TRADE AND FINANCE

Otago Daily Times, Issue 19135, 1 April 1924, Page 7

TRADE AND FINANCE

THE HOME MARKETS. FORTNIGHTLY REVIEW. Fmh Association —By Telegraph—Oopjrich^ LONDON, March 29. Tlie Stock Exchange has been under the influence of a number of adverse factors for the last fortnight, and especially this week, notably tlie London truffle stnke and the dispute between the miners and their employers; also political eventj on the Continent, especially Al. Poiucaro a resignation. The result has been that business steadily decreased until in some speculative mantels it came ah cost to a standstill. iesterday, however, matters improved considerably owing U> rumours, since confirmed, that the tram strike was settled, and news of AL Poincare's happy issue out of his affliction, with the result that tho Stock Exchange closed,, on quite a cheerful note. A bright spot throughout these dull times has been provided by the gilt-edged market, which kept surprisingly upm, thanks largely to the cheapness of mlney and tho fact that, in the absence of the long-hoped-for trade revival, there has been a considerable accumulation of resources for investment, and these have found their way into the gilt-edged market. A striking illustration of the plentifulneaa of money for investment is shown by tho success of the Siamese 6 per cent, loan of £3,000,000, issued at £95 10s, which was subscribed to the extent of £35,000,000 in an hour, without counting large applications from the provinces. The recovery of tho French rate of exchange has continued, and the value of the franc to-day is 78.455 to the £, showing an increase of 50 per cent, in three weeks. The Drench Government appears to have moderated its campaign against speculators, and it is said that its policy now •is to stabilise the franc at about 80.0 to the £. Tho rapid recovery of tho franc lias been somewhat of a disaster for French producers, traders, and speculators. There is little sympathy tor tfio lasLnamed, but many people were made involuntary “bears." Commercial firms with heavy commitments desired merely to protect themselves against the possibility df continued depreciation of the franc, which at one time looked probable. In taking protective measures against this contingency they actually incurred' more serious losses than those against which they desired to insure themselves. The effect has been seen on the Paris Bourse, which has been passing through a severe crisis. The opening of the Australian apple season, which begins with tlie arrival of the Esperance Bay s cargo of Victorian and West Australian shipments, due on Monday, is awaited with considerable interest. The market is still receiving fair quantities of American apples. These are mostly inferior sorts, which are selling cheaply; but varieties making fair prices are—(Jrogons and Newtowns, 11s to 14s, and Jonathans, 11s to 13s. Most of these are somewhat wasty, and if the Esperance Bay’s shipment arrive in good condition they should command much better prices. Supplies of oranges are very heavy, but this ought not to affect the demand for apples. Tlie question of shipment of blackspotted apples from Tasmania is attracting some attention, and fears are f ex pressed in some quarters that the presence of tills fruit on the market may have a bad effect on prices for other Australian States’ fruit, and damage the reputation of Australian apples generally. On this subject, one of the Ici-ding importers says:-—“lt is a matter of opinion. Good fruit should always command the highest price of the day, and it should not be forgotten that, even in the wealthiest communities, there arc many thousands who cannot afford to buy the beet. In any case, the first consideration should be for the growers, who, if their orchards do not produce first quality fruit, should not be denied a market for what they have grown. The risk of loss is theirs, and if they are willing to take changes, they should be allowed to do so. 1 People here will want fruit as much as in former years; but it is clear that there is not so much available, and growers slum I benefit by a higher average for what does come.” i The wool sales are drawing to a close without any sign of weakness. Prices for both merinos and crossbreds arc fully maintained, crossbreds being especially strong, thanks chiefly to the active home demand, which fully compensated for tlie lack of American biddings, which are noticably absent. Regarding the wool textile industry, the Economist’s Bradford 'correspondent writes; “It is unfortunate that little business can bo done in merino tops and yams. Prices are maintained by the strength of tho raw matcrflH»positio'n, but there is a marked absence of activity, as users cannot sell at prirffc based on the cost of wool. In the crossbred section, however, nice steady business is passing all tho time, and medium and low tops show a hardening tendency. Consumption is now on a large scale'* and, as spinners are well booked up for several months ahead, there is little reason to fear a setback. It is obviously a question of price in the marketing of cloth and wholesale fabric. Buyers appear to have made up their minds not to operate at all fr«>ly on current quotations for finer fabrics, The demand still favours cheaper goods, and woollens are more sought after than worsteds.—A. and N.Z. Cable.