MONEY AND TRADE

Otago Daily Times, Issue 19218, 8 July 1924, Page 7

MONEY AND TRADE

REVIEW QF WORLD MARKETS. SHIPPING POSITION UNSATISFACTORY. —♦ Press Association—By Telegraph—Copyright. LONDON, July 5. bears that a rise in the bank rate was imminent caused some uneasiness on tho Stock Exchange, and there has been some soiling ol gill-edged stock, with the result that prices have cased all round. Tho decision last Thursday to leave the rate unchanged Jed to a somewhat better feeling and a slight recovery in xirices, but the general impression seems to do that the lunik rate will bo raised before long unless the American exchange moves more favourably and the international financial situation improves. The most interesting event of tho week has been the flotation ot a portion of tho Hungarian reconstruction loan, amounting to nearly 8,000,000, interest per cent., at 88. 'As, including redemption, this loan yields over 176 s per cent., it is not surprising that it was rapidly over-subscribed, the lists being closed a few hours after the opening, DEPRESSION IN SHIPPING. The position of the shipping trade shows no improvement, and the views of a. number of leading ship owners, published in Fair Play, are extremely pessimistic as regards both the present and tho future. For instance, the managing director of a great shipping company points out that, though’ there has .been a small but very welcome improvement in general trading conditions in the past few months, it is duo to two outstanding factors—first, to tho earthquake in Japan, which led to a quite abnormal demand for tonnage to carry building materials, etc., to the devastated area \ and, secondly, to exceptionally heavy crops in the Argentine, which caused a large demand for tonnage. Both these factors are now operating to a tnuefi loassor extent. The managing director continues: “With tho great uncertainty in tho general financial international situation that still exists, resulting in the continuance of restricted purchasing poAver in Europe, tho outlook for the immediate future is far from reassuring. I cannot see any likelihood of the improvement experienced during tho early period of the year being maintained for the next half-year. Oh the contrary, the present sagging tendency in freights, which is apparent m most quarters, is likely to continue, perhaps in an accentuated form, with probably many steamers which arc at present with difficulty being maintained in commission having to be again laid up.” In this connection, it is interesting to note that Germany’s shipping activities are being rcstricted'by lack of money. Tho banks, which' in pre-war days used to advance money to German ship owners on first mortgages on their shins, are now refusing this assistance. A German business man who recently went to Hoi land to try to obtain loans for German shipping gives a gloomy account of liis reception, and describes his complete failure to raise first mortgages on freight steamers, which he considers to be duo to unjustifiable pessimism on the l-avt of the Dutch bankers regarding the linancial reliability of tho German shipping arms. BUTTER PRICES FIRM. Tho firmness in the butler market continues, and, notwithstanding a further advance in prices, the demand shows no diminution. According to one leading importing firm, the satisfactory consumptive demand is largely attributed to the effects of the Wcmblev Exhibition, where upwards of 5,000,000 visitors have had the merits of Australian and Now Zealand butters brought prominently before them. Another suggested reason for the firmness of tho market is shortness in the English makes owing to many dairy farmers selling cream at high prices to hotels anu restaurants instead of making butter, NEW ZEALAND APPLES. The Australian and New Zealand apple season is rapidly drawing to a close, and it appears likely that the final results will prove satisfactory- The demand continues •rood, liigh prices being paid, especially For Stunners. Some of those have realised 25s a case. Even blemished Tasmanian Sturm ors have, made up to 13s a case. The importers continue to complain about the unsatisfactory marking of the cases. In many instances cases marked “Blemished” contain bettor fruit than those marked “Standard.” There are also complaints about had grading, some cases marked 2J)in. containing 'apples under 2in. in diameter.— A. and N.Z. Cable.