sort, the country passed rapidly from a condition of curtailed output and widespread unemployment to downright labour shortage. Much foreign gold has oomo into the Floral reserve system, swelling reserves already too large, and slow liquidation of frozen credits has continued. So efficiently has the United States banking system functioned, however, that the credit needs of expanding business have been fully pared for without the development of the tendency to inflation which has been so much feared. Tho American money market has probably been more stable during the last 12 months than in. any year of the last decade. During 1922 the United States mode great progress toward! a condition of industrial, mercantile, and credit stability. Tho course of business in 1923 depends on two factors—domestic demand and tho situation in other countries. Maintenance of domestic demand is conditional upon preventing the increase ol labour costs to the point which will force prices out of reach of large classes of tho buying public. If conditions abroad improve during 1923, business in this country should show substantial gains. VICTORIAN MARKETS. MELBOURNE. March 2. Hides.—An average catalogue was submitted. Bidding was animated, and values remained firm on previous rates. Mediums with substance sold in sellers’ favour. Barley.—English, 3s Gd to 4s; Oapo, 3s to 3s Id. Oats, 3s 8d to 3s 9d. Potatoes, .€3 15s to £4 ss. Onions, £3. ADELAIDE WOOL SALES. Press Association —By Telegraph—Copyright ADELAIDE, March 2. The sixth wool sales have opened. Thera was a largo attendance. The demand for super was strong by Continental buyers. LONDON MARKETS. LONDON, March I. Tallow. —1443 casks offered, 1022 sold. Mutton, 39s Gd to 445; beef, 33s to 43s 3d. Wheat. —Cargoes quiet and unchanged. For parcels sellers asked 3d to Gd more, but closed with only a fractional gain.—A. and N.Z. Cable. (Received March 2, at 8.5 p.m.) Waihi shares: Buyers 28s 9d. Tallow stocks: 5163.t0n5; imports, 2354; deliveries, 3072. ‘ Tho butter market has quietened, buyers having filled requircilients. Prices arc about 2s lower all round, but any material decline is unlikely. Cheese; The market is very strong, and arrivals arc rapidly clearing. New Zealand white, 134 s to 1365; coloured, 136 s to 138 s. DAIRY PRODUCE. Messrs Dalgcty and Co. (Ltd.) report having received tho following cable from London, dated March 1: — “ Butter.—Market dull; New Zealand salted, 2125; Danish, 2205; Australian G.A.Q., 106 s; Australian finest salted, 204 a; Australian finest unsalted, 2065. “ Choose,—Market firm; New Zealand white, 13Gs; colour, 13Ss.” HUDDART, PARKER (LIMITED). '.Feb United Piiess Association.) WELLINGTON, March 2. A Melbourne cable states that the Hud-dart-Parker annual general meeting will be held on March 23. A dividend on preference shares of 3 per cent., 5 per cent, on ordinary shares, and 3 per cent, bonus, will bo' payable on March 24. Tho directors recommend the issue to ordinary shareholders from reserves of one ordinary share for each two held on March 24. Tho share register will be closed from March 12 to 24 (inclusive). WHEAT AND FLOUR. THE GOVERNMENT CRITICISED. fPaa United Peers AasociATTowJ CHRISTCHURCH, March 2. During tho lunch hour at the Addington Workshops, Messrs M'Combs and Sullivan, M.P.’s, addressed a largo gathering of employees on tho subject of the embargo on the importation of wheat and flour. Mr M'Combs charged the Government with aiding the combine, which operated against tho interests of the people. As a result of the price fixed, millers would get a good cut and the growers Is a bushel more for wheat than a fair market price. Mr Sullivan said that the Government's action compelled tho consumers to pay £400,000 more than was necessary for foodstuffs. The meeting decided to assist in petitioning the Government to lift tho embargo. “CONSIGN YOUR EGGS AND BUTTER” To BRAY BROS., Fruit and Dairy Produce Auctioneers, STAFFORD STREET, DUNEDIN. Prompt attention given to correspondence^

CANTERBURY MARKETS. (Pee United Pkits Association.) CHRISTCHURCH, March 2. Tho grain markets are unsettled on account ol' tho price arranged by tiro millers and farmers at thoir conference this week. Some merchants claim that the prices (5s Id per bushel f.o.b. for Tuscan, 5s 3d lor Hunters, and os Ed for Pearl) are on tho exliorbitant side. A fair amount of wheat Is coining forward, r.nd a good deal has been taken under tentative agreements, subject to a ratification of tho prices by tho Government. The oat market is fairly firm and little change has taken place. Cartons are quoted from 2s 7d to 3s 9d for A andi B grade at country stations. Oat-sheaf chaff remains firm, bringing £5 on trucks at country stations. _ • Grass seed is very firm. A spirited inquiry has been forthcoming for perennial and Italian, especially tho former. Buyers arc offering Torn 4s 9d to 5s for both. Cocksfoot is on the dull side. Sales have been reported from 5Jd to s|d! according to tho quality. The depression in the pea market at Homo is not encouraging, and little business is doing locally. Potatoes are slightly firmer. Reports of blight continue to be received from all quarters. The price is £3 10s to £3 15a on trucks for April and May delivery. Linseed is quoted nominally at £l4 per ton on trucks, but it is too early for any great volume of business. The onion market is fairly brisk, bpt farmers are experiencing the results of the good crop in tho Auckland district, which has materially affected the demand from that quarter. Fair business is being- done locally, however, at jurices ranging up to £3 iGs. Fraser and Co., agents for the Otago Egg Circle, produce merchants, 146 Crawford street, Dunedin, report—Eggs: The supply of eggs is sufficient to meet requirements, and prices show no change. We quote Egg Circle eggs, Is 7d; plain/Is 4d to Is Ed per dozen. Butter: Market firm. Pats, Is 3d to Is 4d; bulk, Is 4d. Pigs: Prices steady, and the demand is absorbing all on offer. Bacon pigs, 6d to 6|d per lb; porkers, G-Jd; over-weights to 4d per lb. Tallow: Market steady; worth from 16s to 235, according to quality. Honey: Demand is limited. Prime bulk to 6d, 10lb tins 6s to 7s per tin; sections. 7s 6d per dozen. Beeswax, Is 5d to Is 6d per lb. Potatoes; Market is fairly well supplied, and prices qje firm at from £7 to £7 10s for best sorts; y medium and inferior, 30s to £5. We stock “Star P.” chick food, lucerne meal, poultry meal, fowl wheat, oats, egg- crates, bran, pollard; leg rings (various colours), Is 6d per dozen; special quotations for quantities. Poultry: We yarded a largo entry at our sale on Wednesday, when hens sold from 2s to, 4s 6d per pair, cockerels 2s to 8s per pair, ducks 3s to os per pair, ducklings 6s to 8s 6d per pair, pullets 8s to 15s per pair.