TRADE AND FINANCE

Otago Daily Times, Issue 19182, 27 May 1924, Page 7

TRADE AND FINANCE

THE BRITISH MARKETS. FORTNIGHTLY REVIEW. Prsss Association—By Telegraph—Copyright. LONDON, May 24. The Stock Exchange continues to pursue its somewhat monotonous course, with a noticeable absence of speculative business, except in oil shares, in which there has been a revival of activity. Giltedged stocks maintain their firmness despite the competition of new issues, and evidently there is plenty of money available for investment in them. Proof of this is to be found in the full subscription of the Commonwealth Governments £10,000,000 loan, despite the fact that some people thought its price rather high. Apparently foreign investors are now buying our gilt-edged scrip owing to the instability' of the European exchanges. The market for foreign Government bonds has been generally upset by these violent exchange fluctuations, but this did not prevent the rapid subscription of a Czccho-Slavakian loan of £11,850,000 at 8 per cent. This was issued at 96p Such a high-yielding security proved very attractive, and was over-subscribed within an hour of the opening of the list. Other new issues, both home and foreign, of the investment typo have proved almost equally attractive, and the support given to them is regarded as indicative of the view that the Stock Exchange does not hold much hope of an early trade revival. In its monthly trade review the Economist says: “There is some ground for thinking that there has been since March some slackening in activity, not so much with regard to work in hand, but for future orders. The slight uncertainty follows the precedent of 1923, when business swung along with vigour till midApril, and then experienced a drift back till the end of July. The slightly less assured tone in Britain is perhaps a reflection of the conditions overseas. Reports from the United States are markedly less buoyant, Belgium is experiencing a definite falling off in activity, and in Europe generally the conditions are some what in a state of general suspense.” THE WOOL TRADE. Discussing the wool position a leading importer says: “The restricted Continental demand is due almost entirely to financial stringency and the fluctuating exchanges. It is felt that the temporary tightness may be relieved in a few weeks, and that the small supplies available in July and September will easily oe absorbed. Business generally is showing a steady, though somewhat jatchy, improvement.” The unemployment figures in Yorkshire have fallen to a more satisfactory level, and the position is thus significantly better. The export of cloth shows a considerable increase on last year s figures. It is almost certain that Japan wiil require a largely increased quantity of wool, and the quietness in the United States markets cannot persist much longer. The Continental position gives hiope of some improvement, both 1 politically and financially, and it is significant that stocks of both wool and tops in the Continental centres are considerably below normal. The Home trade is still hampered by difficulties in the export section and the heavy taxation, which increases the cost of production, but business :s gradually showing signs of returning strength. Manufacturers are now showing the n<> season’s spring goods under exceptionally difficult conditions. The necessary and quite inadequate advance in prices demanded for worsteds is checking business. The fact is that the high prices of raw material are extremely difficult to pass on to the distributors. APPLE MARKET IMPROVES. We are now halfway through the Australian and New Zeiuand apple season, and it is satisfactory to report an improvement in the markets and in the general quality of the fruit. There is now a good trade in all British markets for sound, clean apples, and, though the German demand is declining, as it does towards the end of May, business in the other Continental markets, notably Holland and Scandinavia, continues satisfactory, and this accounts largely for the large quantities being purchased for the Continent, the demand being especially good for well-coloured, showy fruit. Bitter pit is now less prevalent than it was in the earlier shipments, and there has been no brown heart. The only trouble is in black-spotted Tasmanians, many of which have been selling as low as 7s a case, and their presence in the markets has undoubtedly affected the good name of Australian apples. The grading of these Tasmanian apples is often unsatisfactory. In many instances there is little or no appreciable difference between the cases marked ’’standard” and those marked “blemished.” At one sale this week apples marked “blemished” actually realised 6d per case more than “standard.” There are also complaints of the smallness of some of the Tasmanian apples, which are much below the size marked on the cases. WHISKY TRADE BUOYANT. Despite the maintenance of the duty on spirits at 72s 6d per gallon, and the strenuous efforts of the Prohibition Party, who continue an active campaign on the platform -and in the press, the whisky trade keeps up surprisingly well. _ At a meeting of one of the largest distilling firms the chairman, in announcing a dividend of 35 per cent., stated that last year had been in every respect the best the company had over experienced, and the sales of their brands, both at home and for export, showed an increase exceeding £2,000,000, compared with previous years.—A. and N.Z. Cable.